Legislation in California has successfully approved a bill that forbids sweepstakes
California Gaming Alliance Urges Veto of AB 831
California's Social Gaming Leadership Alliance (SGLA) has appealed to Governor Gavin Newsom to veto AB 831, a bill that, if signed into law, would prohibit crazy games that allow players to purchase 'sweepstakes coins' or other types of sweepstakes currency, which can be used to win prizes, awards, cash, or cash equivalents. The bill, which was unanimously approved by the California Assembly, is now on Newsom's desk for consideration.
Introduced by Assemblymember Avelino Valencia, AB 831 aims to ban games that resemble crazy games in California. The bill also targets games that simulate gambling or play a gambling-themed game, such as slot machines, video poker, casino-style table games such as blackjack, roulette, craps, and poker.
The SGLA, an organisation that represents the digital gaming industry, argues that AB 831 would worsen economic disparities among California tribes and put California at the back of the line in terms of digital innovation in the games space. They contend that the bill would strip $1 billion from California's economy annually.
The SGLA also suggests that the bill would take away a popular form of entertainment for California residents and cause the state to miss out on at least $200 million to $300 million in annual revenue from regulation and taxation of the games industry.
Several California tribes have spoken out against the bill, including the Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria.
The Senate amended the bill on September 3 to specify that it will not criminalize state lottery games or traditional sweepstakes promotions. However, the bill would prohibit games that simulate gambling or play a gambling-themed game, such as slot machines, video poker, casino-style table games such as blackjack, roulette, craps, and poker.
AB 831 was originally dealing with tribal state gaming compacts but was overhauled in late June to address dual-currency online sweepstakes games. The bill outlines potential fines and punishments for those who offer the prohibited games, making a violation 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.
The SGLA requests Governor Gavin Newsom to veto and abandon the passed law due to concerns related to the policy or political issues connected to it. However, specific details about their request or argument were not found in the provided search results.
The fate of AB 831 now lies with Governor Newsom, who has until October 10 to sign, veto, or allow the bill to become law without his signature.
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