California's anti-sweepstakes legislature faces strong criticism from the SPGA
The Social and Promotional Games Association (SPGA) has strongly criticized California Assembly Bill 831 (AB 831), a bill that aims to ban sweepstakes in California. The association argues that the bill's broad and vague language could unintentionally ban legal sweepstakes and promotional activities that are currently lawful marketing practices.
If passed and signed into law, AB 831 could outlaw everyday promotions, rewards apps, and marketing campaigns used by brands and businesses. This uncertainty threatens lawful marketing and promotional campaigns widely used in the industry.
The SPGA highlights several specific concerns:
- Unintended consequences for lawful promotions: The bill could outlaw legitimate sweepstakes promotions used by brands and businesses without providing clear consumer protections. This could disrupt the normal operations of technology companies, financial institutions, and media platforms connected to sweepstakes operations.
- Overbroad criminal liability: AB 831's language could unfairly impose criminal liability on individuals and companies involved in sweepstakes, even if they are not engaged in illegal gambling, resulting in harsher penalties than existing laws.
- Impractical requirements: The bill includes monitoring and enforcement provisions that opponents consider unworkable for businesses and technology platforms.
- Lack of clarity and standards: The bill lacks clear definitions and standards to distinguish between illegal gambling and legal promotional sweepstakes, creating confusion for companies trying to comply.
The SPGA has united with other organizations such as the American Civil Liberties Union (ACLU California Action), the Association of National Advertisers, the Social Gaming Leadership Alliance, and others in calling for lawmakers to reconsider and revise AB 831 to avoid harming legitimate sweepstakes and promotional programs while still addressing illegal gambling concerns.
The SPGA believes that the bill is detrimental to the state's local economy, particularly due to the proposed ban on social casinos. They argue that the idea of banning an entire category of digital promotions and entertainment is counterintuitive.
The SPGA has shared a statement with the media, expressing concern about the last-minute amendments to AB 831. They claim that lawmakers have not acted in good faith, introducing last-minute amendments without stakeholder input, supporting data, or clear evidence of harm.
The association urges a public debate and self-education about the facts of social sweepstakes casinos. They argue that no specific evidence of harm is provided by AB 831 to argue that sweepstakes and social casinos are detrimental.
California's lawmakers, including the California Attorney General, Rob Bonta, argue that daily fantasy sports contests are a form of illegal gambling. However, the SPGA reiterates that the sweepstakes model is based on legal precedent and used by companies like Starbucks, Microsoft, and Marriott.
As the debate continues, the SPGA calls on California to focus on getting the facts straight and ensuring that any new legislation includes clear, practical safeguards to protect lawful consumer promotions.
[1] ACLU California Action Statement on AB 831 [2] Association of National Advertisers Statement on AB 831 [3] Social Gaming Leadership Alliance Statement on AB 831 [4] SPGA Statement on AB 831
- The SPGA's concern about AB 831 extends to the potential ban on social casinos, asserting that such a move could disrupt the digital promotions and entertainment industry, placing technology companies, financial institutions, and media platforms involved in these operations at risk.
- The association argues against the broad language of AB 831, arguing that it could unintentionally outlaw gambling-related technology such as sweepstakes apps and marketing campaigns used by businesses, a move that could stifle innovation and hamper the industry's growth.
