July Update – AB831 unanimously passed the Public Safety Committee vote and is now scheduled for a July 15 hearing in the Senate Public Safety Committee.
The wording for California’s new anti-sweepstakes bill has been made public, following rumors during the last week that a proposal was in the works.
As forecast by industry insiders, the text was added as an amendment to an existing bill (AB831), with the new sponsor emerging as Assemblymember Avelino Valencia.
The original version of AB831 had nothing to do with sweepstakes casinos – rather it was concerned with technical changes to tribal-state gaming.
Critics have called this tactic a ‘gut and amend’, with the original text making way for very specific anti-sweepstakes wording. In fact, similar bills in other states have tended not to use the phrase ‘sweepstakes’, but AB831 uses the word around 20 times.
California AB831 Targets Online Sweepstakes Casinos and Supply Chain
One important excerpt from the new version of the bill reads:
“This bill would make it unlawful for any person or entity to operate, conduct, offer, or promote an online sweepstakes game, as defined, in this state. The bill would make it unlawful for any person, entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within this state.”
As we can see, the proposal targets the whole Cali sweepstakes casino supply chain, not just the operators, and offences would be made misdemeanors, punishable by a fine of up to $25,000 and imprisonment in the county jail.
“We cannot look the other way while these platforms exploit legal grey areas,” said bill sponsor Assemblymember Valencia. “These operations undermine the voter-approved framework that affirms Tribal governments’ sovereign right to conduct gaming in California.”
Tribal Nations Unanimously Support California Sweepstakes Legislation
Indeed it’s the tribes that have thrown their full support behind this bill. Victor Rocha, Conference Chair of the Indian Gaming Association, has long been one of the most vocal opponents of sweepstakes gaming, and the latest episode of his podcast, The New Normal, was devoted to the sweepstakes issue.
During the roundtable, James Siva, Chairman of the California Nations Indian Gaming Association, mentioned how it was easy to get the various tribes united on this issue. He went on to say he believed the bill could pass during the current session of the California legislature, which ends on September 12 this year.
AB831 Has Already Reached the Senate
The latest update for AB831 shows it’s now with the Senate, having passed the Assembly in its original form in May, and this points to why the ‘gut and amend’ tactic is controversial: while the bill is now entirely different, it retains its original number and progress.
The new language targeting sweepstakes casinos was only added on June 23, meaning it could advance through the Senate without the full scrutiny a brand-new proposal would face. If passed in the Senate, it would return to the Assembly for a concurrence vote, but much of the typical legislative oversight has effectively been bypassed.
The Sweepstakes Industry Takes a Stance
Both sweepstakes casino trade groups have commented on the proposal which threatens the whole sweeps market in the Golden State, the most populous state in the US.
The Social and Promotional Games Association (SPGA) said it was “deeply troubled”, while Jeff Duncan, Executive Director of the Social Gaming Leadership Alliance (SGLA), argued the bill would “push players away from games that maintain comprehensive consumer protections and responsible gameplay tools towards dangerous, black-market operators who have no interest in protecting Californians.”
Cali’s New Anti-Sweepstakes Bill Could Change the Whole iGaming Landscape
The sweepstakes industry is still growing year on year, highlighting strong consumer demand for online casino-style games with real money redemptions. But opposition is gradually mounting too, particularly from tribal nations and traditional gambling interest groups keen to protect their market dominance.
With similar bills having already been signed into law in Montana, Connecticut, and Nevada this year, and another on the verge of doing the same in New York, all stakeholders will be keeping a close eye on the progress of AB831.
It could dramatically affect the future of sweepstakes gaming in general, and that of DFS and fantasy sports in the Golden State.
Author: Joseph Allen
Updated:
