A bill that would outlaw sweepstakes casinos in California is being vetoed by Governor Gavin Newsom, according to the Social Gaming Leadership Alliance.
On the last day of its session, the California legislature passed AB 831. Before the bill becomes law without his signature, Newsom has until October 12 to take action.
According to Gambling Insider, the SGLA, which recently merged with the Social and Promotional Gaming Association, issued a warning that if Newsom signs the measure to shut down California’s sweepstakes casinos, the state would lose $1 billion in economic effect every year.
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Is a veto likely?
Although Newsom has not indicated his stance on the bill, the SGLA is probably doomed if the manner in which AB 831 easily passed both chambers of the California legislature is any guide.
Neither on the floor nor in committee did AB 831 garner a single nay vote in the legislature.
The California Nations Indian Gaming Association’s support for the bill was the primary factor in its resounding parliamentary backing. According to CNIGA, the sweepstakes casinos violated their exclusive right to provide casino gambling in the state of California as well as their tribal sovereignty.
Legislators frequently cited supporting tribes and upholding the promise of exclusive gaming rights as justifications for voting in favour of the bill.
Last chance to enter the California sweepstakes
In a letter on Tuesday, SGLA Executive Director Jeff Duncan urged Newsom to oppose the bill and assert California as a pioneer in “next-generation gaming technology.”
“The California Assembly’s decision to approve AB 831 is extremely disappointing,” Duncan stated. “This bill will immediately deprive the state’s economy of $1 billion, in addition to the fact that it would exacerbate economic disparities among California tribes, place California at the back of the line in terms of digital innovation in this area, and eliminate a popular form of entertainment for residents.”
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