Although we here at Fruity Slots are a UK site, we thought it would be important to cover this recent development: An anti-sweepstakes bill is one step closer to passing in California.
The bill, known as Bill AB 831, proposes to ban sweepstakes casinos, which are online casinos, primarily with a social element where players can play the same games, just with offers for sweepstakes promotions.
In America, the regulation of casinos and gambling is subject to a state-by-state basis. While gambling is legal under the federal government, rules and regulations depend on the state.
With that out of the way, let’s explain what Bill AB 831 is, and why it is closer than ever before to being passed in California.
What Is Bill AB 831?
The bill is a piece of legislation that, under California law, would ban sweepstakes casinos in the state and online fantasy sports. It was voted through by 36 senators in the upper house.
Following that, it was seen and read by an assembly committee that specialises in gaming-related matters and was passed again with 20 yeses.
So what does this mean?
What Happens Next?
The bill will go to the State Assembly, where the 80 members will vote. If this gets approved, it would mean all the Governor Of California, Gavin Newsom, has to do is sign it into state law. Effectively, this would ban any sweepstakes casinos that operate in the state and any betting on fantasy sports.
The process is expected to continue on 12 September, where another vote will take place.
Does Gavin Newsom Have Opinions On Gambling?
Newsom has expressed his opinions on casinos and gambling matters several times. In 2024, he signed Senate Bill 549, a bill that permitted tribes to sue card rooms over possible violations of tribal gaming laws. In tribal casinos, the rules differ from those of regular land-based casinos and online casinos.
Other than that, Newsom has not spoken on the bill, but his past actions show he is committed to the cause of letting existing tribal casinos operate in the state.
What Could This Mean For The Future Of Sweepstakes Casinos?
On a statewide basis, this could be detrimental for sweepstakes casinos. Since it is such a large regulatory challenge, it could stop dual currency gambling businesses and provide severe limits on casinos and offer promotions, given that sweepstakes casinos work on a specific type of offer.
Outside of California, there are other implications if a bill like this passes:
- Reconsideration of sweepstake casinos – As one of the biggest states in America, a bill like this passing could increase scrutiny of sweepstake casinos statewide. Tribal casinos have already condemned the practice of sweepstakes casinos and supported the bill.
- Penalties for casinos, operators, and their affiliates – Casinos that do not comply with exact regulations could see fines and legal action by the state. Also in possible trouble would be operators who facilitate the opening of sweepstakes casinos and any affiliates who promote sweepstakes casino offers.
- More regulation of IGaming – The more regulatory bills pass, the more likely it is that states in America will continue to try to regulate factions of IGaming. While this can be a good thing for keeping businesses and markets stable, it can also impose strict restrictions.
Final Thoughts
It is important to remember the bill is still under consideration, and nothing is set in stone. However, with lots of political support from senators and the tribal casinos, it may already be over. For gambling, California is a huge market in America, and if a state as liberal as that seeks to ban or restrict sweepstakes casinos, it’s likely a shift towards them will come.
