California's Assembly Bill 831 (AB 831), which seeks to prohibit sweepstakes-style casinos and daily fantasy sports, has advanced to its final stage after clearing another legislative hurdle.
On 12 September, the bill was approved by the Assembly Governmental Organization Committee in Sacramento, with 20 votes in favour, none against and two abstentions.
The unanimous support follows a 36-0 Senate vote earlier in the week.
The measure will now proceed to the full Assembly, where all 80 members will cast their votes.
AB 831 has followed an unusual "gut-and-amend" path, replacing provisions of a pre-existing bill rather than introducing entirely new legislation.
This expedited process enabled the proposal to be considered in the Senate before reaching the Assembly.
The bill has so far received strong cross-party support. Its proponents argue that it will clarify the state's stance on online gaming by outlawing sweepstakes-style casino products and DFS contests, which California Attorney General Rob Bonta said in July meet the definition of sports betting and are therefore illegal.
Industry opposition has been led by the Social Gaming Leadership Alliance (SGLA) and the Social and Promotional Games Association (SPGA), which claim the bill risks unintended consequences for legitimate promotional campaigns and freemium entertainment models.
Some tribal representatives have also expressed concern, though most tribes support the legislation as a measure to protect their established gaming operations.
Should the Assembly approve the bill, it will be sent to Governor Gavin Newsom. While the governor has not yet taken a public position, campaigners for the legislation remain optimistic about its passage into law.
While the regulatory future of sweepstakes gaming within the US looks more and more precarious, prediction markets appear to be faring far better
