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Now only a signature from Governor Gavin Newsom stands in the way of a ban on sweepstakes casinos becoming law in California.
On Friday during a flurry of lawmaking activity in Sacramento, the California assembly voted 63-0 to pass a bill known as Assembly Bill 831, that will ban sweepstakes casinos in the largest state in the country.
Under state law, Newsom has until the end of September to affix his signature to the bill to make it law. If he does, and he is expected to, the prohibition on sweepstakes casinos will be become law and go into effect most likely in early January.
The bill passed in both the senate and assembly without an opposing vote. The language in the bill outlines the punishments that can be made if a violation occurs.
So far, no sweepstakes casino operator has announced that it was suspending operations in the state. That could be a possibility before the law goes into effect, should Newsom sign it.
A modicum of opposition emerged in recent weeks against Assembly Bill 831. Four Indian tribes announced opposition, citing fears that a ban would infringe on sovereign native rights. The California branch of the American Civil Liberties Union was opposed because it believed a ban would impede economic opportunities in the state.
The senate tacked on amendments last week that protect sweepstakes games and contests that are not casino gaming related. Sweepstakes programs designed for retail promotions, for example, would not be prohibited.
California largest state to pass ban on sweepstakes casino apps
California becomes the sixth state to pass a bill that bans sweepstakes casinos. The others include Connecticut, Montana, New Jersey, Nevada, and New York. Some regulators and industry members worry that sweepstakes casino gaming could lure underage consumers and get them hooked on gambling.
Under the bill passed today in California, a sweepstakes casino is defined as any game that uses a “dual-currency” format. That means the consumer is playing the casino games with a non-cash item such as a token or coin, which only has value in the digital realm within the casino app. When the consumer is allowed to redeem those coins for prizes or cash, that would violate the ban.
In some cases these apps are called “social casinos,” but essentially those mobile applications operate the same way as sweepstakes casinos. California will have mechanisms in place to pursue companies that operate these products if the bill is signed by Newsom this month.
