Following the publication of a letter to lawmakers expressing opposition to a bill that threatens to restrict the operation of casino-style, sweepstakes-based online games in California, the Kletsel Dehe Wintun Nation of the Cortina Rancheria has formed a new partnership that gives the organization an outlet for that type of gaming.
VGW, a prominent operator of social and sweepstakes casino games, has announced its collaboration with the tribe’s economic arm, the Kletsel Economic Development Authority (KEDA).
The collaboration’s announcement comes on the same day that the bill, Assembly Bill 831, is receiving further consideration in the California Senate. The partnership also represents an unprecedented union of such organizations in the state.
VGW, Kletsel Dehe Wintun Nation combine forces for online gaming
A Monday press release from VGW highlights the primary purpose of the partnership with KEDA. The release states that the organizations are “partnering to operate free-to-play online social games platforms (including associated sweepstakes promotions) in California.”
The statement from VGW goes on to highlight that the “partnership for VGW forms part of the company’s commitment to both support communities, and engage with stakeholders, where it operates, which has been an increasing focus in recent years as the company has scaled.”
The KEDA is a promotional entity, representing the business interests of the Kletsel Dehe Wintun Nation of the Cortina Rancheria tribe, a federally recognized Indian tribe. VGW operates the popular sweepstakes gaming sites Chumba Casino, LuckyLand Slots, and Global Poker.
VGW’s release also addresses the California Senate’s deliberations on AB831. The KEDA has been a lone tribal voice opposing the legislation to date.
READ MORE: Some Sweeps Casinos Are Adjusting Their Marketing In California As AB831 Progresses
KEDA expresses opposition to sweepstakes restrictions in California
VGW’s announcement of its partnership with KEDA comes right on the heels of KEDA’s distribution of a letter to California senators opposing AB831’s potential passage.
In that letter, KEDA expressed that AB831 “lacks unanimous support among California tribes, has advanced without meaningful consultation with many of us, and threatens our inherent right to create legitimate revenue streams to support our people.”
In Monday’s release, VGW CEO Laurence Escalante praised that position, stating that, “we also welcome KEDA’s opposition to AB 831. As we’ve previously said, our focus is on respectful engagement with legislators and calling for the establishment of modern, appropriate regulatory structures that can benefit players and states alike – not rushed, flawed legislation with unintended consequences being pushed by parties with clear vested interests like AB 831.”
As deliberation on AB831 moves forward, this partnership could represent a new direction for sweepstakes gaming in the US. Formal partnerships between tribal organizations and sweepstakes operators in any US state were unprecedented until this announcement. In California, specifically, forming a coalition of tribes opposed to AB831 may be the only way to beat it.
Increased scrutiny on sweepstakes casino sites from state-level legislators and regulators has altered the discourse around such gaming, and VGW is responding to that evolution. As Escalante explained:
“We acknowledge that as our business and innovative industry has grown, external interest in what we do has increased, including how we support and engage in the communities where we operate. We take corporate social responsibility seriously and are thrilled to have found a tribal partner like KDEDA,” Escalante said.
The progression, or lack thereof, of AB831 will have a dramatic effect on the relationship between KEDA and VGW going forward. At this time, the partnership could mean a larger presence in California for both parties.
