AB 831 Signed: California Bans Online Sweepstakes Casinos
California Governor Gavin Newsom has formally signed AB 831 into law, making it prohibited to operate or promote online sweepstakes casinos in the state. The new statute takes goal at digital platforms that utilize a "dual-currency" design to simulate casino betting under the guise of sweepstakes.
Under the law, anybody who runs, conducts, offers, or promotes a covered online sweepstakes game might deal with misdemeanor charges.
Moreover, the law extends liability to supporting entities such as payment processors, platform providers, geolocation services, media affiliates, and other indirect actors.
What AB 831 Becoming Law Means for California Online Sweepstakes Casinos
With AB 831 now in impact, online sweepstakes casinos in California should stop operations or risk prosecution. The law their core company model. Entities that had actually served simply as facilitators or promoters will also be vulnerable.
The brand-new law closes legal loopholes that these platforms exploited by declaring they were sweepstakes, not gambling. It redefines "gambling-themed games" to consist of slots, table games, bingo, lottery, and simulated wagering connected to cash or reward payments.
In addition, the law protects carve-outs for sweepstakes that do not award cash or money equivalents, thereby exempting legitimate marketing campaigns by brands. The optimum charge caps at a fine as much as $25,000 and/or as much as one year in county prison.
Tribal video gaming interests see the law as security of their constitutional and compact-based exclusivity over gaming.
Reception from Lawmakers, Supporters, and Detractors
Supporters, including tribal governments and the California Nations Indian Gaming Association, hailed the costs as essential to safeguard regulated gaming stability. Tribal fans argued that sweepstakes gambling establishments undermine voter-approved video gaming law and earnings flows.
Assemblymember Avelino Valencia, the costs's author, stated these platforms exploited legal loopholes and undermined California's controlled gaming system.
But critics from the sweepstakes industry state AB 831 overreaches. The Social and Promotional Games Association and the Social Gaming Leadership Alliance warned that the law could damage legitimate digital promotions. They likewise argued it could broaden criminal liability beyond operators.