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A bill that would prohibit sweepstakes casinos in California, Assembly Bill 831, moved tantalizingly close to becoming law today when a committee unanimously approved amendments to it.
The Assembly Governmental Organization Committee voted 20-0 to approve amendments and forego debate on AB 831 on Thursday morning. The bill will now appear on the floor of the Assembly on Friday for debate and possibly a full vote.
AB 831 has already passed the Senate, and if it passes tomorrow on the final day of the California legislative session, it will be sent to Gov. Gavin Newsom for either a signature or a veto. So far, Newsom’s office has not declared its position on the sweepstakes ban, but not a single “no” vote has been recorded at the statehouse so far.
Bill has been altered a few times
Newsom has until the end of September to sign or veto the bill. The sweepstakes ban would not likely be in effect, however, until 2026.
If the sweepstakes casino ban, which also impacts “social casinos,” becomes law in California, operators will probably shut down before the effective date. That has happened in other states that have threatened or have passed sweepstakes casino bans.
Earlier this week, the California State Senate passed AB 831 by a 36-0 vote following a series of hearings and targeted amendments. The bill was altered in the Assembly in July as well, narrowing its scope. A Senate amendment stipulated that sweepstakes contests offered by retail companies would not be banned under the proposed law.
Tribes split on bill
Supporters of the ban say sweepstakes casino apps are nothing more than actual casino gaming under a “dual-currency” system. Consumers are permitted to use “coins” or “tokens” in social and sweepstakes casino products, as opposed to using real money. But most of the apps permit users to redeem the digital currency for gift cards, prizes, or cash.
That’s what upsets tribal nations that have gained exclusive rights to gaming through agreements with the state and federal government dating back decades.
A handful of opponents emerged in recent weeks. Four California tribes worried that AB 831 would restrict their gaming rights and sovereignty. The ACLU agrees.
So far though, lawmakers have chosen to support a ban on sweepstakes casino and social casino operators in this state with the sixth-largest economy in the world. California does not currently have any online legal commercial gaming products that are regulated: no online casinos or sports betting apps.
