VGW Forms Strategic Alliance with California Tribe to Advance Social Gaming
VGW Partners with California Tribe to Expand Social Gaming Presence
The landscape of social and sweepstakes gaming is undergoing significant changes. Recently, New Jersey has prohibited these types of games, adding to the regulatory pressures in the industry.
VGW, an Australian company specializing in social gaming platforms, has faced a wave of regulatory challenges and legislative scrutiny. Despite this, the company has forged a pioneering partnership with the Kletsel Dehe Wintun Nation of the Cortina Rancheria in California.
Collaboration with Kletsel Economic Development Authority Opens New Doors
Announced on August 18, this collaboration allows VGW to team up with the Kletsel Economic Development Authority (KEDA) to offer free-to-play social games and sweepstakes in California. This partnership marks a significant step forward for VGW in the U.S. market.
This alliance indicates that sweepstakes and social gaming continue to have a viable path forward, especially when aligned with established local partners. Traditionally, Native American tribes have been skeptical or opposed to the social gaming and sweepstakes models, often siding with mainstream gambling interests in criticizing these activities.
However, this new partnership may help companies like VGW gain stronger support and a more secure position amid growing scrutiny across various states.
In several regions, regulators have issued cease-and-desist orders to VGW and similar companies based on legislative bans. Working with KEDA offers VGW a legal foothold within California to continue its operations.
Laurence Escalante, VGW’s CEO and founder, emphasized their long-standing commitment to responsible gaming and high standards. He noted that the company has operated in North America for over ten years, focusing on creating engaging and safe gaming experiences.
Escalante also highlighted a strategic shift at VGW, aiming to build closer ties with local communities where the company operates.
Adapting Business Strategy Amid Regulatory Challenges
The partnership coincides with ongoing debates in California over potentially banning sweepstakes games altogether. VGW and KEDA seem confident that such measures will not prevail.
Escalante praised KEDA’s stance, particularly their opposition to legislation like AB 831, and expressed a desire to work collaborately with policymakers rather than confront them.
KEDA CEO Eric Wright sees important benefits arising from this partnership. He believes that digital platforms can significantly aid the tribe’s community development efforts, including improvements in healthcare, housing, and education.
Wright pointed out the challenges faced by tribes located far from prominent tourism areas, contrasting them with larger, established gaming tribes that benefit from advantageous locations and longstanding success. He criticized policies that restrict digital commerce opportunities for smaller tribes, arguing such restrictions disproportionately impact less-privileged communities based on geography.
