So far, AB831, the California legislation designed to prohibit sweepstakes gambling in the state, is now two for two on advancing out of committee hearings.
The Senate Committee on Public Safety approved the bill by a 6-0 vote after brief testimony from both sides. While the pro-sweeps side showed up with a surprising new ally in the form of the state chapter of the American Civil Liberties Union (ACLU), the anti-sweeps crowd, consisting largely of tribal groups in the state, brought its own ally, San Bernadino County District Attorney Jason Anderson.
San Bernadino DA worried sweeps comes after kids
“In today’s digital age, increased access to online gambling and virtual betting, coupled with the lack of strong age verification safeguards, puts our youth at serious risk of developing crippling gambling addiction,” testified Anderson.
“Legal gaming operators such as the Yuhaaviatam of San Manuel Nation comply with the numerous laws regulations that are designed to ensure consumer protections and confidence and confidence in the gaming market,” he added.
While this is true of the tribal casino properties run by the group, Duane Morris Partner Bill Gantz noted in his testimony that the group operates a social casino with prizes of real-world value without any regulation or oversight. He also fought back at the argument that social casinos are a negative for young people.
“There’s been no study presented of any consumer harm. There’s not even been any study of the social casino space, which, in fact, would be authorized by this bill,” Gantz noted.
AB831 supporters say it won’t affect consumers
Anderson took on the critics such as ACLU Action California that suggested the bill could make it criminal for people to patronize these sites.
“I’ve also been been made aware of the concerns of the legislature in regarding adding misdemeanor penalties for individuals playing the online sweepstakes games in session. This bill is not interested in that, and neither is the DA’s office. We’re not seeking to penalize the player. Provisions in this bill are only intended to penalize the companies, often offshore, which are the source of this illegal gambling, who are operating these dual currency model games illegally in the state.,” Anderson concluded.
Suppliers and affiliates might be spared
Bill sponsor Assemblyman Avelino Valencia also addressed the issue and suggested that amendments could result in the bill ditching not only the individual provision but the supplier element as well.
“Amendment-wise things like payment processors, financial institutions, geolocation providers, media affiliates and also individuals would not be held liable if this bill were to pass, this is solely going to focus on the entities that are providing the sweepstakes types of platforms,” Valencia told the committee when questioned about the broadness of the bill.
To date, New York is the only state legislature to successfully pass sweeps legislation that would target suppliers in addition to operators in the sweepstakes gaming realm.
Next stop for AB 831 is the Senate Appropriations Committee. The next scheduled meeting of that committee is set for Aug. 18. That gives Valencia some time to potentially iron out the amendments he says are coming to appease cardrooms and those concerned the bill is too broad.
