Sweepstakes Operator VGW "Happy" to Pay Sales Tax in California

Virtual Gaming Worlds (VGW), the company behind notable sweepstakes casino brands like Chumba Casino, LuckyLand Slots, and Global Poker, is attempting to do what it can to influence California Assembly Bill 831, a bill that would ban sweepstakes casinos in the state. 

The company is open to ways in which sweepstakes casinos could be part of the regulated market. 

VGW Provides Comment on AB 831

A session for AB 831 was scheduled to be heard before the Senate Governmental Organization Committee at 9:00 a.m. local time this past Tuesday. 

Before it, VGW provided a perspective in the "Arguments in Opposition" section for the hearing. 

“Rather than an outright prohibition, VGW and the social online games industry are asking that you park this rushed, gut-and-amend legislation and hear our side of the story,” the quote from VGW reads. “We want to work collaboratively with the California Legislature on sensible legislation that creates a robust regulatory framework prioritizing consumer protection while simultaneously offering a new revenue stream for the state. The economic opportunity is significant. Based on industry projections by Eilers & Krejcik, California could generate annual revenue of $149 million through sale tax alone.

“Currently, there is no method for us to pay sales tax in California because ours is a digital product, but this is something we would be happy to do under an appropriate framework. We are also open to other potential sensible taxation frameworks and/or revenue stream to benefit the people of California.”

The Social Gaming Leadership Alliance, the Social and Promotional Games Association, and the American Transaction Processors Coalition were also part of the groups under the "opposition section."

Here's what the SGLA said: 

“AB 831 seeks to outlaw an entire category of digital promotions and entertainment, which have existed and operated legally for many years, using language so broad that its full impact is impossible to predict. The bill was amended at the last minute, without stakeholder input, without supporting data, and without clear evidence of harm. Before California creates new crimes, restricts speech, and disrupts legitimate businesses, the Legislature should take a more thoughtful and transparent approach and make this a 2-year bill. Disrupting an entire legal industry in less than two months without adequate debate, education, public outreach, and evidence supporting the proponent’s arguments seems extremely short-sighted and irresponsible.”

AB 831 has garnered ample support from tribal gaming organizations, as well as those affiliated with commercial gaming, responsible gaming, local government, and small businesses. 

AB 831 Update

As mentioned, a hearing was held Tuesday at 9:00 a.m. local time before the Senate Governmental Organization Committee. 

In that session, the bill was approved by the committee in a vote of 15-0. 

Now, it's headed to the Public Safety Committee for a vote on July 15. 

We'll see what happens, but thus far, California appears to be headed in the direction of Montana with SB 555, Connecticut with SB 1235, and New Jersey with  A5447 in terms of banning these platforms altogether.