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The Social Gaming Leadership Alliance (SGLA) has urged California Governor Gavin Newsom to veto the decision to pass Assembly Bill 831 (AB 831).
A vocal critic of AB 831, the SGLA has published a statement urging the senior figure to reconsider the decision that has effectively banned online social games connected to sweepstakes casinos in California.
SGLA urges Governor Newsom to rethink AB 831
Jeff Duncan, Executive Director of SGLA, said of AB 831’s passing, “This bill would worsen economic disparities among California tribes, put California to the back of the line in terms of digital innovation in this space, and take away a popular form of entertainment for residents.”
The SGLA remains in complete opposition to the bill, citing a potential loss of $1 billion to the Californian economy, as indicated by market research conducted in August 2025 by Eilers & Krejcik Gaming.

California’s AB 831 is misguided. ⁰
“It is outrageous that lawmakers are prioritizing a bill to ban online social games…this is not what I want my representatives to focus on.” – Stephanie M., Santa Cruz
(1/3) pic.twitter.com/6RrUjWwLJK
— Social Gaming Leadership Alliance (SGLA) (@SGLeadership) August 15, 2025

This would also, warned the SGLA, leave the 1,191 jobs in this industry in limbo, alongside the $208 million in household earnings, through ripple effects in the supply chain.
AB 831’s journey
We have extensively covered the journey of AB 831 from its inception to the numerous oppositions within the Sunshine State.
The bill had been approved in early 2025. It was then shelved to accommodate specific tweaks before being revived in June 2025 by Assembly member Avelino Valencia, with initial support from the California Nations Indian Gaming Association (CNIGA).
Following the fine-tuning of the bill, sweepstakes casinos and sweepstakes would face the incoming wrath of California lawmakers. The California Public Safety Committee approved the bill after the legislation was agreed upon, prompting the bill to move on to the next part of the approval process.
The SGLA remained in open opposition to the bill, stating that its passing could lead to criminal liability for businesses that would lose income.
Three California Tribes, the Sherwood Valley Rancheria of Pomo Indians, the Kletsel Dehe Wintun Nation, and the Big Lagoon Rancheria, would also add their opposition to AB 831.
Buffey W. Bourassa, Secretary of the Sherwood Valley Rancheria Tribe, wrote his own letter to the committee presiding over the bill.
Bourassa said they (Sherwood Valley), “respectfully oppose AB 831. This bill lacks the alleged unanimous support among California tribes, has advanced without meaningful consultation of broader tribal interests, and threatens our inherent right to create legitimate revenue streams to support our people.”
Bill nears closer to completion
Major players in the iGaming scene, such as Evolution and Pragmatic Play, began to pull out of the California market after the City of Los Angeles filed a civil enforcement action.

Breaking: Pragmatic Play is actually pulling its games from all sweepstakes casino operations in the US. It has become the first major provider to exit the controversial sweepstakes casino vertical amid regulatory pushback and lobbying from traditional gaming interests.
— Zak Akoo (@ThomasAkoo) September 2, 2025

Critics and observers were looking at the end of the line for the lucrative sweepstakes casino scene after AB 831 was further fine-tuned with the intent to ban online sweepstakes casinos.
The updated text read, “(a) It is unlawful for any person or entity to operate, conduct, or offer an online sweepstakes game in this state.” With the revisions complete, the bill moved on to the last stretch of Senate approval and then the pen of the Californian Governor Newsom.
With the bill now in the limelight, the SGLA has committed to working with Newsom to make its point heard.
Duncan concluded, “We implore Governor Newsom to veto this bill and instead open the door for online social games to support economically disadvantaged tribal nations and the state’s economy while positioning California as a leader in next-generation gaming technology.”
Featured image: Social Gaming Leadership Alliance / Gage Skidmore CC BY-SA 2.0
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Pamela Hackenburg, a former secretary and treasurer for Gregg Township in Pennsylvania, has been sentenced to prison time for the embezzlement of more than $500,000 from the local authority. 
The 56-year-old was the sole individual with access to the funds in the small rural settlement in Center County, PA, with the indiscretions taking place between January 2019 and May 2024, when the net began to close on her activity. 
Suspicions and irregularities led to external accountants blowing the whistle on the fraudulent activity. 
The resident of Millmont in Union County will serve between two and four years (which could be reduced to 18 months) in state prison, with a further two years on probation.
Pamela Hackenburg has been ordered to repay a total of just over $615,000 to Gregg Township.
Prosecutors outlined how she made a total of 3664 unauthorized withdrawals from the locality’s accounts, with the majority of them – 2700 – used to fund a gambling habit with DraftKings.
Over $322,000 was said to have been spent on the prominent betting platform, with a further $149,000 used on Venmo for various personal spending purposes, as well as lavish holiday spending and other non-essential needs.
Conversely, the U.S. gambling giant DraftKings has embarked on a month-long responsible gambling campaign for Responsible Gaming Education Month (RGEM), following a lawsuit over exploitative marketing tactics. 

NEW: Former rural Pa. township secretary sentenced to state prison for $532K theft of public dollarshttps://t.co/J6RsNiJaLu
— Spotlight PA (@SpotlightPA) September 16, 2025

Attorney says Hackenburg is a “delusional” individual
Beyond the illicit use of official money, Hackenburg is said to have left a trail of fake accounts, attempting to disguise her activity with fabricated financial reports and withholding key information from colleagues.
She even diverted money earmarked for municipal spending, such as road repairs, for her own needs.
Deputy Centre County district attorney Crystal Hundt told the court that Pamela Hackenburg was delusional, that her “activities and behavior are devoid of remorse for the abuse of her position and the harm she inflicted upon this community.”
The disgraced former office holder was charged with three counts, with her prison time accompanied by the 24 months probation for Identity Theft and Access Device Fraud.  
Image credit: BermixStudio/Unsplash
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The Arizona Department of Gaming (ADG) has sent communications to approved sportsbooks in the state warning them that offering prediction markets outside of Arizona could put their license at risk.
In the letter signed off by ADG director Jackie Johnson, operators were advised that offering event contracts or even partnering with such platforms to enable the activity “outside the framework of state gambling laws” could result in serious enforcement.
The ADG has taken this step to advise operators of potential violations after cease and desist letters were issued to prediction market providers Kalshi, Robinhood, and Crypto.com
As initially reported by Dustin Gouker, offering any prediction markets across the United States would not be looked upon favorably in the Grand Canyon State. That is the suggestion from the ADG directive, almost acting as a pre-emptive strike on operators. 
It comes soon after Underdog (a fledgling, registered fantasy sports operator in Arizona) opened with sports contracts in 16 U.S. states as a “tech provider” for Crypto.com 
Crucially, Arizona is not one of the 16 jurisdictions. 
Beyond this, no other regulated sportsbook provider or fantasy sports operator has launched a prediction market offering in the state, which is one of the largest state-regulated sectors across all of the U.S. 
FanDuel has entered into a partnership with CME Group for prediction services, but the arrangement will only apply to financial markets. 

News: Ohio Regulator Warns Sportsbooks About Offering Prediction Markets
Letter from the Ohio Casino Control Commission says that launching sports event contracts or working with prediction markets like Kalshi could put a sportsbook’s license in jeopardyhttps://t.co/TOVLxHwgWg
— Dustin Gouker (@DustinGouker) August 25, 2025

Duty to uphold the integrity of gaming in Arizona
The development is an interesting one, with Arizona seemingly following the lead of the Ohio Casino Control Commission, which warned about providing sports event contracts without licensing approval, but this fresh action goes further.
“Even if the licensee is not associated directly with the offering or sale of event contracts to persons in Arizona, its relationship with other persons or entities and conduct in other jurisdictions remains at issue,” stated Johnson in the letter.
He went on to stress that, “All of us have a responsibility to uphold the integrity of gaming in Arizona.
“Neither the citizens of this state nor your gaming operations are, in the long run, served by illegal, unlicensed and/or unregulated gambling.”
The ADG director is on the record for criticising the Commodity Futures Trading Commission (CFTC) for failing to take adequate action against prediction markets for offering sports event contracts.
Image credit: FlorianSchneider/Unsplash
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In Surrey, British Columbia, a man is alleged to have used money obtained from investors to fund a significant gambling spree.
According to the B.C. Securities Commission (BCSC) in Canada, David Lawrence Pazurik accrued CAD 200,460 ($145,600) from 14 investors as the sole operator behind Pazman Promotions, an entity said to be “in the business of purchasing and customizing branded merchandise for other businesses.” 
At present, none of the allegations against Pazurik have been proven, with the commission set to hold a hearing on the matter. 
According to the BCSC, the alleged fraudulent activity is said to have taken place between January 2021 and May 2022, with Pazurik using the proceeds for gambling and other personal spending.
A news release from the commission detailed how he burned through almost 75% of the funds raised, around $146,000, with some payments also made to associates of Pazurik. 
As a result, the BCSC alleges that he committed a fraud breach under the Province’s Securities Act.
BCSC to schedule a hearing on the alleged breach of Securities Act
The premise of the scheme was an investment in a profit-sharing arrangement, through support for sales contracts in Pazman Promotions’ business activity. Clients were advised they would be in line for a “reimbursement of their funds plus a specific amount of profits in a short period of time.”
The communication from the B.C. authority detailed that this did not materialize, with no returns paid to investors, as pledged.
Pazurik or his representatives have now been called to make a submission to the B.C. Securities Commission on November 18, before it schedules a hearing to rule on the situation.
As an independent provincial government body, the remit of the BCSC is to set the rules, provide oversight, and carry out enforcement on the investment market, to ensure it is “honest, fair, competitive and dynamic.”
Image credit: IJF
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