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By a unanimous vote on Monday, the California Senate approved Assembly Bill 831, moving it one step closer to becoming law and putting the brakes on sweepstakes casinos.
The 36-0 vote moves the legislation that bans most sweepstakes casinos in California back to the Assembly, where it originated. The Senate amended the bill, which included adding provisions to allow companies like McDonald’s, Marriott, and Starbucks to offer promotional games to its customers.
If the Assembly passes the revised legislation – it approved the orginal bill on a 77-0 vote in May – AB 831 would go to Gov. Gavin Newsom, who could either sign it into law or veto it.
The clock is ticking, as the Assembly has a Friday deadline to pass legislation.
Protests against the bill
The legislation met with protests on Monday from four California tribes opposed to eliminating California sweepstakes casinos.
Former lawmaker Jeff Duncan, executive director of the Social Gaming Leadership Alliance, argued that AB 831 would further hurt California tribes already struggling financially.
“AB831 is a flawed and rushed bill that lacks broad tribal consensus. As Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria and Big Lagoon Rancheria have made clear, this bill would limit economic options available to tribes and worsen already fragile economic conditions. What California lawmakers should focus on instead is creating proper regulation that supports online social games, creates new revenue sources for the state and protects economic opportunities for all tribes.”
Conversely, the California Nations Indian Gaming Association supports the bill. Assemblymember Avelino Valencia, who authored the bill, said the Yuhaaviatam of San Manuel Nation and the Tribal Alliance of Sovereign Indian Nations also back the legislation.
The newly revised version of the bill includes a clause stating it “does 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.”
A sweeps exodus?
It appears that a number of sweepstakes casinos are leaving California ahead of the expected ban.
On Sept. 5, Sweepsy reported that Playtech, whose game titles include Chumba Casino, LuckyLand Slots, and Global Poker, was removing access to Golden State residents.
It joined Evolution, Pragmatic Play, and Skywind, which also removed their games in California.
An Aug. 28 lawsuit filed by the state in Los Angeles County Superior Court targets Sweepsteaks Ltd., which operates Stakes.us.
