California lawmakers revised Assembly Bill 831 for the third time on September 3. The Senate sent the anti-sweepstakes legislation back for a second reading after confusion arose about corporate promotions.
The Social and Promotional Games Association (SPGA) raised concerns on social media. They warned that a Make-A-Wish Foundation promotion might be illegal under the bill’s original text.
Several major groups back different sides of this fight. The Yuhaaviatam of San Manuel Nation and California Nations Indian Gaming Association (CNIGA) support AB 831. But Virtual Gaming Worlds (VGW) and the Kletsel Dehe Wintun Nation oppose it.
Why Corporate Promotions Needed Protection
The original bill language was too broad. It could have made routine corporate giveaways illegal by accident.
Companies like McDonald’s and Starbucks run promotional sweepstakes regularly. These are standard marketing tools, not gambling operations. But the bill’s wording didn’t clearly protect them.
Lawmakers needed to separate legitimate business promotions from actual sweepstakes gambling sites. The distinction matters for enforcement and compliance.
What Changes Were Made to AB 831
The revised bill now protects corporate promotions explicitly. It allows “game promotions or sweepstakes conducted by for-profit commercial entities on a limited and occasional basis as an advertising and marketing tool.”
These promotions must be “incidental to substantial bona fide sales of consumer products or services.” They can’t be designed as ongoing gambling vehicles.
The bill also protects California State Lottery operations. Licensed operators under the Gambling Control Act won’t face restrictions either.
Most importantly, the law now targets only operators who “knowingly and intentionally” run online sweepstakes with dual-currency systems.
How This Reshapes Sweepstakes Enforcement
The amendments create clearer enforcement guidelines. Regulators now have specific criteria for what constitutes illegal sweepstakes operations.
Corporate America gets breathing room for standard promotional campaigns. But sweepstakes gambling sites face targeted restrictions.
The dual-currency language is key. It focuses on operators using complex systems that blur the line between promotional gaming and actual gambling.
AB 831 still needs to pass its second reading. Then it goes back to the Assembly for final approval.
The Superior Court of California recently denied four motions from High 5 Entertainment in a related sweepstakes dispute. This shows courts are already dealing with these gray areas.
The bill’s supporters hope the clarifications will help it advance. Opposition groups may still challenge the revised language.
