Existing law prohibits specified unfair acts or practices undertaken or committed by any person in the operation of any contest or sweepstakes including, among other things, using or offering for use any method intended to be used by a person interacting with an electronic video monitor to simulate gambling or play gambling-themed games in a business establishment that directly or indirectly implements the predetermination of sweepstakes cash, cash-equivalent prizes, or other prizes of value, or otherwise connects a sweepstakes player or participant with sweepstakes cash, cash-equivalent prizes, or other prizes of value.

This bill would specify that using or offering for use any method, including an internet website or an online application, in the manner described above is prohibited, and would make conforming changes. The bill would delete the term “gambling-themed games” from the above-described provisions, and revise the description of “gambling” to include examples, such as lottery games, bingo, sports wagering, or any game that mimics or simulates similar gambling, as specified. The bill would make an unfair practice using or offering games of these types that use a system of payment that allows a person to play or participate in a simulated gambling program for direct or indirect consideration, as specified, and for which the person playing the simulated gambling program may become eligible for a prize or award, cash or cash equivalents, or a chance to win a prize or award, or cash or cash equivalents, in a business establishment, on the internet, or using an online application. The bill would specify that these provisions do not make a game that does not award cash prizes or cash equivalents unlawful.

Existing law makes it unlawful to engage in specified activities related to gambling, including, among others, (1) proposing or drawing a lottery, (2) dealing or playing certain games played with cards, dice, or any device for money, and (3) manufacturing, repairing, or owning slot machines. A violation of these prohibitions is a misdemeanor.

This bill would specify that these provisions do not make unlawful or otherwise restrict lawful games and methods used by a gambling enterprise licensed under the Gambling Control Act or operations of the California State Lottery. The bill would specify that these provisions do not make unlawful game promotions or sweepstakes conducted by for-profit commercial entities on a limited and occasional basis as an advertising and marketing tool that are incidental to substantial bona fide sales of consumer products or services and that are not intended to provide a vehicle for the establishment of ongoing gambling or gaming.