SGLA argues California sweepstakes ban shows ‘complete disregard for facts’

The Social Gaming Leadership Alliance (SGLA) has shared a statement of its disappointment in the passing of the California sweepstakes ban bill.

The SGLA has criticized the decision of the California Assembly Governmental Organization Committee to pass Assembly Bill 831 (AB 831), which would see online social games with sweepstakes promotions banned in California.

In a public statement, the SGLA leadership estimated that the bill would remove more than $1 billion in direct and indirect economic activity across the state of California, potentially depriving the state government of hundreds of millions of dollars in revenue each year.

“Today’s hearing exposed the committee’s complete disregard for facts, economic reality, and the voices of tens of thousands of Californians, all to hand monopoly power to tribes that have already invested hundreds of millions of dollars in Las Vegas and California coastal properties,” said Jeff Duncan, Executive Director of SGLA and former Congressman. “All the while, passage of this bill would deny our tribal partners the very opportunities the proponents themselves have used. If this damaging bill moves through the Assembly, we hope Gov. Newsom will see it for the poor policy it is and veto AB 831.

“As the committee heard today, the entire premise of this bill is false. The proponents have consistently said that online sweepstakes are illegal throughout this process. If that were true, then what is the need for AB831?

“The reality is the proponents know this industry is legal. The bill isn’t about clarifying the law. It’s about changing the law to give a few wealthy tribes exclusivity while shutting down a legal industry.”

The opposition to the sweepstakes bill

The SGLA argue that more than 16,000 Californians are opposed to the bill, having written nearly 33,000 emails an made nearly 4,500 calls to legislators trying to block it. Several Californian tribes have also been vocal in their opposition to the bill, while groups like Californians United for a Responsible Budget have also sprung up to block the bill.

The committee has also heard complaints about the “desperation” of AB 831’s supporters, with the SGLA claiming people have received threats, with proponents saying that “toe tags will be helpful to identify our next of kin.”

Rather than the sweepstakes ban, the SGLA is advocating for “a modern regulatory framework that ensures robust consumer protections, supports tribal self-determination, preserves choice for players, and harnesses the economic potential of online social games to strengthen California’s economy.”

Featured image: SGLA

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