Social Gaming Leadership Alliance urges California governor to veto sweepstakes ban

The Social Gaming Leadership Alliance (SGLA) called on California Governor Gavin Newsom to veto Assembly Bill 831, a measure that would ban dual-currency social games and sweepstakes casinos, warning the legislation could strip $1 billion from the state’s economy.

The bill, sponsored by Assembly Member Avelino Valencia, passed both chambers of the legislature unanimously and now awaits Newsom’s decision. He has until Oct. 12 to sign or veto the bill. If he takes no action, it will become law by pocket signature.

“It is incredibly disappointing that the California Assembly decided to pass AB 831. Beyond the fact that this bill would worsen economic disparities among California tribes, put California to the back of the line in terms of digital innovation in this space, and take away a popular form of entertainment for residents, it will immediately strip $1 billion out of the state’s economy,” said Jeff Duncan, executive director of the SGLA.

The SGLA, which earlier this year absorbed the Social and Promotional Gaming Association (SPGA) to form a single advocacy group, has members including Virtual Gaming Worlds, ARB Interactive, PLAYSTUDIOS and Yellow Social Interactive. The group says it promotes four principles: free-to-play gaming options, responsible gameplay, protecting players and maintaining age-restricted platforms.

Opposition to AB 831 has also come from smaller tribes including the Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria and Big Lagoon Rancheria.

Support for the measure has come from the Yuhaaviatam of San Manuel Nation, the California Nations Indian Gaming Association and the Sports Betting Alliance.

A recent poll cited by the SGLA shows 85% of Californians support allowing social games to continue, either in their current form or with stronger regulations and taxation.

“We implore Governor Newsom to veto this bill and instead open the door for online social games to support economically disadvantaged tribal nations and the state’s economy while positioning California as a leader in next-generation gaming technology,” Duncan said.