California has been going back and forth on how to handle sweepstakes casinos, but things just got serious.
This past Tuesday, Assembly Bill 831 got a green light from the Senate Public Safety Committee to specifically outlaw sweepstakes casinos. This means if it becomes law, operating those pseudo-casino games could land you in real trouble, so think fines up to $25,000 and even a year behind bars.
Assembly member Avelino Valencia, AB 831 sponsor, said in a statement:
“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.”
The Bill’s Journey So Far
What measures have led up to this point? On July 8th, AB 831 made its first step, passing through the Senate Governmental Organization committee with a 14-0 vote.
This got them to amend the bill, which includes protecting third-party operators like payment vendors, geolocation service providers, or even gaming content suppliers who unknowingly support a sweepstakes operation.
“I am accepting committee amendments that will shield potential entities who unknowingly support online sweepstakes from liability. The amendments will also protect individual users of online sweepstakes games,” Valencia said.
Then on Tuesday, July 15, the bill had a unanimous vote of 6-0 in the Public Safety Committee. You’d think there’d be a big debate over the bill’s language, especially with groups like the Association of National Advertisers warning it was too vague. But surprisingly, there wasn’t much back-and-forth during deliberations.
What’s Next for AB 831?
Next up, it’ll go to the Senate Appropriations Committee. So, if it makes it through this committee, the whole Senate gets to vote on it. But even if they pass it, it’s not done; it has to return to the Assembly for them to agree to the changes that were added.
For now, the Golden State has until September 12, when the legislative session will come to an end, to push this effort to a final bus stop, or else it’ll be carried over to next year.
Support and Opposition
You’ll find strong support for AB 831 from groups such as the California Nations Indian Gaming Association (CNIGA) and the San Manuel Band of Mission Indians. Their main point is that these sweepstakes casinos are directly hurting their tribal gaming operations and rights.
But not everyone’s on board, though. The Social Gaming Leadership Alliance (SGLA) and Social and Promotional Games Association (SPGA) are really pushing back against the bill, claiming it’s going to cost people their jobs.
However, the CNIGA totally disagrees. Their take? Since these companies aren’t paying taxes in the first place, losing those jobs won’t exactly be a huge economic blow to California.
SGLA Executive Director and former Congressman Jeff Duncan said:
“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.”
If California pulls through with this, they’ll be joining states like Connecticut, Montana, and Louisiana, which have already outlawed sweepstakes.
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