The Social and Promotional Games Association (SPGA) has issued a strong condemnation of AB 831, which the organization believes is detrimental to the state’s local economy, specifically over the bill’s intent to outlaw sweepstakes social casinos.
Sweepstakes once again in lawmakers’ crosshairs
The idea that an entire category of digital promotions and entertainment can be banned is counterintuitive, the SPGA argued in its statement.
The association similarly said that lawmakers have not acted in good faith, introducing last-minute amendments to secure the advancement of more controversial language that may not have been examined properly.
"The bill was amended at the last minute, without stakeholder input, without supporting data, and without clear evidence of harm," a statement by the association shared with the media read. The SPGA urged California not to rush into "creating new crimes" and "disrupting legitimate businesses" but to focus on getting the facts straight.
The SPGA has urged lawmakers not to rush into untested waters but rather call on a public debate and also spend time educating themselves about the facts of what social sweepstakes casinos were.
What is more, the SPGA went forward to outline and focus on specific issues with the current language of AB 831, which, if passed and signed into law, would constitute a major disruption, both economically and socially.
AB 831 has been defined as a proposal that relies on "vague language" and one that seeks to criminalize anyone who operates a "sweepstake game" without actually clarifying what a sweepstake game may be in the first place. In other words, everyday promos, rewards apps, and marketing campaigns are at risk of legal ramifications if the bill is passed.
Sweepstakes remain a contentious point among governors and lawmakers
Furthermore, there is no specific evidence of harm that AB 831 offers to argue its case, i.e., that sweepstakes and social casinos are indeed detrimental in any way. In other words, banning sweepstakes is presented as a solution to a problem, but the problem has not been demonstrated.
Once again, the SPGA reiterated that the sweepstakes model was based on legal precedent and used by companies such as Starbucks, Microsoft, Marriott, and others.
The association also urged lawmakers to reflect on their actions and ensure that California remains at the cutting edge of novel technology and does not give in to reactive forces that put innovation in a chokehold and stifle businesses.
While AB 831 is far from being a law, especially with the state’s governor against such blanket bans on entire sectors, sweepstakes remain targeted by lawmakers, and even the California Attorney General, RobBonta, who issued an opinion in which he argued that daily fantasy sports contests are a form of illegal gambling and ought to go.