California’s anti-sweepstakes casino legislation now only needs approval from Governor Gavin Newsom before it becomes law.
Last Friday, 12 September, the last day of the state’s legislative session, the Assembly passed AB 831 by a vote of 63-0.
The bill outlines that it is a misdemeanour for “any person, entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider or media affiliate to knowingly support directly or indirectly the operation, conduct or promotion of an online sweepstakes game within the state”.
Introduced by Assembly member Avelino Valencia, the bill initially addressed a tribal gaming before being amended to include a ban on sweepstakes casinos when the bill was in the Senate.
It progressed through several committees and the Senate floor with significant support.
The bill states that operators violating the pending law on sweepstakes casinos will be subject to a fine ranging from $1,000 to $25,000, or possibly a one-year prison sentence in a county jail.
Governor Newsom can now sign the bill into law, or the bill can be passed without his signature, while the legislation could still be vetoed.
California is not the first state to take action against the vertical this year, with Connecticut, Montana and New Jersey all outlawing sweepstakes casinos.
In New York, Governor Kathy Hochul has still not yet signed the Empire State’s own anti-sweepstakes bill, despite advancing both the Senate and the Assembly in June.
Louisiana Governor Jeff Landry also opted against signing anti-sweepstake legislation into law in the Bayou State.
However, California is now the largest jurisdiction by some distance to take such measures, and it does so with support from the state’s tribal gaming operators, including the California Nations Indian Gaming Association.
Issuing a statement of support, the organisation said: “Tribal gaming exclusivity, as granted by the voters of California, must be honoured.
“Allowing unregulated and predatory sweepstakes operators to bypass these regulations undermines that trust and the integrity of California’s gaming policies.”
There has been resistance from sweepstakes operators, many of which have argued the bill criminalises a legal form of entertainment and are pushing for a regulated framework that involves a tax plan instead.
Jeff Duncan, executive director of sweepstakes trade body the Social Gaming Leadership Alliance, claimed (prior to the bill’s passage to Governor Newsom): “It is incredibly disappointing that the California Assembly decided to pass AB 831.
“Beyond the fact that this bill would worsen economic disparities among California tribes, put California to the back of the line in terms of digital innovation in this space, and take away a popular form of entertainment for residents, it will immediately strip $1bnout of the state’s economy.
“We implore Governor Newsom to veto this bill and instead open the door for online social games to support economically disadvantaged tribal nations and the state’s economy while positioning California as a leader in next-generation gaming technology.”
The post California’s anti-sweepstakes bill on verge of being signed into law first appeared on EGR Intel.
AB 831 advances through state legislature and now only requires the approval of Governor Gavin Newsom before being ushered into law
The post California’s anti-sweepstakes bill on verge of being signed into law first appeared on EGR Intel.