The Social Gaming Leadership Alliance (SGLA) has urged California’s Governor Gavin Newsom to reject Assembly Bill 831, a proposed law that seeks to prohibit dual-currency social games and sweepstakes casinos, cautioning that this measure could result in a $1 billion loss for the state’s economy.
This bill, introduced by Assembly Member Avelino Valencia, received unanimous approval in both legislative chambers and is now pending Newsom’s approval. He has until October 12 to officially sign or reject the bill; otherwise, it will automatically become law through pocket signature.
“It’s deeply disheartening that the California Assembly opted to pass AB 831. This legislation not only exacerbates the economic inequalities faced by California tribes but also places California at a disadvantage regarding digital innovation in this domain and removes a favored entertainment option for residents. Additionally, it threatens to directly remove $1 billion from the state’s economy,” remarked Jeff Duncan, the executive director of SGLA.
The SGLA, which merged with the Social and Promotional Gaming Association (SPGA) earlier this year to unify their advocacy efforts, includes members such as Virtual Gaming Worlds, ARB Interactive, PLAYSTUDIOS, and Yellow Social Interactive. The organization promotes four key principles: free-to-play gaming models, responsible gameplay, player protection, and age-restricted platforms.
Opposition to AB 831 also includes smaller tribes like the Kletsel Dehe Wintun Nation, Sherwood Valley Rancheria of Pomo Indians, Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria.
Supporters of the bill include the Yuhaaviatam of San Manuel Nation, the California Nations Indian Gaming Association, and the Sports Betting Alliance.
A recent survey shared by the SGLA indicates that 85% of Californians favor allowing social games to remain available, whether in their current format or with increased regulations and taxes.
“We strongly urge Governor Newsom to veto this legislation and instead consider how online social games can aid economically disadvantaged tribal nations and bolster the state’s economy while establishing California as a frontrunner in next-generation gaming technology,” added Duncan.