The battle over the potential ban on sweepstakes casinos in California is intensifying.
California's proposed legislation, AB 831, which seeks to regulate "dual-currency" sweepstakes casinos, is facing resistance from the Big Lagoon Rancheria Tribe.
In a detailed letter to the Senate Appropriations Committee, Chairperson Virgil Moorehead criticized the rushed nature and lack of comprehensive consultation surrounding the bill.
He emphasized that AB 831 could negatively impact tribes by eliminating potential business opportunities, particularly for non-gaming tribes not positioned to benefit geographically from large casinos. Moorehead also raised concerns about the bill's broad language, which he says could inadvertently criminalize a wide range of ancillary services tied to sweepstakes platforms, such as payment processors and advertising firms.
There has also been a push to make fantasy sports illegal in the Golden State.
What AB 831 Would Change in California?
Sponsored by Assemblymember Avelino Valencia, AB 831 takes aim at online platforms like High 5 Casino and Pulsz Casino, which exploit legal loopholes to offer casino-style gambling without adequate regulation.
AB 831 also seeks to make it illegal to operate or promote online sweepstakes casinos in California, specifically targeting the dual-currency model.
The bill includes amendments that protect ordinary users and entities that might unknowingly support these platforms. It primarily targets operators, payment processors, influencers, and associated entities without penalizing end-users.
The bill is a response to claims from tribal gaming authorities who view these platforms as a threat to their sovereign gaming operations.
What's The Timeline for the Sweepstakes Casino Ban Bill?
Despite the opposition, AB 831 has made significant legislative strides, passing through its initial committee stages in early July.
The Senate Public Safety Committee recently approved the bill with a unanimous 6-0 vote on July 15. Its next evaluation is set for August 18 in the Senate Appropriations Committee. While the current legislative session concludes on September 12, the bill could extend into future sessions if needed.
SPGA Provides Broader Opposition to the Ban
While the bill enjoys strong support from groups like the California Nations Indian Gaming Association, arguing it stabilizes the legal gaming ecosystem, it also encounters substantial opposition beyond the Big Lagoon Rancheria.
The Social and Promotional Games Association (SPGA) aligns with the tribe's views, criticizing the bill as hurried and flawed and urging lawmakers to reconsider its rapid advancement.
The outcome of AB 831 will depend on its progress through the Senate and final endorsement from both legislative chambers before being submitted to the governor. Debate remains vibrant, with the Appropriations Committee's imminent review marking a critical stage in the bill's journey.
As stakeholders continue to get involved, California's legislators are tasked with balancing diverse viewpoints in their decision-making process.
