Verdict Delayed on California's AB831 As Opponents Speak Out

During the Senate Appropriations Committee hearing for California's anti-sweepstakes legislation AB831, which was introduced by Assemblyman Avelino Valencia, five opponents of the bill provided testimony.

At the hearing, no advocates of the bill were present, and Valencia didn't present. 

Before the hearing, Virtual Gaming Worlds, the company that oversees sweepstakes casinos like Chumba Casino, Global Poker, and LuckyLand Slots, and the Kletsel Dehe Wintun Nation of the Cortina Rancheria tribe formed a partnership. 

Both groups were at the hearing. 

Kletsel Economic Development Authority CEO Speaks Out

AB831 has received a lot of support, but not from Kletsel Dehe. 

“We respectfully oppose AB831,” said Kletsel Economic Development Authority CEO Eric Wright. “This bill lacks unanimous support among California tribes, has advanced without meaningful consultation with many of us, and threatens our inherent right to operate legitimate revenue streams to support our people.

“Digital platforms offer one of the few viable ways for geographically isolated tribes to fund essential services such as healthcare, education, housing, food security, and social programs,” he continued. 

“The need is urgent. … We urge the committee to reject AB831 and work towards legislation that expands, not restricts, opportunity for every nation.”

SGLA Speaks Out

Also at the hearing was Shane Levine, representing the Social Gaming Leadership Alliance. He and the SGLA are against AB831, citing potential economic concerns. 

“This bill would ban free-to-play entertainment enjoyed by millions of Californians, eliminate nearly 1,200 jobs, and cut off over a billion dollars in annual economic benefit to our state,” Levine said. 

“Instead of a prohibition of online sweepstakes, we should instead regulate and tax it, which could generate between $200-300 million a year in new revenue to the state of California, funding schools, healthcare, and infrastructure without raising taxes on families, at a time when the state could desperately use new funding streams, all while ensuring consumer protections are in place to create a safe gaming environment.”

Levine went even further, calling AB831 rushed and also saying it's “a cynical attempt by a few stakeholders to kill off any and all competition in this space.”

Levine echoed Wright's sentiments about finding a path forward in a collaborative way. 

Others who spoke out included VGW US General Manager Derek Brinkman and ARB Interactive General Counsel Brian Schroeder.

The Result of the Hearing

Following the hearing at the Senate Appropriations Committee, there was no final verdict. It was moved to the suspense file. This is done when legislation has potentially massive economic impacts. 

Now, another hearing will take place later in the session at which it'll declare whether the bill continues or holds it, which could put it on ice for about a year. 

We'll see what happens at the next meeting.