The California Senate has passed a pivotal bill, AB 831, marking a significant step toward outlawing sweepstakes casinos.
Voting on the motion commenced on September 8 and culminated in a unanimous 36-0 result in favor of the bill. Now, AB 831 will return to the lower chamber for full-scale reassessment following several Senate-approved amendments.
What is AB 831?
The proposal seeks to modify existing California law by specifically prohibiting sweepstakes platforms.
Most pertinent is the bill’s anti-sweepstakes language, which directly forbids social casino/sweepstakes operators from entering the state.
Section 337o: “It is unlawful for any person or entity to operate, conduct, or offer an online sweepstakes game in this state.”
Moreover, AB 831 spotlights and expressly bars dual-currency systems; a popular strategy employed by sweepstakes operators like Stake.us.
Why California’s AB 831 passage matters…
Founding and operating sweepstakes betting platforms will not be permitted under the guise of this revamped AB 831 motion.
Simply put: should AB 831 advance through the Assembly and earn Governor Gavin Newsom’s signature, California players will no longer have access to online casino games hosted by sweepstakes firms.
For the state, this means fewer tax dollars. Publishers Clearing House (PCH) – a company that considered entering the Californian sweeps market – communicated that a regulated sweepstakes market could generate around $149m in annual state revenue.
Abandoning the arena entirely leaves The Golden State with a notable hole in its potential yearly takings.
What next for AB 831?
Now that AB 831 has earned unanimous passage through the state’s Senate, it will return to the Assembly – where it originated – for further reading and voting.
If AB 831 had progressed through the Senate without undergoing changes, the bill would be on its way to Governor Newsom’s desk for signing.
However, the Assembly must examine the Senate’s adjustments before submitting the proposal to Newsom. Only upon earning approval during this phase can AB 831 be transported to the Governor’s office.
Given the unmitigated success of AB 831 throughout several stages of debate and polling, it is unlikely to falter at the Assembly. Even if the act were unexpectedly shot down by Assembly members, a committee would congregate to agree on a compromised format.
Opposition influence dwindles ahead of Assembly meeting
For those opposing AB 831, such as the Social and Promotional Games Association (SPGA), Social Gaming Leadership Alliance (SGLA) and select tribal gaming operators, now is the time to convince Assembly members that the bill is, as the SGLA stated, “a fundamentally flawed proposal that serves the narrow interests of a few powerful groups while silencing the voices of millions of Californians who responsibly enjoy these games.”
On the other side of the coin, Conference Chair of the Indian Gaming Association, Victor Rocha, lauded the bill’s uniform victory – and mocked pro-sweeps parties:
“The final vote today for AB 831 was 36-0. All the whining and sniveling from the Moron Twins – SPGA & SLGA – did absolutely nothing. They could have stayed home and had the same results. Now we’re discussing a second line of attack. This thing is far from over.”
The California Assembly must now convene to decide on the best course of action. It is anticipated that the bill will proceed with limited pushback, and subsequently land at Governor Newsom’s doorstep for signing into law.
