AB 831: Gambling: Operation of a Contest or Sweepstakes Passes by a 31-0 Vote in the California Senate

A bill to ban sweepstakes casinos in California passed the state senate late Monday with flying colors. 31-0 was the final vote. 

What is AB 831?

Existing law prohibits specified unfair acts or practices undertaken or committed by any person in the operation of any contest or sweepstakes including, among other things, using or offering for use any method intended to be used by a person interacting with an electronic video monitor to simulate gambling or play gambling-themed games in a business establishment that directly or indirectly implements the predetermination of sweepstakes cash, cash-equivalent prizes, or other prizes of value, or otherwise connects a sweepstakes player or participant with sweepstakes cash, cash-equivalent prizes, or other prizes of value.

This bill would specify that using or offering for use any method, including an internet website or an online application, in the manner described above is prohibited, and would make conforming changes. The bill would delete the term gambling-themed games from the above-described provisions, and revise the description of gambling-themed game gambling to include examples, such as lottery games, bingo, sports wagering, or any game that mimics or simulates similar games, gambling, as specified. The bill would make an unfair practice using or offering games of these types that use a system of payment that allows a person to play or participate in a simulated gambling program for direct or indirect consideration, as specified, and for which the person playing the simulated gambling program may become eligible for a prize or award, cash or cash equivalents, or a chance to win a prize or award, or cash or cash equivalents, in a business establishment, on the internet, or using an online application. The bill would specify that these provisions do not make a game that does not award cash prizes or cash equivalents unlawful.

Existing law makes it unlawful to engage in specified activities related to gambling, including, among others, (1) proposing or drawing a lottery, (2) dealing or playing certain games played with cards, dice, or any device for money, and (3) manufacturing, repairing, or owning slot machines. A violation of these prohibitions is a misdemeanor.

This bill would make it unlawful for any person or entity to operate, conduct, or offer an online sweepstakes game, as defined, in this state. The bill would make it unlawful for any entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly and willfully support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within this state. The bill would make a person who violates these provisions guilty of a misdemeanor punishable by a fine not less than $1,000 nor more than $25,000, or by imprisonment in the county jail not exceeding one year, or by both the fine and imprisonment. By creating new crimes, the bill would impose a state-mandated local program.

What Happens Next? 

Because AB 831 underwent a number of amendments, it heads back to the California Assembly. 

The amended bill will first go through this policy committee, then heads to a floor vote where it will require at least 41 out of 80 votes—to advance.

If the Assembly approves the newly amended bill, it goes to Governor Gavin Newsom. He then has 30 days to sign the bill into law or allow it to become law without a signature. He could also veto it. 

A two-third vote is required to override the governor's veto if the latter occurs. 

The real issue is that the bill must be voted on no later than Saturday September 13.

California law requires that any amended bill be in print for 72 hours (three full calendar days) before a final vote in either chamber.

This means the earliest we can get this final vote is Thursday. 

It is widely believed that Friday, September 12 is the last day for any bill to pass in the Legislature.

In other words, the vote really only has a 24 hour time frame in order to pass. 

- Chris Costigan, Gambling911.com Publisher