Two prominent industry coalitions, the Social Gaming Leadership Alliance (SGLA) and the Social and Promotional Games Association (SPGA), are urging California lawmakers to reconsider Assembly Bill 831 (AB831), arguing it poses serious threats to legitimate sweepstakes-based promotional games and freemium digital entertainment platforms.
Filed on June 24 through a “gut-and-amend” process, AB831 proposes sweeping revisions to California’s gambling laws that would categorize specific digital sweepstakes offerings as illegal. The bill has sparked backlash due to its ambiguous terminology, with critical terms like “dual currency system,” “indirect consideration,” and “cash equivalents” left undefined.
At a Senate Governmental Organization Committee hearing held on July 2, SGLA Executive Director and former Congressman Jeff Duncan voiced concerns that the bill serves entrenched business interests rather than consumers. “This bill isn’t about protecting players. It is about protecting incumbents from competition,” Duncan said.
Concerns of Vagueness and Broad Enforcement
In a formal letter addressed to Assemblymember Avelino Valencia, the SPGA denounced AB831 as “too vague, too rushed, and too risky.” The organization claims the legislation would impose criminal liability on not only gaming platforms but also their vendors, payment processors, and media partners—introducing potential penalties of up to $25,000 in fines and one year of imprisonment.
The SPGA also conducted a side-by-side legal analysis of AB831 and concluded that many existing digital promotional campaigns offered by large brands would fall under the bill’s prohibition of “online sweepstakes games.”
During the same Senate hearing, gaming attorney Bill Gantz emphasized the longstanding legality of these digital games, testifying that, “Social casino freemium games are legitimate entertainment services that have been available in California since 2012.” Gantz pointed out that the fundamental mechanics—such as digital currencies—are used by both the bill’s supporters and opponents alike.
Bill’s Process and Fallout Draw Criticism
The rushed nature of AB831’s introduction has drawn criticism not only from industry voices but from within the legislative body as well. Senator Rosilicie Ochoa Bogh highlighted the problematic process, stating, “This is what happens when we don’t go through the proper process.”
Critics emphasize the bill was crafted and submitted without a formal study, consultation with stakeholders, or public feedback. These procedural concerns were evident during the Senate hearing, where legislators requested amendments and further clarification, with several senators reserving their final stance until additional input could be considered.
Public and Industry Mobilize Against AB831
In the days leading up to the hearing, SGLA reported receiving over 20,000 messages—including calls, letters, and texts—from California residents expressing disapproval of AB831 and advocating for continued access to legal, free-to-play digital entertainment.
SGLA, which was established in May 2025 by companies including VGW, Playstudios, Yellow Social Interactive, and Nuvei, continues to argue that the bill unfairly targets its member companies while overlooking similar offerings from AB831’s most vocal supporters.
SGLA’s partners emphasize their strong consumer protection standards. These include strict age verification with geolocation and identity checks, anti-money laundering (AML) and Know Your Customer (KYC) compliance, responsible gameplay features like self-exclusion and spending limits, and adherence to major payment network standards.
Diverging Positions Within the Industry
While Light & Wonder has consistently opposed the social gaming and sweepstakes sector, frequently disseminating what SGLA calls “misleading or even outright false information,” San Manuel Yaamava’ Resort—a supporter of AB831 —runs its own freemium platform called PlayOnline, which employs the same digital currency mechanics as the platforms under scrutiny.
Gantz emphasized this contradiction during the hearing: “They are entirely legal and use the same model of selling gold coins that many other social casino platforms – including Light & Wonder and San Manuel Yaamava’ Resort’s PlayOnline – use.”
Call for Legislative Reassessment
Both SGLA and SPGA are urging lawmakers to transition AB831 into a two-year bill to allow adequate time for stakeholder engagement, clearer definitions, and comprehensive analysis. The groups believe a rushed legislative approach threatens not only consumer access to legal digital entertainment but also risks unintended harm to the state’s broader digital economy.
SGLA reaffirmed its willingness to collaborate with California’s leadership on crafting thoughtful, modern regulatory frameworks that ensure consumer protection, encourage innovation, and support the continued growth of the state’s technology-driven industries.
Source:
‘’SPGA Opposition Letter to CA Assemblymember Valencia on AB 831’’, thespga.org, July 08, 2025.
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