California Anti-Sweeps Bill Makes Clean Sweep Through Legislature

The California State Assembly on Friday voted in concurrence of Senate amendments added to AB 831, which bans online casino sweepstakes operators in the Golden State.

There was no debate on the floor for Assemblyperson Avelino Valencia’s bill as it passed by a 63-0 vote. It now heads to Gov. Gavin Newsom’s desk, where he has 30 days to sign or veto the bill. If he takes no action, the bill becomes law at the end of the 30-day period. The Senate moved the bill, 36-0, Tuesday.

Almost immediately after passage, the Social Leadership and Gaming Alliance put out a statement expressing disappointment in the vote.

“It is incredibly disappointing that the California Assembly decided to pass AB 831,” Jeff Duncan, Executive Director of SGLA wrote. “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.”

A win for (most of) the tribes

California’s Indian Country almost unanimously supports the bill. But four non- or limited Northern Calfiornia gaming tribes have stood in support of the bill with the SGLA. Members of those four tribes — most notably the Kletsel Dehe Wintun Nation — registered their opposition by voice at Thursday’s committee hearing.

“The Tribal Alliance of Sovereign Indian Nations (TASIN) applauds the bipartisan, unanimous passage of Assembly Bill 831,” a spokesperson told Casino Reports via email Friday. “This important win for California safeguards consumers and closes dangerous loopholes exploited by illegal online sweepstakes casinos.”

TASIN has 13 members, including two of the most successful Southern California gaming tribes — the Pechanga Band of Mission Indians and the Yuhaaviatam of San Manuel Nation.

Friday’s vote capped a winding journey around the Sacramento statehouse for AB 831 since the bill was a “gut-and-amend” of the previous legislature. Valencia’s bill had to navigate three Senate committees, and it reverted to second reading in the upper chamber last week after he added amendments that protected social sweepstakes operators.

AB 831 then unanimously passed in the Senate on Monday night, which sent it back to the Assembly. On Thursday, the Governmental Organization Committee voted it forward by a 20-0 vote, sending it back to the full floor on the final day of the legislative calendar.

California becomes the fourth large-market state to pass legislation banning online sweepstakes casinos along with New York, Nevada, and New Jersey. While Gov. Phil Murphy signed the bill into law in the Garden State, New York counterpart and Gov. Kathy Hochul has yet to sign the corresponding bill into law in the Empire State.

Connecticut and Montana have also enacted legislation this calendar year to ban online sweepstakes casinos while measures in Maryland and Louisiana fell short. Louisiana Attorney General Liz Murrill declared sweeps illegal in the Pelican State via written opinion, which opened the door for the Louisiana Department of Revenue to sue operators VGW and MW Services for more than $44 million in unpaid taxes, interest, and penalties.