Another prominent operator in the sweepstakes gaming industry has added language to its terms and conditions that provides a broad shield for it in California, preparing for the possibility of Assembly Bill 831 passing and outlawing sweeps casinos in the state.
Modo.us, the sweepstakes casino owned by ARB Interactive, added the following information to its terms and conditions in a recent update:
NOTICE TO CALIFORNIA RESIDENTS. In accordance with California Civil Code sections 1541 and 1542, you hereby agree to waive all rights and remedies under Section 1542.
Why is Modo.us doing this?
The important component here is California Civil Code section 1542, which states:
A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
Confused yet? No worries. In other words, if you waive your protection, that means that if you sign a release of claims (or, if you check a box saying you approve a sweeps casino’s terms and conditions), that only covers claims regarding things you knew about when you signed the release (or checked the box).
With this language, Modo.us is making California residents agree upfront to waive that protection. That means:
- You agree to not sue Modo.us for both known and unknown claims that might result from you playing on the site.
- Even if a problem is discovered later (perhaps a legal violation you didn’t know about), you’re saying you won’t hold Modo.us liable because you’ve already waived those rights.
This is likely the result of Modo.us being on high alert in California.
One, this helps prevent lawsuits right now in California, which would be a bad look as the sweeps industry works to combat AB831 and prove they’re willing to play ball and become regulated operators.
Two, this helps prevent lawsuits in California should player issues arise if AB831 passes and Modo.us has to shut down its operations in the state in 2026.
In short, the legal waiver is a preemptive defensive maneuver — a way for Modo.us to limit the damaging effects from AB831 if that passes and sweeps casinos become illegal in the state.
VGW made the same change in July
Another big name in sweeps — the biggest, in fact — made the same change to its terms and conditions last month.
On July 10, VGW sites Chumba Casino, LuckyLand Slots, and Global Poker added the following language to their terms and conditions:
“If you are a consumer who resides in California, you waive your rights under California Civil Code § 1542, which provides: ‘A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favour at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.’”
That move came just days after VGW told Sweepsy it started charging sales tax in numerous states across the U.S. So, while the company was battoning its hatches from a legal perspective with the section 1542 language, it was also trying to prove to California lawmakers it was 100% serious when it told them it was “happy” to charge sales tax in the state.
VGW and ARB Interactive are both members of the Social Gaming Leadership Alliance, a sweeps advocacy group.
Only 17.5% of operators have that CA protection
So, just how common is language like this in terms and conditions for sweeps casinos?
Sweepsy sampled the terms for 40 different operators. We found seven — so, 17.5% — that included a waiver of California Civil Code section 1542. Three were VGW’s Chumba Casino, LuckyLand Slots, and Global Poker. The other four were:
- Thrillzz
- RealPrize
- Carnival Citi
- Chanced
Of that group of seven, only Modo.us includes reference to section 1541, which isn’t really necessary and simply establishes that a written release is enforceable. So, the 1542 language makes it so players can’t later sue the operator in California for things they didn’t know about when they approved the terms, and 1541 reaffirms the written agreement is enforceable.
Next step for AB831 comes Aug. 18
AB831, which would ban online sweepstakes casinos in California, is set to receive its third and final Senate hearing before the Appropriations Committee on Aug. 18. If that committee gives its approval, AB831 will advance to the Senate for a full vote. If it passes there, it must be re-approved by the full Assembly, as the current version of AB831 is entirely different from the version that passed in the Assembly this spring.
The current legislative session ends Sept. 12. Gov. Gavin Newsom could extend things with a special session. But even if not, AB831 can roll over to the 2026 session in January without starting the process over because the state has a two-year legislative cycle.
On the marketing side of things, B-Two Operations sites have either halted or adjusted their promos targeting California players as AB831 progresses through the legislature.
Sweepsy learned Mega Bonanza stopped its promos targeting California players on July 20, and it asked its affiliate partners to do the same.
Sweepsy also learned Hello Millions, PlayFame, and SpinBlitz asked their affiliate partners to stop showing their offers to California players, effective July 22.
Of note, McLuck, B-Two’s largest brand, has not made the same adjustments.
