Estonia-based sweepstakes giant, B2Services OÜ (AKA B Two Operations Limited) is starting to pull its social casinos out of California amidst the shifting legal landscape there.
Mega Bonanza, Hello Millions, PlayFame, and SpinBlitz have now all restricted access to players from the Golden State, while McLuck, Jackpota, and SportsMillions remain for now.
While Mega Bonanza was established by B2Services OÜ, we recently learned that a new parent company in the form of LuminaryPlay Operations took the platform over. It’s still unclear whether LuminaryPlay is associated with B2, but this could well be the case.
California’s AB831 Explains B2 Social Casino Withdrawal
The reason for the withdrawals is highly likely to be the anti-sweepstakes bill 831 currently being debated in the California legislature. It was introduced in June by Assemblymember Avelino Valencia, and, if successful, could impose criminal penalties on sweepstakes casino operators, suppliers, promoters and media affiliates.
Importantly, the bill has received the full backing of the California tribes who hold sway in CA. They control much of the state’s gambling via an exclusive compact system, and they view sweepstakes casinos as unauthorized competitors infringing on their domain.
AB831 has also received the backing of many companies and figureheads within the traditional gambling business; these groups also see sweepstakes as a threat which should be stamped out.
If we look at how similar bills have progressed in legislatures around the nation this year, many have passed (in Montana, Nevada, Connecticut, New York, New Jersey) with less support.
However, some have failed (in Arkansas, Maryland, Mississippi, Florida, and Illinois), so the sweepstakes industry and its customers will be hoping for a similar result in CA.
Sweeps trade groups such as the Social and Promotional Games Association (SPGA) and the Social Gaming Leadership Alliance (SGLA) have mobilized efforts like never before, with California widely regarded as the largest market for sweepstakes customers. Many of those customers – at least 22,000 at the last count – have used online platforms to contact their state representatives on the issue.
Virtual Gaming Worlds (VGW), owner of Chumba Casino, has even started paying a voluntary sales tax to show willingness and push for regulation rather than banishment of the sweeps format in CA.
Remaining B2 Social Casinos Likely to Exit California Soon
All that said, it seems B2 is fearing the worst and is already starting to withdraw its platforms from California. The exit of Mega Bonanza, Hello Millions, PlayFame, and SpinBlitz is likely aimed at reducing legal exposure ahead of the potential future enforcement of AB831, and it means Californian residents who were signed up there will no longer be able to use these platforms.
While McLuck, Jackpota, and SportsMillions (all belonging to B2) remain for now, CA users should redeem Sweeps Coins, as further exits remain a strong possibility. It’s worth noting that other casinos have halted marketing activities in CA without fully restricting signups.
We also recommend staying tuned to SweepsKings, where we’ll be bringing you updates on AB831 as things develop. The bill gets its 3rd legislative hearing on August 18 before the Senate Appropriations Committee, having already made decent progress. If it advances from there, it could head to the full Senate floor for a vote, potentially within weeks.
Author: Joseph Allen
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