- California Governor Gavin Newsom signed bill AB 831 this week, banning sweepstakes contests like casinos and sportsbooks.
- It does not change anything regarding real money and free casinos and sports betting sites in California.
SACRAMENTO, Calif. – Dual-currency sweepstakes gambling sites are no longer legal in California due to Gov. Gavin Newsom signing bill AB 831. This bill prohibits sweepstakes-style casinos and sports betting sites in California.
The bill does not affect the status of legal sports betting sites in California or real money online casinos in the state either.
Member Avelino Valencia created Assembly Bill 831. The bill passed through all levels of the California legislature unanimously.
What Does A Ban On Sweepstakes Contests Accomplish In California?
The main point from AB 831 that people need to know is that the bill does not affect the legal status of any real money gambling sites in California.
“This bill would make it unlawful for any person or entity to operate, conduct, or offer an online sweepstakes game, as defined, in this state. The bill would make it unlawful for any entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly and willfully support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within this state. The bill would make a person who violates these provisions guilty of a misdemeanor punishable by a fine not less than $1,000 nor more than $25,000, or by imprisonment in the county jail not exceeding one year, or by both the fine and imprisonment.”
As the bill states, it bans the operation and participation in any contest or sweepstakes platform offering any casino-style games or sports betting odds that result in payouts that include cash prizes or cash equivalents. Offshore gambling platforms that offer legal real money casinos and legal sports betting sites are still available, while state-regulated platforms like DraftKings and FanDuel are still not available.
The original version of the bill failed to specify that the California State Lottery games and standard sweepstakes promotions were legal. The Senate amended the bill to clarify those potential issues.
