A bill proposing to ban sweepstakes casinos in California was passed in the Senate Public Safety Committee on Tuesday.
Assembly Bill 831 was amended last month to include a ban on sweepstakes in the state. The bill makes operating casino-style games through sweepstakes a misdemeanor, punishable by up to $25,000 in fines and 1 year in county jail.
In addition, it also targets sites that actively promote or support the platforms, which include payment processors, geolocation services, platform providers, gaming content suppliers, and affiliate marketers.
The bill was passed unanimously in a 6-0 vote on Tuesday, following a 14-0 approval in the Senate Governmental Organization committee, which amended the bill in June.
The legislation will now move to the Senate Appropriations Committee. If approved there, it will go to a full vote in the Senate before moving back to the Assembly, which must vote on the amendments.
Sweepstakes Advocate Groups Speak Out
In a hearing on the bill last week, the Social Gaming Leadership Alliance (SGLA) urged lawmakers to block the legislation.
SGLA Executive Director and former Congressman Jeff Duncan stated, “This rushed proposal not only cuts Californians off from the free-to-play games they enjoy and a potential revenue stream for the state, but it also threatens to criminalize the businesses that drive California’s economy.”
“We urge California lawmakers to take California businesses out of the crosshairs by making AB831 a two-year bill, allowing for a more thoughtful, consultative and collaborative process.”
Sweepstakes Offering California Players Access To Casino Games
Online casinos have not been officially legalized in California, but platforms operating using a dual-currency model have been able to offer casino-style games to users.
Unregulated online casinos are estimated to have generated over $4 billion in revenue in California last year.
Assemblymember Avelino Valencia, who authored the bill, stated, “We cannot look the other way while these platforms exploit legal grey areas.”
“These operations undermine the voter-approved framework that affirms Tribal governments’ sovereign right to conduct gaming in California. AB 831 strengthens that framework and ensures gaming in California remains fair and accountable.”
Tribal Groups Support AB831
he bill is co-sponsored by the Yuhaaviatam of San Manuel Nation, the California Nations Indian Gaming Association (CNIGA), and the Tribal Alliance of Sovereign Indian Nations (TASIN).
The tribal groups see the legislation as essential to protect their exclusive rights to offer gaming in California.
Yuhaaviatam Tribal Council of San Manuel Chairwoman Lynn Valbuena commented, “For over 25 years, Tribal governments like Yuhaaviatam of San Manuel Nation, have upheld the will of California voters by operating gaming with integrity.”
“That commitment has allowed us to reinvest in our communities, boost local economies, and support essential public services on reservations and in partnerships across the state.”
The bill is likely to be reviewed by the Senate Appropriations Committee next month.
