California Assembly unanimously approves AB 831, now awaits Governor’s signature
Governor Gavin Newsom has until October 12 to consider the anti-sweepstakes legislation, otherwise AB 831 will pass through the California legislature in a
Key Points
- AB 831 seeks to ban dual-currency and prize-awarding sweepstakes operators from the state and passed through the Governmental Organization Committee on September 11
- On September 4, the California Senate revised AB 831 for a third time after clarification was needed for the legal status of promotions run by companies such as McDonalds and Starbucks
The California Assembly has unanimously passed Assembly Bill 831 with a 63-0 vote on September 12, which seeks to ban dual-currency and prize-awarding sweepstakes operators from the state and was accepted by the Governmental Organization Committee just one day prior.
Governor Gavin Newsom now has until October 12 to consider the anti-sweepstakes legislation and either sign it into law or veto the bill, otherwise AB 831 will pass through the California legislature in a “pocket signature.”
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.
Opposition to AB 831, such as the Social Gaming Leadership Alliance (SGLA), spoke out against the legislation after it passed through the California Assembly Governmental Organization Committee by a 20-0 vote.
Good to know: Massachusetts Attorney General Andrea Joy Campbell filed a lawsuit against predictions markets platform KalshiEX in Suffolk Superior Court on September 12, accusing Kalshi of failing to follow state law which governs sports betting
“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.”
As a result of the September 4 revision, 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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