Bill 831 progress as California hones in on sweepstakes 

All eyes were on California yesterday, as legislation seeking to prohibit sweepstakes progressed to the Golden State’s Senate Appropriations Committee. 

Bill AB831 was unanimously passed by the Senate Committee on Public Safety, mounting pressure on the sweepstakes sector.  

Making the case against sweepstakes, San Bernardino County District Attorney Jason Anderson emphasised that he believes there is a threat from sweepstakes towards the younger generation. 

“In today’s digital age, increased access to online gambling and virtual betting, coupled with the lack of strong age verification safeguards, puts our youth at serious risk of developing crippling gambling addiction,” testified Anderson.

“Legal gaming operators such as the Yuhaaviatam of San Manuel Nation comply with the numerous laws and regulations that are designed to ensure consumer protections and confidence and confidence in the gaming market.”

Anderson also shot down suggestions from ACLU Action California, as the group lobbied against the legislation. The County District Attorney dismissed claims that the legislation is looking to take aim at players, stating that “it is not interested in that.”  

He continued: “We’re not seeking to penalise the player. Provisions in this bill are only intended to penalise the companies, often offshore, which are the source of this illegal gambling, who are operating these dual currency model games illegally in the state.”

The ACLU joined the SPGA and SBLA in leading the charge against the bill.

The SPGA said it “is proud to stand alongside the ACLU, the Association of National Advertisers and other partners in voicing concerns about AB 831.

“This diverse coalition, including civil liberties advocates, leading businesses and industry groups, reflects a shared belief that the bill, as written, could have unintended consequences for lawful promotional practices without offering clear consumer protections.” 

The SGLA has also underpinned its belief that the consequences of a far-reaching ban would have significant consequences. The group stated it would stifle innovation and undermine lawful business models, and reduce customer access.

Duane Morris Partner Bill Gantz also outlined the missed opportunity, stating that if California has “a fulsome process, you would learn that, rather than banning it, the state could collect at least $149 million of sales tax revenue a year. That’s just from this one type of game category California should regulate, not criminalise this measure in this established form of entertainment.”

He urged the committee to pause this fast track legislation, study the social casino space and then make a measured and worthwhile response.

Bill sponsor Assemblyman Avelino Valencia also provided further details on where the bill will focus its action. Valencia detailed plans to amend the bill to ensure “things like payment processors, financial institutions, geolocation providers, media affiliates and also individuals” wouldn’t feel the wrath of the bill.

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