California Inches Closer to Banning Sweepstakes as AB 831 Advances

California’s anti-sweepstakes bill has continued to gain traction and is currently heading to the Senate. If passed, the measure would put an end to dual-currency social casinos.

AB 831 Continues to Gain Traction

Assembly Bill 831 outlines a ban on dual-currency online casinos, better known as sweepstakes. This controversial form of gaming has experienced rapid growth due to its free-to-play model.

While sweepstakes can be played for free, users can also purchase paid currency to continue gaming. As a result, regulators and licensed operators across America have slammed sweepstakes as illegal gambling, even though sweepstakes operators have insisted otherwise.

AB 831 is part of a broader trend, as multiple states have firmly opposed sweepstakes. While regulators have managed to convince some social casinos to cease their local operations, the legislative efforts against sweepstakes have so far mostly ended in failure.

The Bill Envisions Penalties for Violators

AB 831 comes in the wake of an earlier anti-sweepstakes bill that failed to pass. Despite that, the latest measure against the sweeps industry has continued to make strides, most recently passing the Senate’s Appropriation Committee with unanimous approval (7-0).

As a result, the bill is now heading to the Senate. However, this does not necessarily mean that the bill will find the same approval in the Senate.

If AB 831 does end up passing and getting signed into law, it would introduce strict measures against violators, including penalties of between $1,000 and $25,000. Offenders could also risk up to a year in jail, depending on the severity of the offense.

Sweeps Ban Divides California’s Tribes

AB 831 has divided California’s tribal gaming sector. While the measure has been supported by the Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association, it has been staunchly rejected by other tribal organizations, such as the Sherwood Valley Band of Pomo Indians, Big Lagoon Rancheria and Kletsel Dehe Wintun Nation of the Cortina Rancheria Tribe.

The opposing tribes have emphasized that the measure does not represent the California tribes’ unified perspective. The Sherwood Valley Band, for example, is wary of the economic effect of banning a “legitimate, regulated digital enterprise.”

In the meantime, Los Angeles just sued Stake.us and some of its supplier partners, arguing that they have violated the local gambling laws.