Deputy Editor
A bill seeking to ban sweepstakes poker and casino sites in California has advanced to the Senate floor with a unanimous “Do Pass” recommendation from the Appropriations Committee. The Committee voted 7-0 in favor of the bill and returned it to the full Senate for its third reading and, potentially, a final vote. Despite having an Assembly bill number, the legislation would still need to return to the Assembly for approval even if it passes in the Senate.
The continued progress of the bill (AB 831) puts the future of popular poker sites such as ClubWPT Gold and Global Poker in doubt. Several other states have passed similar legislation this year, most recently New Jersey.
At least one partisan industry member pushing for the bill’s passage is declaring an early victory.
“AB 831 will be passed and signed,” Victor Rocha, conference chair of the Indian Gaming Association, wrote on X. “I am 100% certain.”
“I still get chills thinking about how we’re shutting down a multibillion-dollar gambling racket in less than a year.”
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AB 831 Gains Quick Passage After Suspense File Limbo
Although AB 831 had made fairly swift progress — it hasn’t received a single “no” vote in its legislative lifespan — it ran into a potential stumbling block in August. Though a committee passed the bill, it placed it in the suspense file. It could have withered and died there, but a Friday run through the suspense file bills saw it quickly advance to the Senate floor.
The suspense file serves as a holding ground for bills that have significant fiscal ramifications. If bills fail to emerge from there during “Suspense Day,” they’re effectively dead.
AB 831 seeks to ban sweepstakes sites that “simulate casino-style gaming,” with poker specifically mentioned as such a game. For a time, about a decade ago, there was a push by California card rooms to establish legal, regulated online poker in the state. However, gambling expansion has proven difficult in California’s political landscape, and sweepstakes operators have been trying to fill the void.
The legislation began as an unrelated Assembly bill before the Senate amended it to set its sights on the sweepstakes gaming industry.
California’s tribal gaming groups, which hold significant lobbying power, have mostly supported the bill. A few have voiced dissent, including at least one that announced a partnership with VGW Holdings, owners of Global Poker.
Sweepstakes Poker Still Available, But For How Long?
In some states where legal headwinds have arisen, sweepstakes gaming companies have beaten a quick retreat. Not so in California, despite Rocha’s proclamations. ClubWPT Gold and Global Poker still accept California players, as it’s too big a market to abandon without a fight.
The available player pool for these sites has already taken a major hit this year, with New Jersey passing a ban and New York’s Attorney General initiating a crackdown. As the most populous U.S. state, California would represent the biggest possible hit to these sites’ bottom lines.
Rocha said he expects the sites to stick around but offer only free-to-play games without prizes if the “sweeps” business model is outlawed.
The California legislature will remain in session for the next two weeks. Sep. 12 is the last day for bill passage. So, California poker players patronizing the sweepstakes sites should have some news soon about the future availability of these operators.
Image credit: Ken Lund/Flickr (license)
