Vote Smart's Synopsis:

Vote to amend and pass a bill that prohibits the facilitation or usage of online sweepstakes games that utilize a dual-currency system in California.

Highlights:

• Establishes to protect individuals who unknowingly participate in online sweepstakes (Sec. 1).

• Specifies that failing to disclose information about the events is prohibited (Sec. 2A).

• Probits misleading information (Sec. 2A).

• Defines “direct considerations as means a coin, token, or other representation of value that may be purchased by a player or received through a bonus or promotion and that is used for playing or participating in a sweepstakes game.” (Sec. 2B).

• Defines indirect considerations as a means of a coin, token, or other representation of value that can be exchanged for a prize or chance to win a prize. It is provided as a free promotion with the purchase of a related product/ service. (sec. 2B).

• Defines sweepstakes as a procedure, activity, or event for the distribution of anything of value (sec. 2B).

• Exempts advertising plans or programs (sec. 2C).

• Prohibits individuals or organizations from conducting online sweepstakes games (Sec. 3).

• Prohibits individuals or organizations from directly supporting the operations of online sweepstake games (Sec. 3).

• Defines online sweepstakes as a game, contest, or promotion that is available via the internet, mobile phone, computers, or similar devices (Sec. 3C).

• Specifies that violation of the act is considered a misdemeanor, and punishable by a fine of $1,000-$25,000 or one year in jail. (Sec. 3D).

• Specifies that it does not make it unlawful to restrict lawful games under the Gambling Control Act (Sec. 3).

• Specifies that no reimbursement is required (Sec. 4).

Full Bill Text