A California bill, Assembly Bill 831, has been entirely overhauled after it was put on ice after passing earlier this year. Originally designed to provide extra time on compacts (like a contract) between the state and tribes, it has now become a cruise missile against sweepstakes casinos.
Sweepstakes casinos have become a thorn in multiple states’ sides since becoming a favorite of gamblers in the US. While there are presumably tax-related reasons attached for wanting to ban, a big reason is that it is hard to regulate. New York has cited that one of its reasons for seeking a ban is that it targets minors.
The revamped bill, backed by the California Nations Indian Gaming Association (CNIGA) and redone by Assemblymember Avelino Valencia, is a thorough, all-bases-covered styled bill aimed at eliminating them from the state entirely.
A big issue with sweepstakes casinos is that there’s a complete lack of limitations for those prone to addiction. Sweepstakes casinos operate with a dual digital currency system. Gold coins allow for “free play” and aren’t worth anything, but with every purchase, “sweep coins” are bundled in, which usually equal a dollar in value and are used for money games. There’s no purchase limit, leading to massive amounts of cash lost to it.
California lays out consequences for running sweepstakes
California’s renewed bill immediately goes after the neck of sweepstakes casinos by banning platforms that would run a dual currency system. There’s a maximum $25,000 fine and a potential year in jail if caught. It also cuts any chance of using simulated casino games, including:
- Slot machines
- Video poker
- Table games
- Lotteries
- Bingo
- Sports wagering
It also prevents almost anyone or any entity from participating in sweepstakes casinos. This doesn’t just refer to the person or operator, but also to the payment processors and anyone else along the chain that could facilitate the casino’s operation within the state.
