The California Senate Approves a Bill to Prohibit Gambling

California’s war on sweepstakes casinos is coming to an end.

Assemblymember Avelino Valencia’s A.B. 831 was approved by the California State Senate on Monday by a vote of 36-0. The law would make it illegal to run and provide sportsbooks and sweepstakes casinos.

According to a Senate analysis, A.B. 831 would also unlawfully “permit any individual, organization, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within the state.”

Anyone found in violation of the new law may be subject to jail time and fines.

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In a statement on the measure, Valencia stated, “Many of these’sweepstakes’ operators are based offshore and operate without adequate oversight, avoiding requirements like consumer protections, responsible gaming safeguards, background checks, and tax compliance.”

The Senate changed A.B. 831 to become an anti-sweeps law, and it now needs to return to the California State Assembly, where it first started, to get its modifications accepted. The laws can then be signed into law by Governor Gavin Newsom if they are.

On September 1, Indian Gaming Association conference chair Victor Rocha tweeted that he has heard from sources that A.B. 831 would be signed by Newsom since there are “more than enough” votes in the Assembly to pass it.

The Senate made several changes to the anti-sweeps law to make it clearer who is and is not a target. It was revised once more last week to make sure that the state lottery and licensed cardrooms are not the targets of its provisions.

In addition, the law was amended to clarify that it does indeed “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.”

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