California Tribe Seals Social Gaming Deal with VGW
The Kletsel Dehe Wintun Nation, a Native American tribe based in California, has expressed its opposition to California Assembly Bill 831 (AB 831). Through its economic development entity, the Kletsel Economic Development Authority (KEDA), the tribe argues that the bill threatens their inherent right to operate legitimate revenue streams, particularly digital platforms, which are crucial for geographically isolated tribes like theirs[1][2][3][5].
In a letter to California's Senate Appropriations Committee, KEDA CEO Eric Wright urges the Committee to reject AB 831 and work towards legislation that expands, not restricts, opportunities for every tribal nation[4]. Wright claims that eliminating lawful, regulated digital opportunities will deepen disparities, reduce self-sufficiency, and undermine the State's commitment to economic justice for all tribes[1].
The bill, which seeks to outlaw sweepstakes casinos, has gained support from many larger and well-established Native American gaming groups in California, such as the San Manuel Nation and the California Nations Indian Gaming Association (CNIGA). They argue this exclusivity must be honored to prevent unregulated sweepstakes operators from undermining tribal gaming integrity[1].
However, the Kletsel Dehe Wintun Nation, in partnership with VGW, a North American sweepstakes operator with over a decade of experience, sees things differently[3][5]. VGW, which operates with a core value of "we do what's right," aligns with KEDA’s view that digital commerce provides viable economic development avenues for smaller tribes outside traditional gaming hubs[3][5].
The partnership between VGW and the Kletsel Dehe Wintun Nation is described as historic. VGW, led by founder and CEO Laurence Escalante, sees this partnership as a way to engage with legislators and believes the bill's ban on online sweepstakes casinos could fail due to their combined advocacy[3][5].
AB 831, if passed, would disproportionately harm smaller, geographically isolated tribes like the Kletsel Dehe Wintun Nation that rely heavily on digital gaming opportunities to fund critical tribal services. These tribes typically cannot benefit from physical casino locations or tourism-based gaming, so AB 831’s restrictions limit their economic self-sufficiency and widen disparities between large, established tribes and smaller, less advantaged ones[2][3][5].
Wright asserts that geography has limited traditional economic development for tribes like KEDA, while large, well-established gaming tribes benefit from geographic advantages and decades of success[1]. Wright argues that it is self-serving for well-established gaming tribes to advocate for policies that restrict emerging digital commerce opportunities for smaller and less-advantaged tribes[1].
VGW takes corporate social responsibility seriously and sees digital platforms as a means to address urgent needs in tribal communities, such as healthcare, housing, education, food security, and social programs[3]. The company believes that these digital opportunities could help address these needs more effectively than traditional, geographically limited methods[3].
In a 2023 sports betting ballot push in the Golden State, state tribal interests united against measures, with some limited support from non-gaming tribes[6]. The current standoff between KEDA, VGW, and the supporters of AB 831 underscores the ongoing debate about the role of digital commerce in tribal economies and the balance between regulation and economic justice.
