Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioCalifornia Governor Gavin Newsom may opt not to sign a bill banning sweepstakes casinos due to his aspirations to become President, says the Indian Gaming Association (IGA).
Victor Rocha, conference chairman for the IGA, said Newsom does not want to anger young voters who could be key to his future ambitions.
Speaking on the New Normal webinar, Rocha said, “He wants to be president, so he doesn’t want to [anger] the 18-35 demographic.”
However, Rocha believes that rather than vetoing the legislation, Newsom is likely to take a “no action” stance, which would lead to the ban becoming law.
Bill AB 831 is awaiting Newsom’s signature after being passed by lawmakers in California last week. The Governor has yet to make his opinion on the legislation clear and has not made any public comments about sweepstakes casinos.
Newsom Opposed Negative DFS Opinion, May Do Same With Sweepstakes
Newsom has precedent in opposing state officials when it comes to popular forms of gambling. The Governor distanced himself from Attorney General Rob Bonta‘s opinion that DFS games are illegal under California state law.
Bonta issued the opinion in July, which led to Newsom’s spokesperson Izzy Gardon commenting, “The attorney general, in his independent capacity, issued this opinion — not the governor’s office.
“While the governor does not agree with the outcome, he welcomes a constructive path forward in collaboration with all stakeholders.”
Bonta does not appear to have given much value to the comments and followed up with a warning to DFS operators that they will face enforcement action. In response, DFS operators have pulled back from California. PrizePicks and Underdog both withdrew their against-the-house games from the state.
Many Sweepstakes Exiting California, While Some Fight to Stay
Similarly, even without Newsom’s signature, sweepstakes casinos are exiting California. Carnival Citi is the latest operator to restrict access for California players. Several game developers, including Playtech, Pragmatic Play, and Evolution, have also withdrawn games from platforms such as Stake.us in the state.
The Social Gaming Leadership Alliance (SGLA) continues to lobby for sweepstakes casinos in California, however. The advocacy group, led by VGW, merged with the Social and Promotional Games Association (SPGA) and has called on Newsom to veto the bill.
Jeff Duncan, the SGLA’s executive director, said in a statement, “We implore Governor Newsom to veto this bill and instead open the door for online social games to support economically disadvantaged tribal nations and the state’s economy while positioning California as a leader in next-generation gaming technology.”
VGW has also partnered with tribal groups in an attempt to dissuade Newsom from approving the legislation. The operator behind Chumba Casino, LuckyLand Slots, and Global Poker, announced a partnership with the Kletsel Dehe Wintun Nation of the Cortina Rancheria tribe.
Rocha and the IGA are firmly in favor of the ban, however. And despite believing Newsom may not actively sign the bill, Rocha strongly believes sweepstakes casinos will be outlawed in the state.
He posted on X that, “There is no scenario where the sweepstakes gambling industry survives California.”
