Ban on Sweepstakes Casinos Much Closer to Becoming Law in California

A committee voted 20-0 today to move the bill that would prohibit sweepstakes and social casinos in California to the full assembly floor for debate and possible vote.

Assembly Bill 831 garnered hardly a word of debate on Thursday when it came up on the agenda for the Assembly Governmental Organization Committee. That body voted unanimously to perform "concurrence" on the bill.

As a result, prior amendments were approved and the ban on sweepstakes casinos could be passed in the assembly on Friday, which is scheduled as the final day of this lawmaking session.

Lawmakers will be working around the clock on Friday, Sept. 12 to deal with bills that have been navigating through the two-house legislature in Sacramento. AB 831 has had a fairly clean path so far.

Earlier in this week, the State Senate passed AB 831 by 36-0. That came after the upper body added language to the bill that defines penalties and also exempts retail sweepstakes contests and game from a ban in California.

The Senate and Assembly have largely ignored the opposition to the ban. This week four tribal nations had some of their members at the capitol building in Sacramento to protest the sweepstakes ban. Their concerns? Tribal sovereignty mostly, and the opportunity for their nations to offer sweepstakes-like products themselves.

Governor Gavin Newsom would see the bill on his desk if it passes the full assembly on Friday. If it ends up there, Newsom, who has been a supporter of gaming in his state, would have roughly two weeks to out his name on it, making it law. If he ignores it, a veto will be recorded.

It's expected that AB 831, the ban on sweepstakes casinos will be signed by Newsom if he gets a chance, however.

Many sweepstakes and social casino operators are doing business in California. The state has proven to be a ripe market for these companies that exist in a grey area of the gaming law: offering products that allow consumers to not use real money to play casino games. Customers can easily download these apps and be playing slots and casino table games within minutes for free.

On Friday, the assembly could simply call for a vote, foregoing debate. If so, a simple majority of present members would be needed for passage.

California would become the sixth and largest state to legally and explicitly ban sweepstakes casinos. The others are Connecticut, Montana, New Jersey, Nevada, and New York. The state has yet to resolve the issue of legal commercial casinos or online sportsbooks, with lawmakers having failed to get those passed in prior efforts.