The Big Lagoon Rancheria has asked California’s Senate Appropriations Committee to “pause consideration of AB 831 to allow for meaningful tribal consultation and consideration of the bill’s impacts,” becoming the second tribe to raise concerns over the proposed ban on sweepstakes casinos in California.
In a letter dated Aug. 25 and signed by Tribal Chairperson Virgil Moorehead, the tribe urged lawmakers not to advance the measure without further dialogue.
The letter falls short of calling for a law legalizing sweepstakes casinos. Instead, Big Lagoon Rancheria bring concerns that the bill would threaten “tribal sovereignty and self-determination.” Moorehead points out that AB831 “does not have the unanimous support of California’s Indian tribes.”
Tribes say they were left out of talks
Moorehead points out that AB831 has changed significantly since it was first introduced in the California Senate in the early summer. Amendments have morphed the bill into a “broad and blanket prohibition of various types of online gaming,” Moorehead’s letter reads.
The bill had “advanced without adequate dialogue with many tribes, including ours, despite its direct implications for tribal sovereignty and economic development.”
The main areas of concern include:
- Lack of tribal consultation in advancing AB831.
- Impact on tribal sovereignty, limiting the right to pursue economic development.
- Economic harm to smaller and rural tribes that depend on limited revenue streams.
- Threats to essential services such as housing, healthcare, and food security.
- Need for inclusive legislative process that engages all tribes before action.
By stressing the need to “pause consideration,” the Big Lagoon Rancheria positioned its request as a call for consultation rather than outright objection.
There are many alternative solutions to the blanket prohibition embodied in AB 831 that could better serve the State, Indian tribes, and consumers. However, these alternatives have not been explored in any detailed or comprehensive way.
The move by the tribe builds on the position taken by the Kletsel Economic Development Authority (KEDA), which argued that AB 831 posed a particular threat to geographically isolated tribes that rely on digital partnerships to fund essential services.
Opposition to the bill continues to grow
At the Aug. 18 Senate Appropriations Committee hearing, five opponents spoke against the bill, while no proponents testified. Assemblymember Avelino Valencia, the bill’s sponsor, waived his presentation.
Among those testifying, KEDA chief executive Eric Wright told lawmakers that digital platforms are one of the few viable ways for remote tribes to sustain critical programs. Shane Levine, speaking on behalf of the Social Gaming Leadership Alliance, argued the state could generate between $200 million and $300 million annually by regulating and taxing sweepstakes casinos rather than prohibiting them.
The debate has also intersected with industry partnerships. Days before the hearing, VGW announced a partnership with KEDA, where the company will provide “free-to-play online social games platforms (including associated sweepstakes promotions) in California.”
“The SPGA agrees with Big Lagoon Rancheria Chairperson Moorehead that AB 831 is rushed and flawed legislation. It’s irresponsible for California lawmakers to jam through this broken bill over a growing chorus of complaints from tribes, consumers, and California companies.” — Social and Promotional Game Association (SPGA) statement to Sweepsy
Legislative status and next steps
On Friday, the Senate Appropriations Committee will once again take up AB831, inviting comment from members of that body. It’s expected the committee will also look at opinions shared by opponents and supporters of the bill.
The Big Lagoon Rancheria is asking the State Senate committee to have a measured, in-depth investigation into the ramifications such a ban would have both practically and economically.
Previously, the American Civil Liberties Union registered its opposition to AB831, citing concerns over a prohibition on sweepstakes that could ban many forms of contests and games consumers have become accustomed to. The Kletsel Dehe Wintun Nation is also opposed to the legislation.
Supporters of AB831, which is sponsored by Assemblyman Avelino Valencia, include the Yuhaaviatam of San Manuel Nation, a powerful entity that owns and operates the Yaamava Resort and Casino in Highland, as well as the Palms Casino Resort in Las Vegas.
