With millions in gaming and tax revenue at stake, the Senate in California recently passed important legislation.
Despite the growing opposition, the Senate unanimously passed AB 831, a bill proposing to ban sweepstakes casinos, in a 36-0 vote earlier this week.
The anti-sweepstakes bill gained significant traction
California isn't the only state that has scrutinized the popular sweepstakes casinos, offering entertainment that closely resembles some online casino games.
A similar proposal has already made its way through New York's legislators and the only thing stopping it is a signature required by Gov. Kathy Hochul.
At the same time, this summer, New Jersey also passed similar anti-sweepstakes legislation.
In case lawmakers in California approve AB 831, the state would become the latest to take action against sweepstakes casinos.
Considering that AB 831 wasn't entirely new bill text but rather involved changes to existing legislation, it was fast-tracked to the Senate.
There, as noted, the proposal received overwhelming support with 36 votes in favor and zero in opposition.
After passing that vote, the bill has now returned to the Assembly, where it will seek a green light from the Governmental Organization Committee.
In case this approval is granted, AB 831 would have to receive a majority vote in approval before reaching the desk of Gov. Gavin Newsom for a final signature before being implemented into law.
Opposition against AB 831 unites
While AB 831 has gone through last-minute amendments, softening its language for sweepstakes promotions by charitable organizations and non-gaming companies, opposition against the bill is growing.
On Monday, the Social Gaming Leadership Alliance (SGLA) released a statement highlighting that members of four tribal nations have united against "flawed, rushed legislation that would limit economic opportunities for economically challenged tribes."
Opposing AB 831 are members of the Sherwood Valley Rancheria of Pomo Indians, Kletsel Dehe Wintun Nation, the Mechoopda Indian Tribe of Chico Rancheria and Big Lagoon Rancheria.
The SGLA argued that the legislation would result in limitations for less wealthy tribes by "banning legitimate online social games using sweepstakes promotions."
Moreover, the Alliance wrote: "It would also eliminate more than $1 billion of existing economic activity generated by the industry in California, and close off a potential new revenue source for the state via sensible, modern regulation and taxation."
Eric Wright, Tribal Administrator of Kletsel Dehe Wintun Nation and CEO of Kletsel Economic Development Authority, recognized that digital commerce opportunities are not a luxury but a lifeline for communities that have been overlooked and geographically isolated.
He warned that the passing of AB 831 would sever this lifeline, removing opportunities for tribes and their communities.
