California Anti-Sweeps Bill Passes In Key Committee

After passing with a unanimous vote in the Senate Governmental Organization Committee, California's anti-sweepstakes casino bill, AB 831, was sent to the Senate Committee on Public Safety on Tuesday, July 15. 

It received a 6-0 vote and has advanced to the Senate Appropriations Committee, which next meets on August 18. 

Amendments to the Bill

AB 831, sponsored by Assemblyman Avelino Valencia, has received some amendments. 

First, though, the goal of his bill was to close a loophole in state law in which sweepstakes casinos could operate by “circumventing the will of the voters and sidestepping the state’s gaming framework.”

With the amendments, players and "entities who unknowingly support online sweepstakes" would be protected from facing criminal charges. 

Valencia is also in talks with card rooms in the state to ensure they won't be harmed either. 

Argument: Sweepstakes Casinos Pose a Risk

Speaking on behalf of Valencia were Johnny Hernandez, vice chairman of the San Manuel Band of Mission Indians, and Jason Anderson, the district attorney of the County of San Bernardino.

“Teens and underage adults have a difficult time going into a casino unnoticed, but they have very easy access to a variety of the betting and gambling options online," Anderson said.

Anderson also provided comments on the amendments that Valencia made, saying that the new law is “only intended to penalize the companies … which are the source of this illegal gambling who are operating these dual currency model games illegally in the state.”

“Assemblymember Valencia has presented the legislature with an opportune bill at an appropriate time, and I strongly urge the committee to support to move this bill through the process so that California can take a step forward in joining other states in protecting our children," Anderson said.

Valencia said that tribal gaming in the state has generated over $25 billion in tax revenue and offers 112,000 jobs. Across those jobs, that's about $7.6 billion in income from labor.

“The dual-currency model creates a dangerous environment where Californians, especially young and vulnerable users, are exposed to real-money, gambling-like experiences with none of the consumer protections … that the state has spent decades putting into place,” Hernandez added.

SGLA, SPGA, and Other Push Back

The opposition to AB 831 is fierce, too. 

Those against it include the Social Gaming Leadership Alliance (SGLA), Social and Promotional Games Association (SPGA), the Chief Marketing Officer of ARB Interactive, David Jumper, and numerous other groups, including the following:

• ACLU California Action
• American Transaction Processors Coalition
• Association of National Advertisers
• Californians United for a Responsible Budget
• Virtual Gaming World

“We heard the bill author admit substantial amendments are needed to prevent unintended consequences but has failed to produce them,” said Jeff Duncan, a former U.S. Congressman who's now the Executive Director of the Social Gaming Leadership Alliance.

“Lawmakers are being asked to vote on legislation that even its author acknowledges is incomplete and inadequate. We urge California lawmakers to listen to the thousands of constituents that have contacted their offices and work with the industry to keep this established form of entertainment legal and properly regulated.”

Jumper is also an important figure. The company he works for, ARB Interactive, is behind Modo Casino and recently purchased Publishers Clearing House. 

He said that Modo provides “ongoing access to free gold coins and maintains a robust alternate method of entry, ensuring no purchase is ever required.”

On top of all of this, sweepstakes casinos like Chumba Casino and Golden Hearts Games have sent emails to players urging them to contact local representatives. 

Virtual Gaming Worlds, the company behind Chumba Casino, set up a platform on Quorum as a direct line to lawmakers, and on July 7, it had nearly 20,000 responses from players. 

We'll see what comes of AB 831 next as states around the country intensify their stance against sweepstakes casinos.