The California ban on sweepstakes casinos is inching ever closer to success. After AB 831 was overhauled last month to focus on the new style of gambling, it has gained quite a bit of support. Now, it’s passed another vote with no opposition.
The California Public Safety Committee voted to approve the bill in its current form 6-0, bringing the ban ever closer. As we’ve previously reported, various groups that represent the “social gaming” circle have now partnered with the American Civil Liberties Union (ACLU), alongside others. In a statement, the Social and Promotional Games Association (SPGA) said:
“The SPGA is proud to stand alongside the ACLU, the Association of National Advertisers, and other partners in voicing concerns about AB 83.
“This diverse coalition, including civil liberties advocates, leading businesses and industry groups, reflects a shared belief that the bill, as written, could have unintended consequences for lawful promotional practices without offering clear consumer protections.”
Groups push back on sweepstakes ban in California
While the SPGA and Social Gaming Leadership Alliance (SGLA) are concerned over the banning of sweepstakes casinos, other groups are backing the pushback due to its potential to ban actual sweepstakes. In an example on July 11, the SPGA pointed out that things like the recent Dr. Pepper promotional sweepstakes wouldn’t be allowed to run in the state.
However, the bill’s language does state that anything in paragraph 12, which mostly concerns sweepstakes casinos themselves, does not make games “unlawful” if it “does not award cash prizes or cash equivalents”.
As it stands, the consequence for running a sweepstakes casino in California if the bill were to pass is up to $25,000 in fines, starting at $1,000. It can also land you in jail for up to a year if caught operating.
Sweepstakes casinos have already been banned in New York and Connecticut. However, these bills specifically went after sweepstakes casinos, rather than the whole thing as a concept.
ReadWrite has reached out again for comment.
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