Representatives of tribal gaming authorities in California asserted their support for the new version of a bill to restrict sweepstakes games during “The New Normal” webcast on Wednesday. The speakers included the chair of the California Nations Indian Gaming Association (CNIGA), James Siva, and Michael Hoenig, who serves as the Vice President, General Counsel for the Yuhaaviatam of San Manuel Nation (YSMN).
Siva expressed his hopes that the legislation would become law in 2025 while affirming that it is a top priority for CNIGA. Hoenig claimed that the social gaming offering that the YSMN offers online is fundamentally different from the sweepstakes-based, casino-style games that the bill would ban in California.
Siva restates support for AB 831
During Wednesday’s webcast, Siva responded to a question about whether he believes that AB 831, for which California Assembly member Avelino Valencia substituted his own version on Monday, will pass in the current legislative term.
“I think we can get it done this session, but it’s going to take a big effort from a lot of tribes,” Siva commented.
Siva added that the enactment of AB 831 is the focus of the CNIGA’s efforts in Sacramento at this time.
“CNIGA views this as our top legislative priority,” Siva stated. “I expect that if we are able to get this bill through this session, a legal challenge will follow that.”
If Siva’s predictions prove accurate, that would follow a similar approach that the CNIGA members have taken toward their disputes with commercial cardrooms in California.
Cardroom legislation set precedent for sweepstakes action
In 2024, California enacted a new law that gives tribal casino operators within the state standing to sue the operators of commercial cardrooms for what the tribes view as violations of exclusivity clauses in gaming compacts between themselves and California. As a result, litigation is now in progress that could finally settle decades of debate over cardrooms’ place in the state’s gaming landscape.
Siva’s comments during Wednesday’s webcast point to tribes taking similar action against the operators of sweepstakes casino websites.
According to Hoenig, that action would not include a social gaming product that the YSMN offers online.
YSMN counsel responds to social casino criticism
After Avelina introduced his substitute on Monday, YSMN Tribal Council Vice Chair Johnny Hernandez, Jr., expressed support for the legislation. Statements from the Social and Promotional Games Association and the Social Gaming Leadership Association pointed to a social gaming product that the Yaamava’ Resort & Casino offers online.
Hoenig addressed that during Wednesday’s webinar, calling the offering completely different from sweepstakes gaming. Hoenig stated that the product has not used a dual-currency system.
Neither Hoenig nor Siva shared details of how soon there could be action on AB 831 in the state Capitol. Siva did express that the bill’s tenets have made it easy to get CNIGA members to support the proposal, however.
AB 831’s potential ramifications for sweepstakes casinos
Because of the substitution, AB 831 is beginning the legislative process anew in Sacramento. The original bill had been approved by the Assembly and a Senate committee.
AB 831 targets websites that offer casino-style games on a dual-currency system. Additionally, their promoters and vendors could also face legal consequences.
Possible penalties include fines ranging from $1,000 to $25,000 and/or up to a year in a county jail. While California may not be the first US state to potentially enact legislation of this kind, it is the most populous state in the country, so its actions in this regard have huge implications for sweepstakes casino operators.
