for early access to the latest igaming videos!
and get the latest igaming news first!
Things seem to be going from bad to worse for the US sweepstakes industry, as California has joined the growing list of states looking to ban the gaming model.
On Tuesday (June 24), California assembly member Avelino Valencia introduced Assembly Bill 831 to the Assembly, and it seeks to officially outlaw online sweepstakes games using the dual-currency model. Valencia, like most lawmakers in the state, argues that these platforms conduct illegal gambling operations and shouldn’t be part of the state’s regulatory framework.
“We cannot look the other way while these platforms exploit legal grey areas,”
Valencia said in a statement,
“These operations undermine the voter-approved framework that affirms Tribal governments’ sovereign right to conduct gaming in California. AB 831 strengthens that framework and ensures gaming in California remains fair and accountable.”
Similar to more recent anti-sweepstakes bills, AB 831 also includes provisions that target not only the sweepstakes operators but also the financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, and media affiliates that support them. Violators could spend up to a year in prison with fines as high as $25,000.
Bill Boasts Backing from California Tribes
The proposed legislation is also co-sponsored by the Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA) and aims to protect tribal sovereignty and uphold the integrity of California’s gaming compacts. For long, tribal leaders have maintained that illegal online gaming posed significant threats to the foundation established by voter-approved laws.
Lynn Valbuena, chairwoman of the Yuhaaviatam Tribal Council of San Manuel, stated, “For over 25 years, Tribal governments like Yuhaaviatam of San Manuel Nation have upheld the will of California voters by operating gaming with integrity. Illegal online gaming now threatens this foundation – compromising voter-approved law and putting Californians at risk.”
Vice Chairman Johnny Hernandez, Jr. also shared the group’s support for the bill, highlighting its potential to close dangerous loopholes and enhance the integrity of California’s gaming system. He said, “We remain committed to defending a proven framework that protects the sovereignty of Tribal Nations and delivers real and lasting benefits to all Californians.”
According to CNIGA, tribal gaming contributes nearly $25 billion annually to the state’s economy and supports over 112,000 jobs. CNIGA Chairman James Siva noted that “these illegal platforms erase the benefits of regulated gaming while exposing consumers to serious risks.”
The bill also seeks to impose penalties on individuals and entities promoting illegal sweepstakes operations, which could include high-profile celebrities like Paris Hilton, Ryan Seacrest, and Drake.
Sweepstakes Trade Bodies Condemn Proposal
In a recent statement, the major sweepstakes group Social and Promotional Gaming Association expressed its disappointment with the latest bill, criticizing lawmakers for attempting to implement a ban without public debate, economic analysis, or external input.
“This isn’t how sound policy gets made. A last-minute effort to outlaw legal digital games, without public debate, expert input, or economic analysis, sends a chilling message to entrepreneurs, innovators, and investors across the state,” the statement read.
“California voters didn’t sign on for backroom deals dictated by powerful political interests. With the state facing wildfires, a housing crisis, and a full federal assault on Californians’ rights, it’s astounding that any lawmaker would make banning mobile games a priority.”
The Social Gaming Leadership Alliance, a new trade body, also shared similar disappointment, with Jeff Duncan, the executive director, calling the proposal ‘rushed’ and arguing that it would cut many Californians off from a popular source of entertainment.
While the bill still has a long way to go before it becomes law, its introduction is hugely significant given California’s status as the most populous state in the country. It also comes at a time when everything seems to be going wrong for the industry. Montana became the first state to officially ban the operators last month, with Connecticut following shortly. Several other states, including New Jersey and Mississippi, have introduced anti-sweepstakes legislation this year.
Source: YogoNet
