SGLA responds to anti-sweepstakes bill advancing past California Senate committee
Lawmakers chose to advance AB 831 on July 8, which looks to outlaw the operation of sweepstakes casinos across the state.
Key Points
- When an unrelated piece of legislation was passed through the Assembly, the California Senate chose to insert language that prohibits sweepstakes casinos in June
- The next hearing for AB 831 is scheduled for July 15 in front of the Senate Public Safety Committee
The California Senate Governmental Organization committee chose to advance AB 831 on July 8, which attempts to officially prohibit the operation of sweepstakes casinos throughout the state, with a scheduled hearing in front of the Senate Public Safety Committee set for July 15.
The decision prompted a response from the Social Gaming Leadership Alliance (SGLA), which called for the rejection of AB 831 prior to its advance through the committee.
“This bill isn’t about protecting players. It is about protecting incumbents from competition,” SGLA Executive Director Jeff Duncan said.
“It would override longstanding legal precedents affirming the legitimacy of sweepstakes promotional models that are used across industries including food, retail, entertainment and political campaigns.”
Following the Assembly’s approval of an unrelated piece of legislation back in May 2024, the California Senate then chose to include anti-sweepstakes language as part of AB 831 in June. The state’s legislative session runs until September 12, but bills are allowed to carry over into the 2026 session if required.
Good to know: California Attorney General Rob Bonta issued a statement on July 3, stating daily fantasy sports contests fall under the state’s definition of gaming and should be deemed illegal
“The rushed process was evident in today’s hearing, where senators repeatedly asked for amendments and clarification on basic provisions, with some reserving the right to change their votes pending further stakeholder input,” the SGLA said.
Many supporters of the legislation cited endorsement from California Tribes, which hold exclusivity over most forms of gambling within the state. Some failed to understand the “urgency” of the legislation, noting its insertion into an unrelated Tribal gaming bill.
Separately, the Social and Promotional Games Association (SPGA) has announced its own formal opposition to the bill, stating that it fails to define important threshold terms relating to the definition of what qualifies as ‘online sweepstakes.’ Further, the association has stated that this discrepancy has left a large margin for potential errors in the enforcement of the bill – hence why it should be, in the SPGA’s opinion, reconsidered.
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