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The Kletsel Dehe Wintun Nation of the Cortina Rancheria tribe has entered into a partnership with VGW to operate a free-to-play online sweepstakes casino in California.
This decision between Kletsel Economic Development Authority (KEDA), the tribe’s financial arm, and VGW comes as California lawmakers consider a ban on sweepstakes casinos in a state that has yet to legalize online real-money casinos or sportsbooks.
KEDA’s CEO has publicly opposed legislation that would ban California sweepstakes casinos.
Most CA tribes support sweeps ban
Assembly Bill 831 is currently in the pipeline at the California State Legislature, where if it were to pass and become law, would prohibit sweepstakes casino apps and websites that use real money.
While KEDA opposes AB 831, most California tribes support the measure.
KEDA CEO Eric Wright mentioned his opposition to the bill while announcing the new partnership.
“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.”
“We urge the committee to reject AB 831 and work toward legislation that expands – not restricts – opportunity for every tribal nation.”
The majority of California tribes have collaborated to successfully stave off legal commercial gaming in the state.
In 2023, two ballot proposals failed that would have legalized sports betting in some form, mostly due to opposition to large gaming companies coming into California to compete against sovereign nations with gaming rights already in place.
VGW uses dual currency system
Sweepstakes casinos and social casinos like the ones VGW is known for operate under a dual currency system. Users wager tokens or coins that are free to play in casino games. However, most times the tokens or coins cost real money to acquire. In some cases, winnings can be redeemed for prizes.
As a result, most sweeps straddle the line between legal and illegal gaming.
VGW seeks to expand its business ventures into the largest state in the US, said VGW founder and CEO Laurence Escalante.
“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’.”
