Californian Tribe Aligns with SGLA to Fight Sweepstakes Ban

Californian tribe Kletsel Dehe Wintun Nation is joining the Social Gaming Leadership Alliance (SGLA) to voice opposition to Assembly Bill 831, which aims to prohibit sweepstakes promotions in the state.

A welcome to California sign. The state’s sweepstakes ban bill is now facing opposition from a tribal group.
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Introduced by California Attorney General Rob Bonta, Bill AB-831 seeks to prohibit online games and sweepstakes that offer prizes, gifts, or other forms of compensation to participants. While it is currently in the state legislature, the measure has been met with resistance from multiple industry stakeholders.

The SGLA is leading the charge, and interestingly, the Kletsel Economic Development Authority (KEDA) – the economic development arm of the California Tribe – has also joined the coalition to fight against the legislation.

It is unusual to find tribal groups supporting digital gaming platforms mainly due to concerns of revenue diversion from traditional brick-and-mortar casinos, especially in states where this sector is dominated by tribal gaming operations. It is also worth noting that AB-831 is heavily backed by many tribal groups, likely driven by a desire to maintain their exclusive hold on sports betting in California.

However, Kletsel Dehe Wintun Nation has its reasons for deviating from the norm. According to the group, the bill may limit economic growth prospects for smaller tribes, particularly those in remote or isolated areas.

For Tribes like ours, geography has always limited traditional economic development. It is self-serving for large, well-established gaming tribes to advocate for policies that restrict emerging digital commerce opportunities for others, effectively holding smaller and less-advantaged tribes' hostage to their location. Eliminating lawful, regulated digital opportunities will deepen existing disparities, reduce self-sufficiency and undermine California’s commitment to economic justice for all tribes.

Eric WrightCEO of Kletsel Economic Development Authority

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Growing Resistance to Bill

Before KEDA bolstered their ranks, the SGLA and Social and Promotional Games Association had been actively campaigning against the bill, as is their usual practice in states that are introducing or have introduced varying bans on sweepstakes. As of last month, their joint petition against the measure had gotten over 20,000 signatures.

The SGLA is proud to stand with the Kletsel Economic Development Authority to urge the lawmakers to reject AB831 and instead support policies that foster economic opportunity, respect tribal sovereignty, and preserve access to popular forms of digital entertainment for all Californians.

Jeff DuncanSGLA Executive Director

In related news, New Jersey has become the latest state to officially ban sweepstakes gaming, after Governor Phil Murphy signed Bill A5447 into law. The state joins other jurisdictions like Montana and Nevada to make this move.

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