California’s AB 831 has continued to move forward, making the sweepstakes ban it envisions a realistic outcome, despite the industry’s protests. The measure is now heading to the State Assembly, threatening the social casino sector.
AB 831 Advances Again
AB 831 seeks to end the controversial sweepstakes gaming sector, outlawing dual-currency gaming platforms for good. Sweepstakes operators, for context, have long avoided regulation by leveraging legal wording to avoid being classified as gambling. While some have promoted the idea of regulating sweepstakes as a viable gaming vertical, regulators across the USA have mostly focused on eliminating sweeps operators.
California’s AB 831 is one of multiple measures across the US, seeking to prohibit sweepstakes. While most bills have met mixed support, California’s measure has continued to gain traction, to the sweepstakes industry’s growing concern.
After passing the Senate earlier this week, the bill has now received unanimous support from the Assembly Governmental Organization (GO) Committee and is heading to a hearing on the State Assembly floor.
SGLA Hopes Governor Newsom Will Veto the Bill
As the bill advanced, the Social Gaming Leadership Alliance (SGLA) expressed disappointment, emphasizing that the measure would effectively end $1 billion in “direct and indirect economic activity,” depriving the state of hundreds of millions of dollars in potential new revenue.
Jeff Duncan, ex-Congressman and executive director of the SGLA, was frustrated with the government’s seeming “disregard for facts, economic reality, and the voices of tens of thousands of Californians.” He accused lawmakers of wanting to hand monopoly power to a few local tribes, while hurting competition and other tribal nations.
For context, several tribes have firmly opposed AB 831 and the effect it would have on the economy.
The proponents have consistently said that online sweepstakes are illegal throughout this process. If that were true, then what is the need for AB 831? The reality is the proponents know this industry is legal. The bill isn’t about clarifying the law. It’s about changing the law to give a few wealthy tribes exclusivity while shutting down a legal industry.
Jeff Duncan, executive director, SGLA
Duncan added that he hopes that Governor Gavin Newsom would recognize the bill’s “false premise” and veto it.