Panel advances bill targeting online sweepstakes platforms that mimic casinos

AB 831, carried by Assemblymember Valencia, would bar online sweepstakes platforms that use dual currency models and permit cash‑equivalent payouts from operating in California. Sponsors and tribal leaders said such platforms effectively replicate casino gaming outside the state’s gaming compact and lack adequate consumer protections, anti‑money‑laundering safeguards and oversight.

Johnny Hernandez, vice chairman of a sponsoring tribe, and Isaiah Vivanco, chairman and treasurer for a tribal organization, testified that tribal gaming is highly regulated, creates local economic benefits and that unregulated sweepstakes sites—often linked to offshore entities—circumvent those systems and create risks for consumers and youth.

Opponents, including representatives of social casino and sweepstakes platforms, said the bill would sweep away long‑standing lawful sweepstakes and social gaming businesses that operate with separate legal structures, including ‘‘social casino’’ products sold by California‑based firms. Witnesses warned of job losses and urged more time for study and stakeholder negotiation; several card‑room and tech stakeholders sought carve‑outs and said they were working with the author on amendments.

The committee recorded a roll call and advanced AB 831 to the Public Safety Committee; the final tally recorded 14 ayes and 0 no votes.