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California's anti-sweepstakes legislation faces severe criticism from the SPGA

California's anti-sweepstakes legislation faces criticism, with the SPGA (Sweepstakes, Gaming, and Pari-Mutuel Association) labeling it not a solution but a problem.

California's anti-sweepstakes legislation is met with harsh criticism from the SPGA
California's anti-sweepstakes legislation is met with harsh criticism from the SPGA

California's anti-sweepstakes legislation faces severe criticism from the SPGA

The Social and Promotional Games Association (SPGA) has voiced concerns over AB 831, a bill currently targeting lawmakers and the California Attorney General. If passed and signed into law, AB 831 would outlaw sweepstakes in social casinos in California, a move that the SPGA believes could have detrimental effects on the state's local economy.

The SPGA argues that the idea of banning an entire category of digital promotions and entertainment is counterintuitive, particularly given California's reputation for innovation. The association urges lawmakers to reflect on their actions and ensure that California remains a leader, not a follower, in the digital age.

One of the primary concerns raised by the SPGA is the potential disruption that AB 831 could cause. If passed, everyday promotions, rewards apps, and marketing campaigns could face legal ramifications. The SPGA points out specific issues with the current language of AB 831, suggesting that it lacks clarity and could lead to unintended consequences.

The SPGA also criticizes AB 831 for relying on "vague language" and for not clarifying what a sweepstake game is. This ambiguity, according to the association, could lead to confusion and uncertainty for businesses operating in California.

The SPGA believes that the bill creates new crimes without addressing existing problems. The association points out that no specific evidence of harm from sweepstakes or social casinos has been presented by AB 831.

The SPGA has stated that the bill was amended at the last minute without stakeholder input, without supporting data, and without clear evidence of harm. This lack of transparency, the association argues, is contrary to good governance.

The SPGA continues to advocate for a public debate and education about the nature of social sweepstakes casinos. The association urges California to focus on getting the facts straight and to call for a public debate and education about the potential impacts of AB 831.

The SPGA argues that the sweepstakes model is based on legal precedent and is used by companies like Starbucks, Microsoft, and Marriott. The association believes that AB 831, if passed, could unnecessarily disrupt these legitimate businesses.

It's worth noting that the state's governor, Gavin Newsom, is against blanket bans on entire sectors, which may impact AB 831's future. However, California Attorney General Rob Bonta has argued that daily fantasy sports contests are a form of illegal gambling, which could complicate matters.

As AB 831 continues to make its way through the legislative process, the SPGA will continue to voice its concerns and advocate for a thoughtful and informed approach to digital gaming in California.

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