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California lawmakers have introduced a new bill aimed at protecting minors from online gambling and prediction market advertising.
Assembly Bill 2617, filed by Assemblymembers Pilar Schiavo and Rob Bonta, comes as digital betting platforms, particularly prediction markets, continue to expand rapidly and reach younger audiences.
“My son doesn’t have to go looking for this predictive, predictive gambling content. It finds him, it finds his friends,” said Bonta, during a news conference Monday. “It’s dressed up to look like skill, like sports knowledge, like a fun way to earn a little money, not like gambling.”
The bill argues that gambling among adolescents often begins before adulthood, with research showing that more than a third of boys aged 11 to 17 reported gambling in the past year. They warn that exposure at such a formative stage increases impulsive behavior and long-term financial risks.
AB 2617 would require operators of gambling websites and prediction markets to verify the ages of their users, restrict advertising that targets minors, and impose penalties for violations.
Age checks and advertising restrictions
AB 2617 sets out clear obligations for operators of online gambling platforms and prediction markets. Before January 1, 2028, companies must avoid offering gambling services to minors if they know a user’s age. After that date, operators will be required to reasonably determine that users are not under 18 before granting access.
The same rules apply to advertising: platforms cannot promote gambling or prediction markets to minors, whether through paid ads, influencer marketing, or algorithm amplification. To comply, companies will need to collect limited information for age verification, which must be deleted immediately after use and cannot be repurposed for marketing or profiling.
Violations will be treated as unfair competition, with penalties of $2,500 per violation, and minors harmed by illegal exposure can pursue civil damages of up to $1 million.
AG and city attorneys to get enforcement powers
The bill grants enforcement powers to the Attorney General and city attorneys, who can bring civil actions against violators. Remedies include fines, injunctive relief, and recovery of attorney’s fees. Parents or guardians may also act on behalf of minors to seek damages.
“The Attorney General shall adopt regulations to implement this chapter, including regulations governing age assurance standards, on or before July 1, 2027. The regulations may include limited exceptions if consistent with the purpose of protecting minors,” the bill stated.
The bill also made it clear that it does not legalize online gambling or prediction markets. Instead, it sets rules to protect minors from exposure. Experts, including Common Sense CEO James Steyer, said the bill will likely pass, though it will face strong opposition.
“They will lobby, lobby, lobby, and do every technique they know up in Sacramento to block this legislation.”
