The Social Gaming Leadership Alliance (SGLA) has voiced its concerns over the successful advancement of Assembly Bill 813, which is now likely to materialize as enforceable law.
Listen to reason, SGLA urges Californian governor, lawmakers
These steps could now lead to the likely outlawing of social sweepstakes products, such as casinos in the state, and cost California a $1-billion industry, the SGLA warned in a press statement.
"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," SGLA Executive Director Jeff Duncan argued.
Before this reality comes to pass, however, AB 831 still needs a nod from California Governor Gavin Newsom, who would have to pass or veto the bill. The governor has 30 days to decide. If he refrains from either signing or vetoing it, the bill will automatically become a law within 30 days.
Yet, the SGLA may have reason to worry as lawmakers are indeed moving against the sector at a rapid clip, whether they want to entrench the interests of a select few or out of fear that the sector is skirting sector regulation.
The SGLA has argued that the premise of AB 831 is false. There is nothing illegal about social sweepstakes casinos, which are completely legal and based on precedent, the association further argued.
"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," Duncan explained. The SGLA and other defenders of the sweepstakes model have urged lawmakers to focus instead on actualizing the tax framework that governs the law rather than doing away with the industry entirely.
Kletsel Economic Development Authority CEO Eric Wright was also critical of the bill, arguing that by imposing a ban on sweepstakes, emerging opportunities would be denied for others, including tribal gaming operators.
Tribal nations are similarly not too happy with the bill’s passage
Among those mounting an opposition are the Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria, who have argued that fellow tribes who already enjoyed better geography wanted to deny opportunities to others.
The SGLA maintains that online social games are not gambling, but there have been reports to suggest otherwise, as the majority of players, for example, participate in such platforms to win real money, even though the platforms themselves do not advertise it openly.
"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 economywhile positioning California as a leader in next-generation gaming technology," the SGLA said, urging the governor to take their position.
