The California Senate and Assembly both unanimously passed a bill that would ban sweepstakes casino operators from doing business in the state.
Now, the bill heads to Gov. Gavin Newsom’s desk. He has until Oct. 12 to either sign the bill into law or veto it. If he doesn’t take any action on the bill, the legislation automatically becomes law after the deadline passes.
AB 831 prohibits dual-currency sweepstakes casinos from operating in the Golden State. Language used in the legislation extends the ban to payment processors, geolocation providers, content suppliers, and affiliates. The law does leave an out for third-party providers by noting they must knowingly and willfully support an unlawful sweeps platform.
The bill passed the Senate by a 26-0 margin on Sept. 8. Then, the Assembly passed the measure by a 63-0 vote on Sept. 12.
Tribes Split On Bill
In California, caisno gaming operations are reserved for tribal operators. Those tribal entities appear split on the ban. Some larger tribes are staunchly in favor of the ban, while smaller, nongaming entities firmly against it.
Those in favor content that sweeps casinos compete with legal and regulated casino operations in the state. They view it an an illegal online gambling website.
On the other hand, nongaming tribes view it as an opportunity. Furthermore, they claim the state is missing an opportunity to regulate and tax the operators. Lastly, they argue the ban threatens their tribal sovereignty.
For example, the Kletsel Dehe Wintun Nation partnered with VGW Holdings, which owns Global Poker and other large sweepstakes casino platforms.
Four nongaming tribes protested the ban at the state Capitol last week, spelling out their reasons to vote ‘no’ on AB 831.
Nontribal Entities Oppose Ban
The ACLU also opposed the bill, arguing that too many residents would run afoul of the law because of the broad loanguage in the bill.
The Social Gaming Leadership Alliance urged Newsom to veto the legislation. The trade group pointed to a recent poll that found 85% of California voters agree the state should modernize and update laws to regulate and tax online social gaming.
“It is incredibly disappointing that the Califonria Assembly decided to pass AB 831,” SGLA executive director Jeff Duncan said. “Beyond the fact that this bill would worsen economic disparities among California tribes, put California to the back of the line in terms of digital innovation in this space, and take away a popular form of entertainment for residents, it will immediately strip $1 billion out of the state’s economy.”
For California poker players, sweeps operators offer the only legal online poker option.
