Backroom Ban: California’s Gut-and-Amend Move Risks Jobs, Investment, and Consumer Choice

WASHINGTON D.C. (JUNE 23, 2025) — The Social and Promotional Games Association (SPGA) is deeply troubled by California lawmakers’ decision to attempt a backroom ban on promotional sweepstakes through a controversial “gut and amend” maneuver hours before a legislative deadline.

“This isn’t how sound policy gets made,” said a spokesperson for the SPGA. “A last-minute effort to outlaw legal digital games, without public debate, expert input, or economic analysis, sends a chilling message to entrepreneurs, innovators, and investors across the state.”

“California voters didn’t sign on for backroom deals dictated by powerful political interests. With the state facing wildfires, a housing crisis, and a full federal assault on Californians’ rights, it’s astounding that any lawmaker would make banning mobile games a priority.”

The bill, rushed through without stakeholder engagement, threatens to criminalize lawful social sweepstakes platforms. These games are free to play, widely used, and built with robust consumer safeguards like age-gating, geolocation, and anti-fraud protections.

Making matters worse, the legislation is so broadly written that it could outlaw sweepstakes promotions by companies like Marriott, Microsoft, and Starbucks, longstanding marketing tools that use chance-based giveaways to power popular rewards programs.

California has long stood at the forefront of technology and digital entertainment. But this bill undermines that legacy, ceding power to entrenched players at the expense of consumers, startups, and basic fairness.

We urge Governor Newsom and other leaders to reject this rushed and hypocritical approach, and instead pursue a transparent, fact-based dialogue about the future of legal digital innovation in California.