The California State Senate passed Assemblymember Avelino Valencia’s AB 831 by a 36-0 vote. The legislation would outlaw sweepstakes casinos and sweeps promotions in the Golden State.
California Senate Amended Assembly Bill 831
AB 831 would 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.”
The bill was amended in the Senate to become an anti-sweeps bill.
It must now go back to the California State Assembly to get its changes approved. If the measure moves forward, the legislation will head to Gov. Gavin Newsom’s desk to be signed into law.
Lawmakers explained last week that AB 831 will not affect state lottery games, licensed cardrooms, or traditional sweepstakes promotions.
The revised version clarifies that the legislation will not criminalize sweepstakes promotions offered by retailers such as McDonald’s and Starbucks.
Revised Version Specifically Targets Sweepstakes Casinos
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 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.”
In addition, the bill’s wording received a couple of tweaks, such as “gambling-themed games” being changed to “gambling,” “casino-style table games” now reads “table games,” and the words “and willfully” were attached after “knowingly.”
The measure also states: “The bill would specify that these provisions do not make unlawful game promotions or sweepstakes conducted by for-profit commercial entities on a limited and occasional basis as an advertising and marketing tool that are incidental to substantial bona fide sales of consumer products or services and that are not intended to provide a vehicle for the establishment of ongoing gambling or gaming.”
Four California Tribes Oppose AB 831
More importantly, not all California tribes support 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 on Monday to protest the bill backed by the California Nations Indian Gaming Association.
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.