SGLA Responds to AB 831: “Bill Based on Misleading Claims”

Following the unanimous 6-0 vote to pass California's anti-sweepstakes casino bill AB 831 from the Senate Committee on Public Safety to the Senate Appropriations Committee, one of the key groups against the legislation, the Social Gaming Leadership Alliance, has released a statement regarding the bill, saying there are "misleading claims."

SGLA Speaks Out

As for specifics regarding the SGLA's issue, the group has stated that those in favor of the bill have made false claims about the websites offering casino-style games under the dual-currency model, including consumer protection and responsible gambling standards. 

“Following today’s California Senate Public Safety Committee hearing, the Social Gaming Leadership Alliance (SGLA) is urging lawmakers to reject AB831, a rushed and sweeping bill that would ban legitimate online social games and criminalize an entire form of digital entertainment enjoyed by millions of Californians,” the statement from Tuesday, July 15 reads. “Online social games are mainstream digital entertainment that have been delivering free-to-play interactive board, card, and casino-style games to millions of Californians for more than a decade.”

“The SGLA urges lawmakers to carefully consider whether they want to support legislation built on misleading claims from perceived competitors who themselves fail to meet the standards they claim to champion,” said Executive Director Jeff Duncan. “The testimony claiming our industry lacks age verification is not only false – it’s hypocritical. San Manuel operates an online social casino with no age verification requirements whatsoever. Meanwhile, SGLA partner companies employ multi-layered identity verification systems.”

Also attending the hearing was David Jumper, the Chief Marketing Officer for ARB Interactive, the company behind Modo Casino and the recent purchaser of Publishers Clearing House. 

"... we operate with strong responsible play standards, including age verification, spending limits, identity checks, and self-exclusion tools. Contrary to the claims made by the sponsors of this bill, this is not an unregulated industry, and it’s not operating in the shadows. This is a mainstream entertainment supported by American jobs, American infrastructure, and most importantly, American investment," Jumper said. 

As for AB 831, the bill was introduced at the tail-end of a legislative session. There have been no formal studies or economic impact analyses. 

 “We heard the bill author admit substantial amendments are needed to prevent unintended consequences, but has failed to produce them,” Duncan continued. “Lawmakers are being asked to vote on legislation that even its author acknowledges is incomplete and inadequate. We urge California lawmakers to listen to the thousands of constituents that have contacted their offices and work with the industry to keep this established form of entertainment legal and properly regulated.”

Other Organizations Against AB 831

Along with the SGLA and the Social and Promotional Games Association (SPGA), there are other organizations against AB 831. These include the American Civil Liberties Union, which has expressed concern for how it could impact business outside the sweepstakes casino industry. 

Other organizations against the bill include:

• ACLU California Action
• American Transaction Processors Coalition
• Association of National Advertisers
• Californians United for a Responsible Budget
• Virtual Gaming World

The SGLA and SPGA have also stated that they're willing to work with lawmakers on a path to regulation, rather than a ban. The groups have also raised the issue of sales tax, which Virtual Gaming Worlds, the company behind sweepstakes casinos like Chumba Casino, Global Poker, and Luckyland Slots, has stated it'd be "happy" to pay. 

The Senate Appropriations Committee next meets on August 18. We'll see if the SGLPA, SPGA, and others manage to sway lawmakers between now and then.