California Introduces Legislation To Outlaw Sweepstakes Casinos

There has been a lot of legislation being passed or introduced lately involving the outlawing of sweepstakes casinos, and California appears to be one of the next ones in line. 

On LinkedIn, the Global Head of Government Affairs at Light & Wonder, Howard Glaser, wrote, “A bill introduced today with the backing of the California Nations Indian Gaming Association follows similar lines as the New York legislation passed unanimously this week, making it unlawful to facilitate or promote the operation of illegal online sweepstakes casinos by any “financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate."

The bill is AB831. There have been some amendments, including those proposed by Assemblyman Avelino Valencia. With these amendments, it would be a misdemeanor charge to operate, promote, and/or support sweepstakes games and casinos. 

Additional Information on the Bill

AB831 is receiving backing from the California Nations Indian Gaming Association (CNIGA). 

Not only would the unlawfulness include entities such as financial institutions, payment processors, geolocation services, platform providers, gaming content suppliers, and media affiliates, but it could also stretch to celebrity endorsements. 

Currently, the most prominent celebrity endorsements in the sweepstakes casino space include Drake (Stake), Paris Hilton (WOW Vegas), and Ryan Seacrest (Chumba Casino). 

In California, gaming is permitted only on the terms of tribal nations. 

Key Sweepstakes Association Speaks Out

This past Monday, the Social and Promotional Games Association released a statement regarding this bill. 

They called it a "backroom ban" and said it was possible by a “controversial ‘gut and amend’ maneuver” toward the legislative deadline. 

“This isn’t how sound policy gets made,” a spokesperson for the SPGA said. “A last-minute effort to outlaw legal digital games, without public debate, expert input, or economic analysis, sends a chilling message to entrepreneurs, innovators, and investors across the state.

“California voters didn’t sign on for backroom deals dictated by powerful political interests. With the state facing wildfires, a housing crisis, and a full federal assault on Californians’ rights, it’s astounding that any lawmaker would make banning mobile games a priority.”

The SPGA has requested that California Governor Gavin Newsom veto the bill. 

Other Anti-Sweeps Legislation

Here's the latest on other anti-sweepstakes bills:

• Montana passed SB555 to effectively ban sweepstakes casinos. That ban goes into place on Oct. 1. 
• New Jersey has bill A 5447 and a companion bill, S4282. A 5447 recently passed a key committee with an 11-0 vote. 
• Louisiana's bill was vetoed by Governor Jeff Landry. However, numerous cease-and-desist letters were sent. 
• Mississippi has also sent cease-and-desist letters. 
• Connecticut has passed legislation to ban sweepstakes casinos. 
• New York bill SB 5935 is awaiting a signature from Governor Kathy Hochul.