Sweepstakes Casinos Could Get Boost from California’s AB 1052

California’s recently passed Assembly Bill 1052 aims to protect unclaimed digital assets, including cryptocurrency, and could lead to increased confidence in crypto sweepstakes casinos.

The bill passed in the Assembly with a 78-0 vote and now heads to the Senate for consideration.

AB 1052 addresses legitimizing digital asset payments and protecting unclaimed cryptocurrency from automatic liquidation.

AB 1052 basics and crypto legitimacy

The bill updates California’s financial regulations by explicitly incorporating digital assets into the state’s Unclaimed Property Law. Cryptocurrency held in custodial accounts will revert to the state if inactive for three years.

“Property held within a digital asset account escheats to the state three years after either of the following: (1) The date a written or electronic communication to the owner is returned undelivered … (2) The date of the last exercise of ownership interest by the owner in the digital asset account.”

Digital assets must be transferred to a qualified custodian designated by the state controller rather than being liquidated. This applies only to custodial accounts managed by exchanges or banks, not to self-hosted wallets where users control their own private keys.

The bill also legitimizes cryptocurrency as a form of payment.

“The use of a digital financial asset as a form of payment in a private transaction shall be deemed valid and legal consideration.”

Businesses and individuals in California can now accept digital financial assets in exchange for goods and services. This clarity could bolster confidence in cryptocurrency transactions, paving the way for broader adoption across various industries, including sweepstakes casinos.

Why this matters for sweepstakes casinos

The implications of AB 1052 extend positively to crypto casinos. By establishing clearer rules for digital asset custody, the bill is expected to boost trust in these platforms. It provides consumer protection for dormant assets and enhanced legal clarity for cryptocurrency transactions.

By reinforcing the legitimacy of crypto-based payments, the bill may lessen consumer uncertainty about digital asset security and regulatory risks. Players, especially those that are risk-averse, may feel more confident participating in sweepstakes casinos that offer crypto payouts.

In addition, clearer guidelines on how digital assets are handled may encourage more platforms that operate in the state to integrate cryptocurrency transactions.

Sweepstakes casinos offering crypto options in California

Several California sweepstakes casinos have already integrated cryptocurrency into their platforms, making them well-positioned to capitalize on the new legislation’s benefits.