Meeting Invoice 831, laws designed to prohibit sweepstakes casinos utilizing dual-currency fashions, has cleared one other vital step in California’s legislature. The Senate Committee on Public Security gave the measure unanimous approval in a 6-0 vote, sending it ahead to the Senate Appropriations Committee.
Sponsored by Assemblymember Avelino Valencia, AB 831 particularly targets sweepstakes platforms that supply currencies like Gold Cash and Sweeps Cash—fashions utilized by main operators corresponding to Chumba On line casino and LuckyLand Slots. In keeping with Valencia, these platforms “circumvent the need of the voters and sidestep the state’s gaming framework.”
Considerations from tribes and regulation enforcement over unregulated playing:
In the course of the listening to, Valencia affirmed that the invoice had been amended to deal with potential overreach. Adjustments included provisions shielding people and third-party service suppliers—corresponding to monetary establishments, associates, and geolocation companies—from legal responsibility in the event that they unknowingly assist sweepstakes platforms. He emphasised that AB 831 will not be meant to penalize customers. “That is solely going to concentrate on the entities which might be offering the sweepstakes varieties of platforms,” he advised the committee.
Valencia and different supporters argue that unregulated sweepstakes casinos current dangers to California’s tribal gaming system and public welfare. In testimony earlier than the Senate, Johnny Hernandez, vice chairman of the San Manuel Band of Mission Indians, acknowledged, “The twin-currency mannequin creates a harmful surroundings the place Californians, particularly younger and susceptible customers, are uncovered to real-money, gambling-like experiences with not one of the shopper protections.”
He additional clarified that whereas San Manuel gives its personal social on line casino platform, it’s free to play, lacks dual-currency mechanics, and doesn’t present money prizes.
San Bernardino County District Legal professional Jason Anderson additionally voiced assist for the invoice, citing youth vulnerability within the digital age. “Elevated entry to on-line playing and digital betting, coupled with the shortage of sturdy age verification safeguards, places our youth at severe threat of creating crippling playing dependancy,” Anderson testified.
Anderson addressed public considerations that the invoice might criminalize gamers, stating, “We’re not in search of to penalize the participant. Provisions on this invoice are solely meant to penalize the businesses, typically offshore, that are the supply of this unlawful playing.”
Supporters highlighted that California voters had granted Native American tribes unique gaming rights greater than 25 years in the past. In keeping with Valencia, tribal gaming has delivered over $25 billion to the state and created greater than 112,000 jobs. Permitting unregulated sweepstakes platforms to flourish, he argued, undermines that voter mandate.
Business opposition rallies broad coalition towards invoice:
Regardless of its momentum, AB 831 faces rising resistance. The Social and Promotional Video games Affiliation (SPGA), Social Gaming Management Alliance (SGLA), and different opponents argue the invoice’s broad language might endanger lawful advertising promotions and sweepstakes unrelated to playing.
Invoice Gantz, an legal professional representing the SGLA, challenged the premise that sweepstakes casinos are unlawful. “It’s similar to a number of different sweepstakes,” he mentioned. “Folks could make a purchase order to enter, however they’ll additionally enter free of charge.” Gantz additionally questioned the shortage of proof offered to show hurt, calling on lawmakers to review the sector moderately than rush to outlaw it. He added that regulating sweepstakes might generate $149 million yearly in gross sales tax income for California.
Opponents additionally criticized tribal teams for what they see as selective enforcement. “The testimony claiming our trade lacks age verification will not be solely false – it’s hypocritical,” the SGLA acknowledged, referencing San Manuel’s personal social on line casino, which they declare lacks age verification.
Backing from civil liberties and company entities has given the opposition additional credibility. The SPGA has aligned itself with the American Civil Liberties Union of California and the Affiliation of Nationwide Advertisers, which incorporates corporations like Google and NBCUniversal. Collectively, these organizations argue that the invoice might unintentionally disrupt authorized promotional exercise.
“The invoice, as written, might have unintended penalties for lawful promotional practices with out providing clear shopper protections,” an SPGA spokesperson mentioned.
In keeping with Sweepsy, within the weeks main as much as the Senate listening to, platforms corresponding to Chumba On line casino and Golden Hearts Video games inspired California gamers to contact lawmakers. One message from Chumba warned customers that AB 831 “would take away your freedom to play the video games you like.” By early July, almost 20,000 such actions had been recorded.
Golden Hearts Video games’ messaging went additional, calling the invoice “authorities overreach” and arguing it might push gamers towards unregulated, offshore platforms.
After clearing each the Senate Governmental Group Committee and the Public Security Committee, AB 831 will subsequent be reviewed by the Senate Appropriations Committee on August 18. If it progresses from there, the invoice will nonetheless want last approval from each legislative chambers and the signature of Governor Gavin Newsom to grow to be regulation.
With legislative classes operating by September, however payments allowed to hold into 2026 if obligatory, the controversy over California’s strategy to on-line sweepstakes casinos is way from over.
