AB 831 Signed: California Bans Online Sweepstakes Casinos
California Governor Gavin Newsom has actually formally signed AB 831 into law, making it illegal to run or promote online sweepstakes casinos in the state. The new statute takes objective at digital platforms that use a "dual-currency" model to imitate casino betting under the guise of sweepstakes.
Under the law, anybody who runs, conducts, provides, or promotes a covered online sweepstakes game may 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 result, online sweepstakes gambling establishments in California should stop operations or risk prosecution. The law explicitly criminalizes their core organization design. Entities that had actually served merely as facilitators or promoters will likewise be vulnerable.
The new law closes legal loopholes that these platforms exploited by declaring they were sweepstakes, not gambling. It redefines "gambling-themed video games" to include slots, table games, bingo, lottery game, and simulated betting connected to cash or prize payouts.
In addition, the law preserves carve-outs for sweepstakes that do not award money or money equivalents, thereby exempting genuine marketing projects by brand names. The maximum penalty caps at a fine up to $25,000 and/or approximately one year in county jail.
Tribal gaming interests see the law as security of their constitutional and compact-based exclusivity over gambling.
Reception from Lawmakers, Supporters, and Detractors
Supporters, including tribal federal governments and the California Nations Indian Gaming Association, hailed the expense as required to safeguard regulated gaming integrity. Tribal advocates argued that sweepstakes gambling establishments weaken voter-approved video gaming law and revenue circulations.
Assemblymember Avelino Valencia, the expense's author, stated these platforms exploited legal loopholes and weakened California's video gaming system.
But critics from the sweepstakes industry say AB 831 overreaches. The Social and Promotional Games Association and the Social Gaming Leadership Alliance warned that the law could damage genuine digital promos. They likewise argued it might expand criminal liability beyond operators.