California Governor Gavin Newsom may decide not to sign a bill that will outlaw sweepstakes casinos due to his aspirations to become the next president, says the Indian Gaming Association (IGA).
California Gov. Gavin Newsom Wants To Avoid Alienating Young Voters
Victor Rocha, conference chairman for the IGA, said Newsom does not want to alienate young voters who could be the key in helping him win his 2028 presidential campaign for the White House.
According to Adam Roarty of CasinoBeats, Rocha said while speaking on the New Normal webinar that “[Newsome] wants to be president, so he doesn’t want to [anger] the 18-35 demographic.”
If Gov. Newsom decides not to sign the measure, Assembly Bill 831 will become law automatically. This means a veto is the only hope for sweeps gaming in the Golden State.
AB 831 passed unanimously in the California Senate on a vote of 36-0 and then passed with Assembly approval on Sept. 12 on a vote of 63-0.
Gov. Newsom has until Oct. 12 to approve or veto the bill.
SGLA Urging Gov. Newsom To Veto Assembly Bill 831
Last week, the Social Gaming Leadership Alliance (SGLA) reached out to Gov. Newsom’s office to ensure a veto of the “gut and amend” anti-sweepstakes bill.
“It is incredibly disappointing that the California Assembly decided to pass AB 831. Beyond the fact that this bill would worsen economic disparities among California tribes, put California to the back of the line in terms of digital innovation in this space, and take away a popular form of entertainment for residents, it will immediately strip $1 billion out of the state’s economy,” said Jeff Duncan, Executive Director of SGLA.
“We implore Governor Newsom to veto this bill and instead open the door for online social games to support economically disadvantaged tribal nations and the state’s economy while positioning California as a leader in next-generation gaming technology.”
AB 831 Was Amended Into An Anti-Sweepstakes Bill
AB 831 was amended into an anti-sweeps bill in the California State Senate, clarifying that the proposal will not affect state lottery games, licensed cardrooms, or traditional sweepstakes promotions.
The updated language in AB 831 states: “(a) It is unlawful for any person or entity to operate, conduct, or offer an online sweepstakes game in this state.”
It 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.”
California is the largest sweepstakes market in the United States.