The Social Gaming and Lottery Association (SGLA) has voiced sharp criticism against California’s proposed anti-sweepstakes legislation, AB 831. The organization warned that the bill could harm both tribal communities and the state economy.
AB 831, now moving through the legislature, seeks to tighten restrictions on sweepstakes casino operations. Supporters argue it will curb illegal gambling activities.
However, the SGLA and several tribal groups contend the measure unfairly targets lawful platforms while ignoring broader economic consequences.
Key Arguments of the SGLA
According to the SGLA, AB 831 risks worsening economic disparities among California’s tribes. Many tribal communities have relied on sweepstakes casino operations for supplemental income and local employment opportunities.
The group further argued that shutting down these platforms would erase a $1 billion industry in California. This loss, they said, would strip vital revenue from tribal operators and diminish the state’s overall tax intake.
SGLA Executive Director Jeff Duncan criticized the bill’s intent.
“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.
He added that lawmakers should focus on implementing the existing tax framework rather than eliminating the industry entirely.
The SGLA emphasized that regulation, not prohibition, would better protect players while ensuring legitimate operators continue supporting the economy.
Moreover, the organization also cautioned that a sweeping ban could drive players toward unregulated offshore sites, creating more consumer risks.
Tribal Nations Voice Complaints
Several Tribal Nations in California have voiced strong opposition to AB 831. Among them are the Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria.
These tribes argued that AB 831 unfairly benefits larger tribal casino operators located in better geographic markets. They stressed that smaller tribes, already at a disadvantage, rely heavily on sweepstakes casino operations to sustain their communities.
Tribal leaders warned that the bill could deepen inequalities and strain state-tribal relations. They urged lawmakers to consider regulation and dialogue as more effective solutions.
AB 831: Governor Newsom Holds the Final Decision
With AB 831 now passed by the legislature, the bill awaits Governor Gavin Newsom’s signature to become law. The SGLA has urged him to reconsider.
“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 economy while positioning California as a leader in next-generation gaming technology,” the SGLA said, calling on the governor to take their side.
As debate intensifies, the future of sweepstakes casinos in California remains uncertain. Both the SGLA and tribal nations vow to keep pressing their case against AB 831.