Social Gaming operator VGW announced a conditional partnership with the Kletsel Dehe Wintun Nation of the Cortina Rancheria tribe in California today (18 August).
The deal, signed with the Kletsel Economic Development Authority (KEDA), will see VGW work with the tribe’s economic arm to operate free-to-play online social games platforms, including sweepstakes promotions, in California.
The Australian-headquartered operator described the agreement as a historic partnership that underlines its long-term commitment to community engagement and responsible operations.
VGW to launch sweeps product with tribe
Laurence Escalante, founder and CEO of VGW, said: “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’.
“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. We take corporate social responsibility seriously and are thrilled to have found a tribal partner like KEDA.
“We also welcome KEDA’s opposition to AB 831. As we’ve previously said, our focus is on respectful engagement with legislators and calling for the establishment of modern, appropriate regulatory structures that can benefit players and states alike — not rushed, flawed legislation with unintended consequences being pushed by parties with clear vested interests like AB 831.”
The partnership comes as debate intensifies over AB 831, a bill that seeks to outlaw sweepstakes casinos.
State tribes have been leading the charge lobbying in favour of the proposed law, including via co-sponsors Yuhaaviatam of San Manuel Nation, the California Nations Indian Gaming Association (CNIGA), and the Tribal Alliance of Sovereign Indian Nations (TASIN).
A non-gaming tribe frustrated with the lobbying of gaming tribes may remind of the 2023 sports betting ballot push in the Golden State.
That saga saw state tribal interests unite against measures ostensibly designed to benefit them, although towards the end the Eagle1 Corp-designed measure saw some limited support from non-gaming tribes.
VGW said it has been engaging with stakeholders in opposition to the legislation and warning of potential impacts on suppliers and local Californian businesses.
Smaller tribe warns of deepening disparities
In a letter to California’s Senate Appropriations Committee, KEDA CEO Eric Wright stressed that digital platforms could help address urgent needs in tribal communities, including healthcare, housing, education, food security and social programmes.
Wright said: “This bill lacks unanimous support among California tribes, has advanced without meaningful consultation with many of us, and threatens our inherent right to create legitimate revenue streams to support our people.”
“For tribes like ours — far from high-traffic tourism corridors — geography has always limited traditional economic development. Large, well-established gaming tribes already benefit from these geographic advantages and decades of success. It is self-serving for them to advocate for policies that restrict emerging digital commerce opportunities for others, effectively holding smaller and less-advantaged tribes’ hostage to their location.”
“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.”
