California Assembly Bill 831 is headed back to the Assembly, but in a state much different than it left the chamber. The state Senate unanimously approved what is now a ban on California sweepstakes gambling on Monday.
Assemblyman Avellino Valencia’s gut-and-amend AB 831 passed unanimously on the Senate floor by a 36-0 vote on Sept. 8. Since being reworked, it is yet to receive a single no vote at any stage of the legislative process.
It must pass in the Assembly Governmental Organization Committee and then gain majority support on the chamber floor if it is to reach Gov. Gavin Newsom’s desk. Sept. 12, is the deadline for bills to pass before the two-year legislative session adjourns for its mid-session recess. Oct. 12 is the final day for Newsom to sign or veto bills passed before the deadline.
AB 831 would criminalize operators of online, dual-currency, prize-awarding sweepstakes gaming that resembles casino gambling or sports betting. It would also hold in violation a wide range of partners of operators, including content suppliers, platform providers, payment processors and affiliate marketing companies that support sweeps “knowingly and willfully.”
The bill was amended twice in the last few weeks. First, to ensure individual players of sweepstakes gaming wouldn’t be penalized. There were more changes last week to allay concerns that it would criminalize state lottery games or non-gambling sweepstakes promotions such as McDonald’s Monopoly or Starbucks Rewards.
Tribes split on sweepstakes gaming
While the California Nations Indian Gaming Association (CNIGA) and major gaming tribes including the Yuhaaviatam of San Manuel Nation have led the strong tribal support for the bill, four smaller tribes have voiced opposition in the last few weeks.
Those include the Kletsel Dehe Wintun Nation of the Cortina Rancheria, which struck a new partnership with sweeps and social gaming leader VGW. The fourth opposing tribe is the Mechoopda Indians of Chico Rancheria, which has partnered with another Social Gaming Leadership Alliance (SGLA) member, Pulsz casino operator Yellow Social Interactive.
On Monday, as the Senate was voting on AB 831 and other bills, members of those four tribes gathered outside the State Capitol in Sacramento to protest the proposed ban, mainly on the grounds that it would limit economic opportunities for less wealthy tribes.
Other opposition to AB 831 has come from Publishers Clearing House (PCH), a longtime operator of sweepstakes promotions which is now owned by a social gaming company, as well as the California cardroom industry.
Sweeps suppliers reading the room
In recent days, as AB 831 neared passage in the Senate, gaming suppliers seemed to take note of which way the wind was blowing.
The Los Angeles City Attorney’s Office filed a civil lawsuit against Stake.us for allegedly operating illegal gambling and named content suppliers like Evolution, Hacksaw Gaming and Pragmatic Play as defendants. Since then, those companies have pulled their games from the platform in California. Pragmatic Play confirmed to SBC Americas that it would no longer supply to sweepstakes gaming operators anywhere in the U.S.
Playtech, which is not implicated in that lawsuit, told SBC Americas last week that it is no longer supplying content or services to sweeps operators in the Golden State.
