Second California tribe speaks out against proposed sweepstakes ban

A tropical lagoon along California's Big Sur coastline
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A second small California tribe in the space of a little more than a week has emerged as an opponent of the state’s proposal to ban online sweepstakes gaming.

Big Lagoon Rancheria said on Monday that Assembly Bill 831, which has the backing of most tribes and tribal gaming entities in California, threatens the sovereignty and economic viability of smaller tribes that cannot sustain large gaming operations.

Big Lagoon Rancheria is a federally recognized tribe of Yurok and Tolowa Indians located in Humboldt County. As of the 2010 census, 17 members lived on site. The tribe has fought in federal court in the past for its right to house a casino on its lands, but it does not currently offer gaming.

The tribe sent a letter of opposition to the California Senate Appropriations Committee, which is set to vote on Aug. 29 on whether or not to advance AB 831 to the full Senate floor.

What about the little guys?

Tribe Chair Virgil Moorehead wrote that the “gut-and-amend” move made to the bill after it had already been approved by the Assembly means there has not been sufficient consultation with all tribes. Moorehead particularly emphasized that banning online sweepstakes would be bad for non-gaming tribes.

“AB 831 will eliminate digital business opportunities for various tribes by locking them out of emerging digital business sectors, without offsetting any offsetting benefits,” Moorehead wrote. “This will impact tribes that do not have the geographic benefit of being able to operate large gaming casinos.”

Big Lagoon also contended that the “many alternative solutions” to a full ban on sweepstakes operators, promoters and associated parties have not been explored in any comprehensive way. The Social and Promotional Games Association (SPGA), a frequent critic of states’ efforts to ban sweeps, called AB 831 rushed and flawed.

Small cracks appear

AB 831 is broadly supported by most of California’s 100+ federally regulated tribes and is co-sponsored by the Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA).

Last week, though, a tribe spoke out against the effort for the first time. In fact, the Kletsel Dehe Wintun Nation of the Cortina Rancheria tribe of around 270 enrolled members not only opposed the bill but went notably further by entering into a partnership with sweepstakes and social gaming operator VGW.

After passing unanimously in two Senate committees, AB 831 was referred to the Suspense File calendar, which allows Appropriations to expedite decisions on bills that have a notable fiscal impact on California. AB 831 is expected to get a vote on its fate on Friday, Aug. 29, either killing the bill or putting it on the Senate floor agenda.

The bill would need to be re-approved by the Assembly, given that it has been entirely overhauled since lawmakers approved it there. California’s legislature is scheduled to adjourn on Oct. 15.

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