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California bans online sweepstakes casinos using virtual coins for real prizes, backed by tribes to protect their gambling rights.
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.
Backed by Native American tribes, the law aims to protect their federally protected gambling rights and prevent unregulated competition.
Tribes, which have spent millions lobbying since 2015, argue these platforms mimic casinos without oversight or community benefits.
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.
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.
The outcome will shape California’s gambling landscape.
California prohíbe los casinos de sorteo en línea que utilizan monedas virtuales para premios reales, respaldados por tribus para proteger sus derechos de juego.