California Advances AB 831 to Ban Online Sweepstakes Casinos
LISTEN TO THIS ARTICLE:A bill that could ban sweepstakes casinos in California, AB831, passed unanimously in a second key committee and continues to advance.
The bill had previously been passed in the Senate Governmental Organization Committee. On Tuesday, July 15, it passed with a 6-0 vote in the Senate Committee on Public Safety.
Next up is the Senate Appropriations Committee.
AB 831 Aims to Close Loopholes in California Law
The bill’s sponsor, Assemblyman Avelino Valencia, told lawmakers that this bill fixes a loophole that enabled online sweepstakes casinos to operate in the state and get around their existing laws.
Valencia added key amendments to the bill, which included liability protections for individuals or entities that unknowingly support these platforms. He also added that players themselves wouldn’t be targeted.
Johnny Hernandez of the San Manuel Band of Mission Indians, who also supports the bill, added that unregulated online casinos could endanger players and tribal gaming, which is available in the state.
Hernandez emphasized the importance of tribal gaming, noting that it generates more than $25 billion in state contributions, and stated that sweepstakes casino platforms could hinder this revenue.
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While there are many in favor of the bill, that’s far from the case universally.
Bill Gantz, who represents the Social Gaming Leadership Alliance (SGLA), argued that sweepstakes platforms are legal and, like standard and traditional sweepstakes contests, no purchases are necessary to play.
He further argued that there is no evidence to suggest that sweepstakes casinos cause harm to players or the economy.
Other groups have joined the fight on behalf of the SGLA, including the ACLU, Association of National Advertisers, and Californians United for a Responsible Budget.
These groups are concerned that the bill's vague wording could have unintended consequences, such as affecting marketing practices.
Meanwhile, sweepstakes casinos like Chumba Casino and Golden Hearts Games have sent emails to players asking them to contact lawmakers.
Chumba Casino and Virtual Gaming Worlds set up a platform via Qurom, and Golden Hearts Games sent players an email template.
As of July 7, Chumba Casino and VGW received nearly 20,000 responses.
We’ll see how the bill fares in the Senate Appropriations Committee next.
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