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flag California bans online sweepstakes casinos using virtual coins for real prizes, backed by tribes to protect their gambling rights.

flag California lawmakers have passed AB 831, a bill banning online sweepstakes casinos that use virtual coins for gameplay and redeemable sweepstakes coins for real prizes. flag Backed by Native American tribes, the law aims to protect their federally protected gambling rights and prevent unregulated competition. flag Tribes, which have spent millions lobbying since 2015, argue these platforms mimic casinos without oversight or community benefits. flag The bill, if signed by Governor Newsom, would impose criminal penalties including up to a year in jail and $25,000 fines on companies, payment processors, and affiliates. flag Opponents, including gaming firms and the ACLU, say the model isn’t gambling since players don’t risk real money and question the need for new criminal laws. flag The outcome will shape California’s gambling landscape.

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