California’s Assembly Bill 831 (AB 831), which seeks to ban sweepstakes casinos, is drawing criticism from multiple parties as it quickly moves through the legislature. Tribal leaders and sweepstakes operators have spoken out against the bill.
Jason Giles, Executive Director of the National Indian Gaming Association, warned that AB 831 is “moving way too fast for anyone to comprehend,” leaving little time for meaningful evaluation.
Concerns also extend to the future of gaming markets. Giles cautioned that even with a ban, the rise of cryptocurrency features could complicate enforcement.
Tribal representatives like James Siva of the California Nations Indian Gaming Association argue that AB831 threatens tribal sovereignty by imposing restrictions without proper consultation.
Siva highlighted attempts by some operators to entice smaller tribes with promises of revenue, tactics he described as efforts to divide tribal unity. This was seen when sweepstakes giant VGW established a partnership with the Kletsel Dehe Wintun Nation. Siva urged tribes to remain steadfast and collaborative in defending their sovereign rights.
While tribal leaders focus on sovereignty and the risks of a rushed legislative process, prominent sweepstakes operators are taking a different approach.
As California lawmakers prepare for a pivotal hearing on Assembly Bill 831, which is expected to come within the next few days, Chumba Casino is rallying its user base to push back. Owned by VGW, Chumba is using in-app pop-ups to call on California users to “Save the games you love!” and sign a petition opposing the proposed ban.
The pop-up isn’t just merely symbolic; it has utility as well, directing players to Quorum, a digital advocacy tool that makes it easy to take action. With a few clicks, users can send emails, make phone calls, or tweet directly at their representatives, amplifying opposition to AB831 ahead of key legislative debates.
By turning its customer base into an organized lobbying force, Chumba is ensuring player voices are part of the political battle over the future of sweepstakes casinos in California. This is no surprise, taking into account the fact that California is indeed an important sweeps market.
According to a recent report from Eilers & Krejcik Gaming (EKG), a prominent consulting firm that specializes in the gaming industry, California accounts for a major portion of the sweepstakes market.
EKG suggests that sweepstakes regulation could bring in an additional $300 million in state tax revenue. If a sweepstakes ban goes through, that means lost revenue. It could also push current California users to unlicensed and unregulated offshore platforms, since online casinos are unavailable within the state. These sentiments were brought up by the Social Gaming Alliance in their push back against AB 831.
In addition to lost revenue, offshore operators often lack responsible gaming tools, clear dispute resolution processes, or protections for deposits and winnings. This adds the issue of player safety at the forefront of this legal battle.
In sum, with tribal sovereignty, player advocacy, player safety, and hundreds of millions in potential tax revenue at stake, AB 831 is shaping up to be one of the most contentious gaming battles in California’s recent history.
