California Governor Gavin Newsom signed Assembly Bill 831 into law on Saturday, banning online sweepstakes casinos and the dual-currency system in the Golden State.
California Assembly Bill 831 Goes Into Effect Jan. 1
The California Senate facilitated the state’s sweepstakes ban when it amended AB 831 in June, revising provisions related to “sweepstakes” and ultimately transforming it into an anti-sweeps bill.
The Senate passed the bill on Sept. 8 with a vote of 36-0, then the State Assembly unanimously passed it with a vote of 63-0 on Sept 12. Regardless, the measure would have become law on Oct. 12 with or without Gov. Newsom’s signature.
This means a veto was the only hope for sweeps gaming in California. Gov. Newsom, however, opted to outlaw sweeps operators and casino-style games over the weekend.
The law goes into effect on Jan. 1, banning all sweepstakes platforms, including any “financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate.”
Violators Would Be Guilty Of A Misdemeanor
Violators would be guilty of a misdemeanor, punishable by a fine of up to $25,000 or up to a year in county jail, or both. By creating new crimes, the bill is also expected to impose a state-mandated local program.
According to the Legislative Counsel’s Digest, California’s existing law “prohibits specified unfair acts or practices undertaken or committed by any person in the operation of any contest or sweepstakes.”
This includes “using or offering for use any method intended to be used by a person interacting with an electronic video monitor to simulate gambling or play gambling-themed games in a business establishment that directly or indirectly implements the predetermination of sweepstakes cash, cash-equivalent prizes, or other prizes of value.”
AB 831 now specifies that “using or offering for use any method, including an internet website or an online application, in the manner described above is prohibited, and would make conforming changes.”
Online Sweepstakes Games Utilize The Dual-Currency System
In addition, the bill revises the definition of “gambling-themed game” to include examples such as “lottery games, bingo, sports wagering, or any game that mimics or simulates similar games, as specified.”
“Online sweepstakes game” is described as any game that “utilizes a dual-currency system of payment that allows a person to play or participate with direct consideration or indirect consideration, and for which the person playing or participating may become eligible for a prize, award, cash, or cash equivalents or a chance to win a prize, award, cash, or cash equivalents.”
Despite four gaming tribes and more than 20,000 Californians writing over 34,000 emails to Gov. Newsom opposing AB 831, California has now officially become the largest state to outlaw sweeps gaming.