California's anti-sweepstakes bill under fire by SPGA
California's AB 831 Sparks Debate Over Social Sweepstakes Casinos
California's Assembly Bill 831 (AB 831) is causing a stir, proposing to ban the operation of online sweepstakes casinos that use a dual-currency model. If passed, the bill would target operators, payment processors, platform providers, and even affiliates or endorsers who promote these sweepstakes-style gambling platforms.
The Social and Promotional Games Association (SPGA), represented by the Social Gaming Leadership Alliance (SGLA), opposes AB 831. The SPGA argues that the bill could criminalize legitimate promotional businesses involved in free-to-play games, potentially cutting off Californian consumers from popular promotional games. The association also warns that the bill threatens to undermine an economic sector contributing to state revenue.
AB 831, if passed and signed into law, could constitute a major disruption, both economically and socially. The potential passing of the bill could result in making the operation of dual-currency sweepstakes platforms a misdemeanor, with penalties of up to $25,000 in fines and one year in county jail. Businesses that unknowingly support sweepstakes casinos—such as payment and service providers—could also face liability.
Everyday promotions, rewards apps, and marketing campaigns could face legal ramifications if AB 831 is passed. The SPGA contends that the idea of banning an entire category of digital promotions and entertainment is counterintuitive. The association continues to advocate for a public debate and for lawmakers to educate themselves about the facts of social sweepstakes casinos.
The SPGA claims that lawmakers have not acted in good faith, introducing last-minute amendments without stakeholder input, supporting data, or clear evidence of harm. Critics argue that AB 831 relies on vague language and fails to clearly define what a sweepstake game is. There is no specific evidence of harm provided to support the banning of sweepstakes and social casinos by AB 831.
The sweepstakes model is based on legal precedent and used by companies such as Starbucks, Microsoft, and Marriott. The SPGA urges California to focus on getting the facts straight and to call for a public debate before passing AB 831. The bill has received unanimous votes in Senate committees, but if passed fully, would effectively eliminate a growing segment of online social casino-style gaming operating under the current legal grey area.
California Attorney General, Rob Bonta, has argued that daily fantasy sports contests are a form of illegal gambling. However, the opposition to AB 831 is not limited to the SPGA. The bill is opposed by the state's governor, who is against blanket bans on entire sectors. The SPGA urges lawmakers to reflect on their actions and ensure California remains at the forefront of technology, rather than stifling innovation and economic growth.
In summary, the debate over AB 831 in California is far from over. The bill, if passed, could have significant economic and social impacts. The SPGA and other opponents argue that the bill is too broad and lacks clear evidence of harm, while supporters argue that it is necessary to protect tribal gaming interests and consumer safeguards. The battle for California's online gaming landscape continues.
The passing of AB 831 could impact multiple sectors, including the technology industry, as it targets online sweepstakes casinos. This bill, if enacted, could potentially disrupt businesses dealing with digital promotions and entertainment.
In the realm of finance, payment and service providers could face liability for unintentional support of sweepstakes casinos, as they may be associated with the operators or affiliates of these platforms.
