California to ban sweepstakes casinos through ‘controversial’ bill
California is considering introducing a ban on sweepstakes casinos, in a move that would sever all access to dual-currency gambling platforms.
News comes by way of an official bill, known as AB 831. Under this proposal, sweepstakes iGaming platforms will be shunned from the Golden State.
This is the latest in a string of national maneuvers against sweepstakes operators – with Montana becoming the first state to ban sweepstake casinos.
What does California’s anti-sweepstakes Bill 831 propose?
Originally, Bill 831 sought to extend the review process of crucial accords between California’s tribal communities and the state itself.
As things stand, tribes hold singular control over land-based Californian casinos. The bill would have allowed lawmakers to gain a deeper understanding of how tribal casino establishments carry out operations.
However, Bill 831 has since undergone major restructuring – and the current version of the motion takes aim at sweepstakes platforms.
If passed, Bill 831 will outlaw all sweepstakes-based electronic facilities that ‘simulate gambling’ or offer a ‘gambling-themed game’.
This tribal-supported motion specifically outlines sweepstakes casinos as being unlawful within the bill’s framework.
While tribes and legislators collaborate on the proposal, other vital industry contributors have voiced disquiet over its potential ramifications.
Bill 831 receives backlash from industry leaders
The Social and Promotional Games Association (SPGA) has expressed discontent in the wake of Bill 831 in California.
According to an SPGA statement, the group is “deeply troubled” by the state’s proposed “backroom ban.”
Further, the organization dubbed the proposition a “gut and amend” maneuver – pointing to the haste with which the motion underwent drastic reform.
In a warning to business owners across California, 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.”
SPGA representatives also touched on the fact that a tribal social casino platform, PlayOnline, is run by the Yaamava’ Casino & Resort at San Manuel. Whether that operator continues to provide sweepstakes services after Bill 831 passes remains to be seen.
Given the specificity of the motion’s wording, such disregard for the law is unlikely.
Supporters vow to “crush” sweepstakes industry
Conference chair of the Indian Gaming Association, Victor Rocha, detailed that Bill 831 shall “crush the sweeps in California” in a post published on X.
Should the motion pass – a likely prospect – Rocha’s claim will come to fruition.
The bill will not only impact players and operators, but also public figures who feature in marketing material for sweepstakes platforms.
With no celebrity backing or legal recourse, there exists little room for sweepstakes operators in California.
What’s next for sweepstakes in the US?
Sweepstakes casinos have come under pressure from multiple states in recent months, with Montana’s ban in May being a pivotal moment for the industry.
Not long after, that was followed by New York’s soon-to-be-passed motion against social gambling platforms.
Lawmakers in Connecticut, Nevada, Mississippi and Louisiana have also issued crackdowns against sweepstakes operators.
But, as states cut ties with sweepstakes operators, New Jersey endeavors to create a regulated social casino industry.
It is probably too late for California to follow suit – but legislators will watch the Garden State’s upcoming decision on Senate Bill 4109 with great interest.
If New Jersey successfully integrates a flourishing, regulated sweepstakes market, more states may implement similar measures.
