An Unexpected Partnership
Australian social gaming giant VGW just made a strategic move in California, one with major implications for the future of sweepstakes gaming in the state. On August 18, VGW announced a conditional partnership with the Kletsel Dehe Wintun Nation, a federally recognized tribe in Northern California, to co-launch a social casino platform.
The deal is structured through the tribe’s economic arm, KEDA (Kletsel Economic Development Authority), and will focus on free-to-play games that include sweepstakes promotions, which are legally operating under federal and state guidelines, for now.
VGW calls it “historic,” and not without reason. It’s less about flashy expansion, and more about building long-term partnerships that value community, fairness, and keeping the fun.
Why It Matters: The AB 831 Flashpoint
This deal isn’t just business, it’s political.
VGW’s partnership with the Kletsel Dehe Wintun Nation lands smack in the middle of a fight over AB 831, a bill that would ban sweepstakes-style games in California. Most of the big tribal gaming groups, like CNIGA and TASIN, support the bill, saying it protects players and licensed casinos.
But Kletsel isn’t buying it.
As a smaller, non-gaming tribe, they see digital gaming as one of the few ways to generate revenue and support their community. In a letter to lawmakers, KEDA CEO Eric Wright didn’t hold back:
“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.”
In other words, this bill threatens their shot at building real economic opportunity—something big gaming tribes have had for decades, but smaller ones like Kletsel haven’t.
VGW CEO Laurence Escalante echoed the sentiment, calling AB 831 a “rushed, flawed” bill pushed by parties with “clear vested interests.” He said the focus should be on smart, fair regulation, not blanket bans that hurt innovation and smaller voices.
With this move, VGW’s backing the overlooked tribes, and putting a big spotlight on California’s messy fight over digital gaming, tribal fairness, and what’s next for sweepstakes platforms.
What the Tribe Says: Economic Sovereignty at Stake
California tribes are split, and one voice is making it clear: AB 831 isn’t the kind of legislation that was built for everyone.
KEDA CEO Eric Wright took his message straight to the Senate Appropriations Committee:
“This bill threatens our inherent right to create legitimate revenue streams. Larger tribes already dominate traditional casino markets. Digital platforms are a rare chance for smaller tribes like ours to level the playing field.”
Essentially, Wright is saying: “We weren’t consulted, this isn’t fair, and the ones already winning will widen the gap if this passes.”
Behind the Scenes: Familiar Tensions
California’s tribal gaming scene has been through this before. Back in 2023, proposed sports betting measures, which were designed to benefit tribes, ended up being controversial. Some tribal groups strongly opposed them, fearing that any change might upset the balance of carefully negotiated gaming compacts they’d spent years securing.
Now VGW’s new partnership with KEDA is stirring those same questions again: Could digital sweepstakes-style gaming stand alongside established tribal casinos? Or will the more powerful gaming tribes continue to guard their advantage, closing the door on newer revenue models like this?
What’s Next?
AB 831 hasn’t passed yet, and its future is still up in the air. But this new alliance between VGW and KEDA could shake up the conversation.
For VGW, it’s not just politics, it’s a bet on socially responsible, community-backed digital gaming. For KEDA, it’s about having a seat at the table and building real impact without being bullied by bigger, land-rich casino tribes.
One thing’s clear: the sweepstakes gaming debate in California just got a whole lot messier, and a lot more interesting.
Blaise Luis
