The California bill to ban sweepstakes casinos has been met with opposition from the Social & Promotional Games Association (SPGA). The SPGA has been on a campaign to urge lawmakers not to ban the new form of gambling, which some states, like New York, want to rid themselves of, as it circumvents gambling laws.
This comes as California lawmakers voted 10-0 on the bill, with it sent to the Public Safety Committee for the next steps.
Part of the SPGA’s argument stems from stunting “innovation”. The SPGA uses California’s typically left-leaning agenda in its politics as an argument, claiming that it’s “always been the state of “more”: more freedom, more innovation, more discovery, more opportunity.”
The body states that the bill would curb this, leading to a “less open, less creative, less bold” environment. In the SPGA’s letter, it also states that the bill is “Too Vague, Too Rushed, and Too Risky”.
A majority of the SPGA’s argument is that there’s no data to support some of the arguments made, including harm to citizens. A recent lawsuit against Stake.us and its sweepstakes casinos was sent to arbitration.
As the bill is ushered forward by lawmakers, California Senators agree with critics that language inside the bill needs to be clarified. It has found support from the state’s tribal nations, who see the bill as protecting the legal commitments by the state.
California moves forward with overhauled sweepstakes casino bill
California’s bill, AB 831, was completely overhauled last month after being temporarily put on ice. The bill was rewritten to target key areas that sweepstakes casinos rely on to operate. This includes the dual currency system, which they employ, often dubbed “gold” and “sweep” coins, with sweep coins being used for cash games.
Part of the concern around sweepstakes casinos is that they’re often operated offshore. This means that not only do these casinos not employ regulations to protect their players, but they will also avoid regulations set by each state in the US. In New York, a lack of tax payment, thanks to the loophole of it technically not being gambling, was highlighted, too.
On top of the targeting of key operational points for the sweepstakes casinos, California is also ensuring that simulated gambling cannot happen. It specifically mentions that emulating machines like slots, video poker, or table games, among others, cannot be used.
The proposed fine is $25,000, with a potential year in jail if caught running these websites after the bill passes.
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