California is seeing a heated argument about Assembly Bill 831 (AB 831), a new plan to outlaw online sweepstakes-style games in the state. Assemblymember Avelino Valencia introduced the bill, which has faced strong pushback from digital gaming supporters. The Social and Promotional Games Association (SPGA) has become one of the loudest voices against this proposal.
SPGA Pushes Back Against AB 831, Citing Legal Risks for Digital Promotions
In a forceful message to policymakers, the SPGA pushed lawmakers to turn down the bill. They called it too broad, hasty, and likely to harm the state’s economy. This group speaks for businesses that run promotional and social games. They claimed AB 831 would make many digital promotions and entertainment platforms illegal. These platforms have been running within the law for a long time.
The SPGA reports that lawmakers quickly changed the bill in late June without talking to interested parties or doing a thorough review. The group slammed the legislation for not defining important terms like “dual currency systems” and “cash equivalents.” They cautioned that these unclear rules might catch innocent reward programs and marketing efforts, including well-known loyalty schemes from big names such as Starbucks and Marriott.
The association also voiced concerns about how the bill would be enforced. They pointed out that it could punish not just game operators but also advertisers, payment processors, and software providers. As the bill is written now, people or companies thought to be “supporting” sweepstakes games might have to pay fines up to $25,000 and spend up to a year in jail.
Debate Over AB 831 Highlights Tension Between Traditional Gaming and Digital Platforms
SPGA leaders warned that AB 831 might hurt legal business activities by redefining gambling in a way which is too broad. They stressed that many of the platforms the bill targets already use strong safeguards to protect consumers. These include checking age and fighting fraud.
What is more, the group questioned if the law was really necessary, saying there is no clear proof that these games cause harm. They said the bill’s backers were pushing their own agenda, pointing out that some supporters of AB 831 have promoted similar games that do not have strong protections for players.
In their note, SPGA members cautioned that the bill would hurt California’s image as a place for innovation and business growth, while not helping consumers. They asked lawmakers to hold off on the bill to study it more and talk about it instead of rushing it through. As the plan moves through committee talks, the fight over AB 831 shows a bigger clash between old-school gaming interests and the fast-changing world of digital entertainment.