California Governor signs sweepstakes gambling ban into law

Legislation

Gov. Gavin Newsom has until Oct. 12 to sign off on Assembly Bill 831 after it passed in the state Senate. The bill would prevent online social casinos from offering free entries into sweepstakes draws for real money.

Typically, players are given free coins to play slot machine-type games when they log in, with the option to purchase more if they run out. Users are also given a second type of coins, called sweeps coins, which are also free but can be used for entries into the draws.

“It looks exactly like a slot machine, cause it functions just like a slot machine,” said Derek Brinkman, executive product adviser for Virtual Gaming World. “The reason that it’s a video game and not gambling is because you’re playing with gold coins, you’re not playing with real money.”

If the governor signs off on the bill, it would mean that companies like VGW can offer the free coins, but they would be banned from offering sweeps coins. Many tribal casinos in the state are hoping Newsom signs the bill, but Brinkman said it wouldn’t be fair since some of the tribal casinos offer a similar product.

“They have the opportunity to do sweepstakes the same way we do sweepstakes, where there are prizes of value that come from the sweepstakes promotions,” he said. “But instead of trying to compete with us, they’re just trying to write us out of the law.”

Morongo and Yaamava Casinos both support AB 831. The California Nations Indian Gaming Association said it is “proud to have stood at the forefront of the fight against illegal sweepstakes casinos, securing the passage of AB 831 with unanimous support in the California Legislature,” in a written statement to Spectrum News. “We look forward to Governor Newsom signing AB 831 into law, so consumers are protected from at least one form of unregulated and illegal gaming.”

RECOMMENDED