California Assembly Governmental Organization Committee unanimously approves AB 831
The anti-sweepstakes legislation now heads to the full state Assembly for a final vote, prior to being submitted to Governor Gavin Newsom for signature into law.
Key Points
- AB 831 seeks to ban dual-currency and prize-awarding sweepstakes operators from the state, having passed through the California Senate on September 8 with a 36-0 approval
- The SGLA released a statement challenging the Assembly’s vote, stating AB 831 threatens economic opportunities for Tribes and costs “hundreds of millions of dollars” in potential new revenue
The California Assembly Governmental Organization Committee unanimously approved Assembly Bill 831 on September 11, which seeks to ban dual-currency and prize-awarding sweepstakes operators from the state, prompting a response from the Social Gaming Leadership Alliance (SGLA).
The SGLA released a statement challenging the Assembly’s vote, stating AB 831 threatens economic opportunities for Tribes and costs “hundreds of millions of dollars” in potential new revenue.
“Today’s hearing exposed the committee’s complete disregard for facts, economic reality and the voices of tens of thousands of Californians all to hand monopoly power to tribes that have already invested hundreds of millions of dollars in Las Vegas and California coastal properties,” SGLA Executive Director Jeff Duncan said.
“All the while passage of this bill would deny our Tribal partners the very opportunities the proponents themselves have used. If this damaging bill moves through the Assembly, we hope Gov. Newsom will see it for the poor policy it is and veto AB 831.”
AB 831 passed through the California Senate with a unanimous 36-0 vote on September 8 and now heads to the full state Assembly for a final vote prior to being sent to Governor Gavin Newsom for his signature into law.
Good to know: A spokesperson from Pragmatic Play informed Gaming America on September 2 that the supplier will be withdrawing from the US sweepstakes market
“As the committee heard today, the entire premise of this bill is false. The proponents have consistently said that online sweepstakes are illegal throughout this process,” Duncan said.
“If that were true, then what is the need for AB831? The reality is the proponents know this industry is legal. The bill isn’t about clarifying the law. It’s about changing the law to give a few wealthy Tribes exclusivity while shutting down a legal industry.”
On September 4, the California Senate revised AB 831 for a third time after clarification was needed regarding the legal status of promotions run by companies such as McDonalds and Starbucks.
The California Senate created a new section within the legislation that states prohibited sweepstakes play would only apply to operators “knowingly and intentionally” conducting business relating to online sweepstakes games that utilize a dual-currency system.
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