The California State Assembly voted on Friday to pass Assemblymember Avelino Valencia’s AB 831 by a unanimous, 63-0 vote, sending the bill to Governor Gavin Newsom for approval. The bill can either be signed into law or become law without his signature. Newsom may also decide to veto the legislation.
California Assembly Bill 831 Prohibits Sweepstakes Casinos
AB 831 will outlaw sweepstakes casinos and sweeps promotions in the Golden State.
The measure will also make it illegal “for any person, entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within the state.”
AB 831 was amended into an anti-sweeps bill in the California State Senate, clarifying that the measure will not affect state lottery games, licensed cardrooms, or traditional sweepstakes promotions.
The updated language states: “(a) It is unlawful for any person or entity to operate, conduct, or offer an online sweepstakes game in this state.”
AB 831 also reads: “(b) It is unlawful for any entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly and willfully support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within this state.”
Four Tribes Oppose Anti-Sweepstakes Bill
California would potentially become the largest jurisdiction to ban sweeps play. Lawmakers would also do so with full support from the state’s casino-operating Native American tribes.
“Tribal gaming exclusivity, as granted by the voters of California, must be honored,” the California Nations Indian Gaming Association has said in a statement in support of the bill.
“Allowing unregulated and predatory sweepstakes operators to bypass these regulations undermines that trust and the integrity of California’s gaming policies.”
However, there are multiple California tribes still opposing AB 831.
Members of Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria gathered outside the Capitol in Sacramento last Monday to protest the bill.
If passed, AB 831 would limit economic opportunities available to less wealthy tribes by banning online casino-style games that use sweepstakes promotions. The measure would also eliminate more than $1 billion of existing economic activity generated by the industry in California.
The four tribes previously sent letters to state legislators, including President Pro Tempore Senator Mike McGuire and Senate Appropriations Committee Chair Senator Anna Caballero, voicing their opposition against AB 831.
Newsome Could Veto Bill
While several state legislatures have passed similar bans, not all have become law.
New York Governor Kathy Hochul has not signed Senate Bill 5935. Before the measure’s passage, Attorney General Letitia James sent 26 cease-and-desist orders to sweepstakes operators.
Louisiana Governor Jeff Landry also vetoed his state’s bill, explaining the legislation was not necessary for the state gaming regulator to enforce the law.
The Louisiana Gaming Control Board then sent 40 cease-and-desist letters to unregulated operators, including sweepstakes sites.
To protect less fortunate tribes, Newsome may decide to veto AB 831.