VGW signs deal with Californian tribe as sweepstakes debate continues
Social gaming operator VGW has signed a conditional agreement with the Kletsel Dehe Wintun Nation of the Cortina Rancheria tribe in California.
The deal, made through the tribal economic development group, Kletsel Economic Development Authority, will see the pair operate joint social gaming platforms in the state, including sweepstakes promotions.
It comes at the same time as lawmakers in California consider AB 831, a bill that would ban all online social games with sweepstakes features. The bill has drawn opposition from industry groups and some tribes, who argue it could have significant effects on local economies and communities.
In a recent letter to the California Senate Appropriations Committee, Eric Wright, the Chief Executive of Kletsel Economic Development Authority, criticized the lack of broad tribal consultation over the bill.
Wright also warned that restricting online gaming opportunities could deepen disparities between larger gaming tribes with established casino revenues and smaller tribes located outside major tourism areas.
VGW Chief Executive Laurence Escalante also expressed concerns over AB 831, calling instead for structured regulation of social gaming in California.
The industry group Social Gaming Leadership Alliance has estimated that sweepstakes social casinos generate over $1 billion in combined annual economic benefits for the state.
However, opponents claim they offer operators a backdoor to profit from online casino gaming in territories where it is currently illegal.
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Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
