SGLA and SPGA urge Senate to reject AB831, warning of sweeping legal risk to digital promotions
Industry groups cite vague language, lack of consultation and risk to household-name sweepstakes campaigns.
Key points:
– AB831 proposes to ban online games using “freemium plus sweepstakes” models
– SGLA and SPGA argue the bill is overbroad and could criminalise legal promotions from major brands
– Over 20,000 Californians have submitted letters opposing the measure
Two leading industry coalitions, the Social Gaming Leadership Alliance (SGLA) and the Social and Promotional Games Association (SPGA), have urged California legislators to reject Assembly Bill 831 (AB831), warning that the measure could outlaw legitimate sweepstakes-based promotions and digital entertainment products without sufficient legislative scrutiny.
The bill, introduced on 24 June through a “gut-and-amend” process, would redefine key elements of California’s gambling code to criminalise certain digital sweepstakes games.
It has drawn criticism for lacking clear definitions of critical terms such as “dual currency system,” “indirect consideration” and “cash equivalents.”
During a Senate Governmental Organisation Committee hearing on 2 July, SGLA Executive Director and former Congressman Jeff Duncan stated: “This bill isn’t about protecting players. It is about protecting incumbents from competition.”
Good to know: The SGLA was launched in May 2025 by stakeholders including VGW, Playstudios, Yellow Social Interactive and Nuvei
In a formal letter submitted to Assembly member Avelino Valencia, the SPGA described the bill as “too vague, too rushed, and too risky.”
The group claims the measure introduces criminal liability for platforms, vendors, payment providers and media outlets, with possible penalties of up to $25,000 in fines and one year in jail.
Gaming attorney Bill Gantz told the committee: “Social casino freemium games are legitimate entertainment services that have been available in California since 2012.”
He added that both proponents and opponents of the bill use similar digital currency mechanics.
According to the SPGA, AB831’s scope could unintentionally impact a wide range of digital promotions currently run by major brands.
All promotions meet AB831’s criteria for a prohibited “online sweepstakes game”, according to the SPGA’s side-by-side legal analysis.
Senator Rosilicie Ochoa Bogh remarked: “This is what happens when we don’t go through the proper process.”
Opposition has continued to mount. SGLA reported more than 20,000 calls, texts, and letters from California residents in the week leading up to the hearing.
Both groups are now calling for AB831 to be converted into a two-year bill to allow for proper consultation, clearer definitions, and a more transparent review.
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