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The Sherwood Valley Band of Pomo Indians and Publishers Clearing House have released statements opposing a controversial California bill, AB-831, that would effectively ban online sweepstakes casinos in the state.
The developments come after two tribes pushed back on the bill last month, with Big Lagoon Rancheria calling it a “rushed and flawed legislation” that lawmakers are trying to “jam through … over a chorus of complaints from tribes, consumers, and California companies.”
Sherwood Valley tribe says bill kills economic diversity
In a letter to the Senate committee reviewing the bill, Sherwood Valley Band of Pomo Indians Tribal Secretary Buffey W. Bourassa wrote that the measure would hinder the economic diversity needed among smaller tribes.
“AB 831 cuts off new digital revenue streams and hands an advantage to wealthier tribes with powerful gaming interests,” Bourassa wrote.
The Sherwood Valley tribe argued that allowing digital sweepstakes casinos would help it and other tribes address pressing needs, including housing shortages, homelessness, economic insecurity, poverty and unemployment.
“Our community is struggling, and we need economic diversification now,” Bourassa wrote.
Publishers Clearing House warns bill threatens its business model
Publishers Clearing House, the company famous for awarding sweepstakes winners with oversized checks, also sent a letter to the Senate committee. The company, which is facing bankruptcy, argued that AB-831 will end marketing-focused sweepstakes contests for brands not involved in the online sweepstakes casino industry, such as McDonald’s and Pepsi.
The impact will be felt across the economy, the company warned, but especially among PCH employees.
“PCH supports American jobs, infrastructure, and investment, contributing hundreds of millions of dollars annually to California’s economy through marketing, advertising, and technology sectors,” CEO Owen O’Donoghue wrote.
“AB 831’s criminalization—not regulation—of our operations, promotions, and even indirect support…threatens to eliminate good-paying jobs and erase this economic impact.”
O’Donoghue added that the bill lacks foresight and could leave consumers at the mercy of illegal operators. “This bill drives out legitimate operators and leaves consumers at the mercy of dangerous, unregulated ones,” he wrote.
Senate committee revises bill to protect marketing sweepstakes
Earlier this week, the Senate committee reviewing the bill added revisions to California’s AB-831, including language that appears to address concerns raised by PCH. Specifically, a new paragraph was added clarifying that sweepstakes-style marketing promotions are still allowed:
“The bill would specify that these provisions do not make unlawful game promotions or sweepstakes conducted by for-profit commercial entities on a limited and occasional basis as an advertising and marketing tool that are incidental to substantial bona fide sales of consumer products or services and that are not intended to provide a vehicle for the establishment of ongoing gambling or gaming.”
