The SGLA has criticized Governor Gavin Newsom’s signing of AB 831 into law, essentially banning online social games with sweepstakes promotions in California. The state is following in the footsteps of Montana and New Jersey, despite opposition from California tribal nations and other relevant groups.
That includes tribes like Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria. They argue that the legislation will limit economic opportunities available to tribes that don’t have the same backing and resources that the wealthier gaming tribes do.
The SGLA also cited research from Eilers & Krejcik that estimated AB 831 would immediately eliminate $1 billion from California’s annual economy, with the state reportedly losing out on at least $200-$300 million in taxes each year.
If Governor Newsom signs AB 831 into law, online social games with sweepstakes promotions will be banned in the state of California, taking along $1 billion in contributions to the state.
Californians must act TODAY. Tell Governor Newsom to VETO AB 831: https://t.co/EIxBJON0hH pic.twitter.com/C15gPFpOrz
— Social Gaming Leadership Alliance (SGLA) (@SGLeadership) October 10, 2025
“Voters, players who love online social games, California tribes, and online social games operators all made their position clear: they didn’t want a ban on this popular, safe form of entertainment,” said Jeff Duncan, Executive Director of SGLA.
“We hoped that Governor Newsom would see past the anti-competitive efforts of the powerful, well-funded tribes behind this bill and veto AB 831, but he chose the easy, short-sighted path and turned his back on choice, innovation and economic gains.”
Sweepstakes stance of Gavin Newsom criticized
As well as the direct impact on the economy and the tribes, the SGLA went on to argue that the bill itself was “poorly designed”, with “zero industry consultation and was backed by conflicted proponents”. The organization pointed to a nationwide poll with an oversized sample of California voters as proof that the people of the state don’t want the ban.
It cited that 85% of California voters agreed the state should modernize and update laws to regulate and tax online social gaming, which is not in line with the outright ban that has been passed. The SGLA stated that it would continue to promote “sensible regulatory frameworks” in line with voter demands, economic growth, and with a view of protecting consumer rights.
Featured image: Wikimedia Commons, licensed under CC BY-SA 2.0
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