The California Assembly unanimously passed a bill to ban sweepstakes casinos in the state, leaving the decision up to Gov. Gavin Newsom.
The Assembly passed AB 831 63-0 on Friday afternoon, the last day of the legislative session.
There has been no indication from Newsom whether he will sign the bill or not. The bill banning sweepstakes casinos is supported by the California Nations Indian Gaming Association and did not receive a single no vote during the legislative process.
Newsom has until Oct. 12 to act on the bill, after which it will pass without a signature.
Most significant sweepstakes ban yet
Should AB 831 become law, it will be the biggest hit the sweepstakes casino industry has taken so far.
Connecticut, Montana, Nevada and New Jersey have all banned sweepstakes through legislation. A bill in New York is still awaiting the governor’s signature, but the state’s attorney general sent cease-and-desist letters to more than two dozen sites.
Louisiana’s legislature also passed a ban bill, though that was vetoed by Gov. Jeff Landry, saying the state’s gaming regulators already had the ability to act on illegal gambling operators. The Louisiana Gaming Control Board then sent more than 40 cease-and-desist letters to lock the sites out of the state.
Other states, including Michigan and Mississippi, also used cease-and-desist letters to ban sweepstakes operators.
Sweeps groups tried for tribal support
The Social Gaming Leadership Alliance, one of two industry groups for sweepstakes operators, worked with four tribes to try to show the legislature not all California tribes were unified behind the ban bill.
“AB831 is a flawed and rushed bill that lacks broad tribal consensus. As Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria and Big Lagoon Rancheria have made clear, this bill would limit economic options available to tribes and worsen already fragile economic conditions,” SGLA Executive Director Jeff Duncan said.
“What California lawmakers should focus on instead is creating proper regulation that supports online social games, creates new revenue sources for the state and protects economic opportunities for all tribes.”
