California Bill Targeting Sweepstakes Casinos Advances in Senate, Heads for Further Review

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California’s politicians are clamping down on online sweepstakes casinos. These sites often attract players by allowing them to exchange what appear to be play-for-money tokens for actual cash prizes; however, may state politicians may view them as online casinos without proper regulations or rules. 

Assembly Bill 831, a new proposal, aims to shut them down for ignoring state gambling laws. The proposal successfully passed its first significant test in the Senate, receiving unanimous approval from the committee. However, even with that momentum, lawmakers and industry groups are still debating how the bill is written and who exactly it would affect. 

Bill Passes First Senate Vote

The bill, introduced by Assembly member Avelino Valencia, is now on its way to the Senate Public Safety Committee. It works with online spaces where two forms of currency are active.   These sites let players buy virtual credits, play games, and then cash out any winnings for real money. As a result, Lawmakers and gambling regulators say that there is no distinct difference between online gambling and sweepstakes casinos. 

All ten members of the Governmental Organization Committee voted to approve the bill.  However, even those who voted in favour of the bill questioned how the bill would actually be enforced. Some lawmakers want regulations more clearly laid out so loyal players don’t get caught up in penalties meant for big businesses and their promoters. 

While sweepstakes casinos are under fire at the moment in the Golden State, online casinos remain illegal in California. However, many residents still play on offshore sites licensed by credible international gambling authorities. Gambling expert Viola D’Elia’s Esports Insider mobile picks of the best mobile casino apps show how Californian casino fans are attracted to these platforms. They tend to offer larger game libraries that have been optimized for mobile. They also offer fast payouts, flexible payment options, and enticing bonuses like welcome rewards, cashback offerings, and free spins. Some features sometimes overlap with what sweepstakes casinos often advertise, blurring the line even further and raising more questions about how regulation should apply across both models. 

Tribal Casinos and Big Betting Brands Back the Plan

Support for the bill is coming from some of the biggest names in California’s gaming scene.   Tribal groups like the California Nations Indian Gaming Association and the San Manuel Band of Mission Indians have been outspoken about their concerns. Officials believe these sweepstakes casinos are bending the very rules voters approved in the first place. This could create issues around the balance of legal gambling across the state. 

Major sportsbooks under the umbrella organization, the Sports Betting Alliance, are pushing for tighter control of online gambling. Unlicensed sweepstakes platforms give some companies an unfair edge, making it tougher for regulated businesses to compete. Over time, this chips away at trust in a system meant to keep gambling fair. Licensed operators warn that if these sites keep growing, they could threaten the future and current landscape of legal gambling in California.

Companies Behind Sweepstakes Sites Say the Bill Is Rushed and Unfair

Not everyone is on board with the direction the bill is heading. Companies like Play Studios, VGW, the World Poker Tour, and the Social Gaming Leadership Alliance are speaking out against it. They argue that these platforms have been around in California for over ten years and have never caused a problem. Now, they say, their entire business model is at risk.

Some worry the bill is being rushed without enough review. Critics say it feels less about protecting the public and more about cutting out competition. They’re also concerned that vague wording could ban legit games or penalize long-standing, responsible businesses.

Senators Worry About Players Getting Caught in the Middle

The bill is picking up support, but some senators say they can’t fully commit until a few things are fixed. Right now, it includes fines of $25,000 and up to a year in jail for those tied to sweepstakes casinos, including operators, payment processors, advertisers, and technology providers.

However, lawmakers raised concerns about what happens to regular players who might use one of these platforms without knowing the rules. They’ve asked for the rules and use of language to be updated so that players aren’t penalized for just playing a game online. Regarding the bill, Valencia stated it isn’t aimed at single users. He’s given his word to mend it with changes in its next release. 

Card Rooms Now Support the Bill After Getting Reassurance 

At first, California’s legal card rooms opposed the bill, concerned that its broad wording might accidentally include them. After Valencia pledged to add language officially exempting card rooms, their stance began to shift. Many now tentatively support the bill, if that promise is kept.

Even with the committee vote behind it, Assembly Bill 831 still has a long road ahead. It must pass both the Public Safety and Appropriations Committees before reaching a full Senate vote. However, there is still work to be done, as lawmakers who supported it early on say their votes could change, depending on the final version.