Plain English Breakdown
The official text does not specify an effective date in the provided metadata, though it is noted as enacted.
AB-831: Rules Against Online Gambling-Like Sweepstakes
This law bans running online games that simulate gambling and offer cash prizes, while protecting licensed casinos, the state lottery, and small marketing contests.
What This Bill Does
- Bans using websites or apps to run sweepstakes where people pay money for a chance to win cash or prize equivalents by simulating gambling.
- Removes the phrase 'gambling-themed games' and adds examples like lottery, bingo, sports betting, or any game that mimics similar gambling.
- Makes it illegal for banks, payment processors, geolocation providers, gaming content suppliers, platform providers, and media affiliates to knowingly support these banned online sweepstakes in California.
- Sets penalties of a fine between $1,000 and $25,000, up to one year in county jail, or both for anyone who breaks the new rules.
- Clarifies that games which do not award cash prizes or cash equivalents are still allowed under this law.
Who It Names or Affects
- People and companies that operate online sweepstakes games offering cash rewards by simulating gambling.
- Financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, and media affiliates that support these games.
- Licensed gambling businesses operating under the Gambling Control Act.
- The California State Lottery.
Terms To Know
- Misdemeanor
- A crime punishable by a fine or jail time of up to one year.
- Cash-equivalent prizes
- Rewards that can be exchanged for money, such as gift cards or store credit.
- Consideration
- Something of value paid to play a game, like buying an entry fee.
Limits and Unknowns
- The law does not ban games that do not offer cash or cash-equivalent prizes.
- For-profit businesses can still run occasional sweepstakes as advertising tools if they are tied to real product sales and not meant for ongoing gambling.
- Licensed casinos and the state lottery remain exempt from these new restrictions.