A revamped bill is seeking to banish sweepstakes casinos from California.
Initially intended to tweak California’s tribal-state compact laws, Assembly member Avelino Valencia, with backing from the California Nations Indian Gaming Association (CNIGA), has overhauled Assembly Bill 831 into a ban on sweeps.
The new version seeks to amend California’s Business and Professions Code and Penal Code to make it unlawful to operate, conduct, offer, or promote an online sweepstakes game.
Under the proposed legislation, sweepstakes games are defined as a product that is available online or via mobile and utilises a dual-currency system of payment. They also allow a person to participate via a direct or indirect consideration, award cash or cash equivalents and simulate casino-style gambling, lottery gaming, bingo or sports betting.
Similar to other bills, such as the sweepstakes legislation in New York that is currently awaiting Gov. Kathy Hochul’s signature, entities such as platform providers, media affiliates, financial institutions and geolocation providers associated with sweeps casinos are also targeted.
Anyone found to have violated the ban would be guilty of a misdemeanour offence, carrying punishments of a fine up to $25,000 and up to one year in county jail.
Games that do not award cash prizes or cash equivalents, such as promotional sweepstakes for grocery stores, would not be unlawful under the bill.
Conflicting interests
Assembly Bill 831 is sponsored by the San Manuel Nation, a federally recognised tribe of Serrano people in San Bernardino County, which owns and operates Yaamava’ Resort and Casino.
However, Yaamava Resort and Casino also appears to operate an online social casino called PlayOnline, which lists offerings such as The Factory Sweepstakes and a Fall Surprizes Sweepstakes on its promotions page.
Although PlayOnline does not offer cash prizes directly, it does give players the chance to win thousands of dollars in real-money casino credits, meaning that the platform would be unlawful under the proposed legislation.
Other casino operators like MGM and Hard Rock also have ties to similar casino sites that appear to conflict with the bill.
Continued action
Assembly member Avelino’s sweepstakes bill continues the targeting of the vertical by US lawmakers.
Connecticut, Montana, Nevada, Louisiana and New York have all passed online sweepstakes bans in recent months, however, the Louisiana ban was vetoed by Gov. Jeff Landry.
Although the bill still has a long way to go before it becomes law, a potential ban in California would be one of the biggest blows against sweepstakes, given the Golden State’s status as the most populous state in the US.
In response to the efforts, the Social and Promotional Games Association (SPGA) has described the overhauled nature of the bill as a “backroom ban on sweepstakes”.
The body, which represents the sector, told iGamingExpert: “This isn’t how sound policy gets made. 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.”
