A coalition of groups in California has come out against Assembly Bill 831, a measure that is aimed at tackling illegal gambling but which critics say could outlaw sweepstakes and promotions.
Key Takeaways
- The SPGA has announced that several organizations are opposed to Assembly Bill 831, which aims to ban sweepstakes gambling.
- Companies in the group include the American Civil Liberties Union and the Association of National Advertisers.
- Despite the pressure, lawmakers recently passed Assembly Bill 831 through a Senate committee.
The opposition, led by the organization representing sweepstakes companies, the Social and Promotional Games Association (SPGA), includes the American Civil Liberties Union (ACLU), the Association of National Advertisers, and other organizations.
AB 831 has drawn criticism for its broad language, which critics argue could inadvertently ban certain legal marketing activities, and has attracted united opposition.
“The SPGA is proud to stand alongside the ACLU, the Association of National Advertisers, and other partners in voicing concerns about AB 831. 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,” said an SPGA spokesperson.
Opponents are asking lawmakers to reconsider the bill to ensure it doesn’t inadvertently harm legitimate promotions, including branded sweepstakes.
AB 831 advances despite mounting criticism
Despite vocal resistance, the legislation continues to gain ground. The California State Senate’s Standing Committee on Public Safety passed an amended version of Assembly Bill 831 with a vote of 6-0.
“In recent years, online sweepstakes casinos have increased in popularity by exploiting ‘no purchase necessary’ and using dual currency models to exploit a gray area in the law. To be clear, players are able to convert these winnings to actual cash, and that's the issue,” said the bill’s sponsor during the committee meeting.
Paragraph 12 of the bill states that games that do not award cash prizes or cash equivalents will not be outlawed. Critics argue that the bill’s language is too vague to provide enough protection. It also includes penalties of up to $25,000 in fines and a year in jail.
Daily fantasy sports declared illegal by California Attorney General
At the same time AB 831 is being debated, Attorney General Rob Bonta has issued a legal opinion stating that daily fantasy sports (DFS) are illegal under current state law.
His 33-page ruling, which was released at the request of state lawmakers, concludes that DFS is a form of gambling, not skill, and so violates California’s long-standing gambling ban.
The ruling comes amid arguments between tribal gaming interests and online platforms. The California Nations Indian Gaming Association (CNIGA) argues that DFS is equivalent to sports betting and should be permitted only on tribal lands. However, the Coalition for Fantasy Sports asserts that DFS is a skill-based game and is exempt from the current rules.
