An amendment to the bill to ban sweepstakes casinos in California exempts state-run lottery games and “occasional” sweepstakes-based promotions from criminalization.
Sweepstakes casinos operators opposing AB 831 have argued that California Lottery’s online games, in addition to consumer-facing, sweeps-style promos run by companies like Marriott, Microsoft and Starbucks, would be also prohibited under the legislation.
While some have countered this argument doesn’t hold water, the amendment, added Wednesday on the third reading of AB 831, narrows the bill’s language to exclude the state lottery and commercial entities running sweepstakes promos.
The added language reads:
This bill would specify that these provisions do not make unlawful or otherwise restrict lawful games and methods used by a gambling enterprise licensed under the Gambling Control Act or operations of the California State Lottery. The bill would specify that these provisions do not make unlawful game promotions or sweepstakes conducted by for-profit commercial entities on a limited and occasional basis as an advertising and marketing tool that are incidental to substantial bona fide sales of consumer products or services and that are not intended to provide a vehicle for the establishment of ongoing gambling or gaming.
The term “gambling-themed games” in the legislation has also been adjusted to just “gambling”, specifying that “lottery games, bingo, sports wagering, or any game that mimics or simulates similar gambling” would be prohibited.
What’s next for California sweeps ban legislation
On Friday, Aug. 29, the California Senate Appropriations Committee moved AB 831 out of the suspense file and onto the full Senate. It needs a simple majority there to be handed back to the Assembly, where it was approved 77-0 in May before being gutted and amended.
Should it advance to his desk, Gov. Gavin Newsom’s signature would turn the bill into law. While many industry observers see Newsom’s support as pretty much a lock, others believe sweeps operators have an opportunity to convince him to veto.
“Governor Newsom is a very smart, adept, nimble guy, and I think he appreciates the potential if this is regulated,” industry attorney and lobbyist Bill Pascrell III told Sweepsy.com last month.
Where the tribes stand on AB 831
Victor Rocha, Conference Chair of the Indian Gaming Association, has expressed confidence the bill will pass and be signed into law by Newsom. The tribes he represents want sweepstakes casinos shut down to protect their own gaming interests.
“My sources tell me we have more than enough votes in the Senate & the Assembly. I’m also told Gov. Newsom will sign it when it gets to his desk,” Rocha posted on X.
Smaller, less influential tribes, though, oppose the ban, wanting a piece of the gambling action themselves, a dynamic the Social Gaming Leadership Alliance is leaning into.
“Industry analysts and outlets have described the tribes’ opposition as a pivotal moment for digital gaming and tribal economic opportunity in the state, as lawmakers consider a bill that would deny less wealthy California tribes the chance to develop new revenue streams,” the SGLA said in a press release yesterday.
“The California tribes warn that AB831 would disproportionately harm smaller tribes by stripping away lawful digital commerce opportunities, deepening disparities between large, established gaming tribes and more geographically isolated nations.”
