Online sweepstakes sportsbook Thrillzz is now subject to legal action in the U.S. District Court for the Southern District of California for allegedly operating an illegal sports betting business in violation of the CA Penal Code. Presiding Judge Karen S. Crawford is hearing the case.
Thrillzz Allegedly Breached California Penal Code Section 337
Betting market analyst Daniel Wallach posted last Friday on X that the complaint aimed at Thrillzz was “Co-authored by 7 law firms,” which were represented by plaintiffs Jared Rahmani and Gurgen Galstyan.
According to the lawsuit, Thrillzz allegedly breached California Penal Code Section 337, which criminalizes the activities of operators that distribute or supply gambling offerings to patrons.
Section 337 has two specific sections that are relevant to Thrillzz’s allegations.
Per Wallach’s post, Section (a)(4) prohibits recording or registering any bet or wager upon the result of a trial, contest, or purported contest of skill, speed, endurance, or upon uncertain events.
Thrillzz Accepted Bets As A Sweepstakes Sportsbook
Thrillzz is accused of breaching this provision through “recording/accepting bets” through its “Gambling Websites and Sweepstakes Sportsbook contests” in the Sunshine State.
The second section that plaintiffs have cited is (a)(6), which prohibits offering or accepting any bet or wager on those same kinds of contests or events.
Per Adam Roarty of CasinoBeats, sweeps operators can be charged with a misdemeanor or a felony for conducting business in the state of California, “depending on circumstances and prior record.”
A misdemeanor carries penalties of up to one year in jail and/or a fine of up to $5,000. If charged as a felony, it can result in a prison term of up to three years.
Thrillzz has also exited Arizona after the Department of Gaming (ADG) issued a cease-and-desist letter to the company last month. The ADG accused Thrillzz of violating state gambling laws.
California Assembly Bill 831 On The Verge Of Becoming Law
In addition, this lawsuit comes in the wake of the California Senate passing Assembly Bill 831 on a vote of 36-0 and then advancing it with Assembly approval on Sept. 12 on a vote of 63-0.
Gov. Gavin Newsom has until Oct. 12 to approve or veto the 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 measure, however, will ban online sweepstakes casinos and social casinos.
A few weeks ago, 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.”
It would appear that California sweeps operators are expecting AB 831 to become law.