Sweepstakes casino trade groups are urging California legislators to oppose recent legislation that would ban their industry.
Both the Social Gaming Leadership Alliance and the Social and Promotional Games Association released extensive statements opposing Assemblymember Avelino Valencia’s AB 831, which would ban sweepstakes casino operators in the Golden State.
“We cannot look the other way while these platforms exploit legal grey areas,” Valencia said in a statement. “These operations undermine the voter-approved framework that affirms Tribal governments’ sovereign right to conduct gaming in California. AB 831 strengthens that framework and ensures gaming in California remains fair and accountable.”
The California legislative session runs until Sept. 12. Legislation can carry over to the 2026 session.
Sweepstakes casino responses
Sweepstakes giant VGW launched SGLA to better educate US stakeholders. The organization is led by former US Congressman Jeff Duncan.
Duncan said the legislation would push players to black market operators without any consumer protections. He also said the legislation could affect games like Reader’s Digest sweepstakes and McDonald’s Monopoly.
“Many Californians play online games but this rushed proposal, which subverts proper process, would abruptly cut them off from popular, free-to-play entertainment they love,” Duncan said. “It was written by those involved in the gambling industry and introduced without providing the online social gaming industry any meaningful opportunity to engage.
“These parties with clear vested interests want to eliminate any and all perceived competition and are trying to deceive California legislators with a campaign of deliberate misinformation that, if successful, would close off a potential revenue stream for the state.”
Second association push back
The SPGA said it “is deeply troubled” by the “backroom ban.” It noted the legislation was inserted into an unrelated bill, which was still tribal gambling related.
“This isn’t how sound policy gets made,” said a spokesperson for the SPGA. “A last-minute effort to outlaw legal digital games, without public debate, expert input, or economic analysis, sends a chilling message to entrepreneurs, innovators, and investors across the state.”
“California voters didn’t sign on for backroom deals dictated by powerful political interests. With the state facing wildfires, a housing crisis, and a full federal assault on Californians’ rights, it’s astounding that any lawmaker would make banning mobile games a priority.”
Like the SGLA, it said the legislation could affect major companies and their sweepstakes and rewards offerings, like Marriott, Microsoft and Starbucks.
Sweepstakes ban has tribal backing
The California Nations Indian Gaming Association is supporting the bill. Tribal nations hold gambling exclusivity in California, including the Yahaaviatam of San Manuel Nation. The tribal gambling industry contributes $25 billion and 112,000 jobs to the state, according to CNIGA Chairman James Siva.
“We support this legislation that will close dangerous loopholes and strengthen the integrity of California’s gaming system,” Johnny Hernandez, Jr., vice chair of the Yuhaaviatam Tribal Council of San Manuel, said in a release. “We remain committed to defending a proven framework that protects the sovereignty of Tribal Nations and delivers real and lasting benefits to all Californians.
“Together, Tribal governments and the State of California will continue to address and take decisive action against illegal internet gaming in all its forms.”
The SPGA did note that the San Manuel’s Yaamava Resort & Casino operates a social online casino.
