Bill > AB831

This bill aims to regulate online sweepstakes games and prevent certain gambling-like activities in California by making significant changes to existing law. The bill specifically prohibits operating, conducting, or offering online sweepstakes games that utilize a dual-currency payment system and simulate gambling activities like slot machines, video poker, table games, lotteries, bingo, and sports wagering. It makes it unlawful for various entities, including financial institutions, payment processors, and platform providers, to knowingly support such online sweepstakes games. Violations would be considered misdemeanors, punishable by fines ranging from $1,000 to $25,000, potential imprisonment in county jail for up to one year, or both. The bill explicitly does not apply to legitimate gambling enterprises licensed under the Gambling Control Act, the California State Lottery, or limited game promotions by commercial entities that are incidental to genuine product sales. The legislation is intended to target intentional online sweepstakes games that use complex payment systems to circumvent gambling regulations, while preserving legitimate marketing promotions and state-authorized gambling activities. The bill also includes provisions to ensure that ancillary service providers are not inadvertently penalized if they are not intentionally facilitating these online sweepstakes games.

Budget and Finance, Government Affairs, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB831