Sweepstakes casinos will be illegal in California in under three months after Gov. Gavin Newsom signed a bill banning the platforms into law Saturday.
AB 831 is effective as of Jan. 1. The bill did not receive a single vote against it as it made its way through the California legislature.
The bill that banned sweepstakes casinos was backed by the California Nations Indian Gaming Association. CNIGA said the games impinged on the exclusive tribal rights to offer gaming in California.
Another loss for sweepstakes operators
California banning sweepstakes casinos is not just the industry’s most recent loss, but its most significant loss as well.
The state is the largest by population in the US with more than 39 million residents. The biggest state so far to act on sweepstakes is New York, which has about half the population of California as the fourth largest state by population. The New York bill is awaiting Gov. Kathy Hochul‘s signature.
The industry dodged a bullet in Florida, the third largest state by population, where legislation to ban sweepstakes casinos did not pass through the legislature.
Industry group asked for veto
The Social Gaming Leadership Alliance asked Newsom to veto the bill. It noted a study done for it by Seven Letter Insight that said 85% of respondents wanted California to “modernize and update” laws to regulate and tax sweepstakes operators for more tax dollars.
“It is incredibly disappointing that the California Assembly decided to pass AB 831,” said Jeff Duncan, Executive Director of SGLA. “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,”
“We implore Governor Newsom to veto this bill and instead open the door for online social games to support economically disadvantaged tribal nations and the state’s economy while positioning California as a leader in next-generation gaming technology.”
