Summary
- With a decisive 36-0 vote, the California Senate boldly passed a bill aimed at banning sweepstakes casinos.
- The proposal is poised on the brink of becoming law, awaiting the essential approval from the Assembly and the governor's decisive signature.
- Tribal nations stand unified in their opposition to the proposal, passionately asserting that the bill threatens to break a crucial lifeline essential to their people and communities.
Amidst the high stakes involving millions in gaming and tax revenue, California's Senate has taken a decisive step. Despite mounting opposition, the Senate came together in a powerful, unified decision, passing AB 831 with a sweeping 36-0 vote. This significant bill aims to ban sweepstakes casinos, marking a pivotal moment for the state's gaming landscape earlier this week.
The anti-sweepstakes bill gained significant traction
California isn’t alone in its scrutiny of sweepstakes casinos, which offer entertainment eerily similar to online casino games. New York, for instance, has already moved a similar proposal through its legislative chambers, needing only the signature of Gov. Kathy Hochul to become law. Meanwhile, New Jersey also joined the movement with its own anti-sweepstakes legislation this summer. Should California lawmakers pass AB 831, the state would be the latest to crack down on these online sweepstakes casinos. Since AB 831 involves amending existing legislation instead of creating new laws, it was swiftly advanced to the Senate, where it garnered robust support with 36 votes in favor and none against. Having cleared the Senate, the bill is now back in the Assembly, awaiting approval from the Governmental Organization Committee. If it passes, AB 831 will need a majority vote before landing on Gov. Gavin Newsom’s desk for his signature to officially become law.
Opposition against AB 831 unites
Although AB 831 has seen eleventh-hour tweaks, softening its approach toward sweepstakes by charitable groups and non-gaming companies, a wave of dissent is swelling. On Monday, the Social Gaming Leadership Alliance (SGLA) issued a powerful statement, revealing a coalition of four tribal nations standing against what they describe as hasty and flawed legislation that threatens to stifle economic prospects for tribes facing financial hardships. The Sherwood Valley Rancheria of Pomo Indians, Kletsel Dehe Wintun Nation, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria have all voiced their opposition to AB 831. The SGLA contends that the proposed law would restrict opportunities for less affluent tribes by outlawing legitimate online social games that utilize sweepstakes. Furthermore, the Alliance emphasized: This bill threatens over $1 billion in current economic activity generated by this industry in California, and would block a promising new stream of revenue for the state through progressive regulation and taxation. Eric Wright, Tribal Administrator of the Kletsel Dehe Wintun Nation and CEO of the Kletsel Economic Development Authority, underscored the urgency, stating that digital commerce is not a mere convenience, but a crucial lifeline for communities often overlooked and isolated. He cautioned that if AB 831 were to pass, it would cut off this vital connection, stripping tribes and their communities of critical development opportunities.
