VGW has partnered with a California tribe as sweepstakes continue to face legislative pressure across the US.
The company confirmed a conditional partnership with the Kletsel Economic Development Authority (KEDA) to expand the availability of its social gaming platform across The Golden State.
The pair will operate free-to-play online social games platforms in California, which includes associated sweepstakes promotions.
Laurence Escalante, Founder and CEO of VGW, commented: “We are delighted to enter into this partnership with KEDA and look forward to working together to ensure economic opportunities well into the future.”
Opposition to California sweeps ban
Upon announcing the new partnership, KEDA and VGW united against AB 831, a bill that seeks to criminalise sweepstakes gaming in California.
Eric Wright, KEDA’s CEO, described the bill as threatening “our inherent right to create legitimate revenue streams”, in a letter to the California Senate Appropriations Committee.
He also accused larger gaming tribes that are in favour of the bill, such as the Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA), of restricting digital commerce opportunities for smaller tribes, such as the one he represents which has just 300 members.
“Eliminating lawful, regulated digital opportunities will deepen these disparities, reduce self‐sufficiency, and undermine the State’s commitment to economic justice for all tribes. We urge the Committee to reject AB 831 and work toward legislation that expands—not restricts—opportunity for every tribal nation,” Wright added.
The Social Gaming Leadership Alliance (SLGA), of which VGW is a founding member, also testified in opposition of the bill, warning that the bill risks eliminating nearly 1,200 jobs and $1bn in economic benefits to the state.
New Jersey sweeps ban passes into law
One state that has already achieved a ban on sweepstakes is New Jersey.
After lawmakers passed A5547 in July with strong majorities across the state’s Assembly and Senate, Gov. Phil Murphy signed the legislation into law earlier this week.
As a result, any sweepstakes offering that utilises dual-currency systems and mimics or simulates casino-style games or sports wagering is prohibited.
In doing so, the Garden State joins the likes of Montana and Connecticut in banning sweepstakes.
VGW and Escalante have long acknowledged the challenges facing sweeps across the US.
In June, the operator closed down its online sweepstakes offerings in New York, having previously shut down operations in Connecticut and Delaware following correspondence with authorities.
Despite this, Escalante remained defiant on VGW’s future as he successfully orchestrated a full takeover of the company earlier this year.
“We’ve operated in North America for more than a decade, creating not only great games, user experiences and entertainment but ensuring this is done safely, responsibly and at the highest level of standards – in line with our core value of ‘we do what’s right,” said Escalante.
“But 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.“
Following the successful passage of A5547, VGW confirmed that it has begun to ‘phase out’ its sweepstakes promotions in New Jersey. However, its gold coin play will remain.
If California’s lawmakers achieve the same success as New Jersey, it would mark another significant blow for VGW given California’s status as the most populous state in the US with almost 40 million residents.
September 15 will see SBC organise a groundbreaking charity football event in Lisbon. Make sure you get the chance to see some of the most legendary names in football by securing your ticket today at https://www.legendscharitygame.com/
