California sweepstakes on the ropes as state Senate approves AB 831

California Assembly Bill 831, which seeks to ban dual-currency and prize-awarding sweepstakes operators from the state, has officially passed the state Senate as part of a unanimous 36-0 vote.  

This bill has continued to build traction in recent months, as it now returns to the Assembly for approval from the Governmental Organization Committee. If received, this approval will be followed by a requirement for majority support from the chamber floor in order to reach Governor Gavin Newsom for final authorization.  

Despite still having a long way to go, AB 831 has so far managed to remain resistant to any and all opposition – as many pro-sweepstakes advocates andTtribal entities have expressed explicit discontent for its alleged vague definitions and Tribally monopolistic structure. 

Indeed, some of these concerns have in fact now been tended to by Assemblyman Avellino Valencia, who has recently amended the bill to ensure sweepstakes players will remain unpunished and that it would not criminalize state lottery or non-gambling sweepstakes promotions. Since these amendments have been made, AB 831 has not received a single contradictory vote.  

The bill also seeks to outlaw DFS from the California market and has split opinions in the Tribal community, with some smaller Tribes stating that AB 831 favors larger entities and threatens to encourage a monopolistic structure within the state’s gambling market. As such, AB 831 has already indirectly influenced gambling history by prompting the first ever official partnership between a sweepstakes operator and Tribal body, with VGW partnering in opposition to the bill with the Kletsel Dehe Wintun Nation of the Cortina Rancheria last month.  

Good to know: Early on in AB 831’s journey, Governor Newsom stated that he disagreed with the opinion that DFS should be outlawed within California

This comment by Newsom came in July after California Attorney general Rob Bonta described the operation of DFS within California state lines as a “violation of the law.”

Now, in the wake of this latest approval, AB 831 has until September 12 to gain majority support from the California chamber floor prior to its mid-session recess, with October 12 being the final date upon which the Governor can sign or veto bills passed prior to the deadline of the two-year legislative session.  

Will Underwood

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