Key Points
Contents
- Proposed California legislation AB 2617 aims to prevent gambling and prediction market advertisements from reaching minors
- Platforms would need to authenticate user ages prior to access, with comprehensive compliance required by January 2028
- Each infraction could result in a $2,500 fine, while minors may pursue civil claims up to $1 million
- The proposal prohibits sponsored advertisements, influencer campaigns, and algorithmic promotion of betting content to those under 18
- Enforcement authority would be granted to the Attorney General and municipal attorneys to pursue legal action against offenders
California state representatives have proposed Assembly Bill 2617 aimed at preventing digital gambling platforms and prediction markets from marketing to underage users. Assemblymembers Pilar Schiavo and Rob Bonta jointly filed the measure.
The proposal emerges amid the swift expansion of prediction market platforms throughout the nation. These services have increasingly captured the attention of younger demographics via social media channels and digital marketing campaigns.
“My son doesn’t have to go looking for this predictive gambling content. It finds him, it finds his friends,” Bonta stated during Monday’s press briefing.
Bonta elaborated on how betting-related material is presented to attract youth interest. He noted it appears “dressed up to look like skill, like sports knowledge, like a fun way to earn a little money, not like gambling.”
The measure references studies indicating that over one-third of males between ages 11 and 17 have engaged in gambling activities within the previous twelve months. Legislators emphasize that premature exposure correlates with heightened impulsive tendencies and potential long-term financial harm.
According to the proposed statute, gambling website operators and prediction market providers must authenticate the ages of their user base. Additionally, they would be obligated to limit promotional content directed at individuals younger than 18.
Platform Obligations Under the Proposed Law
Prior to January 1, 2028, businesses must refrain from providing gambling access to minors when user age information is already available. Following that deadline, operators will be mandated to actively authenticate that users have reached age 18 before permitting platform entry.
The promotional limitations encompass paid advertising, influencer-based marketing, and content distribution driven by algorithms. These tactics would all be prohibited when directed toward underage audiences.
Businesses that gather age authentication information must permanently erase it immediately following verification. This data cannot be utilized for promotional purposes or behavioral profiling.
Infractions would be classified as unfair business practices under state law. Each separate violation would incur a $2,500 monetary penalty.
Minors subjected to unlawful gambling content exposure may file civil claims seeking damages up to $1 million. Legal guardians or parents are also authorized to pursue such claims on minors’ behalf.
Implementation Authority and Expected Resistance
The measure grants implementation authority to the state Attorney General and city prosecutors. These officials could initiate civil proceedings against violators, pursue financial penalties, secure injunctions, and reclaim legal expenses.
The Attorney General must establish implementing regulations by July 1, 2027. These rules will address age verification standards and may incorporate narrow exemptions aligned with minor protection objectives.
The bill does not authorize online gambling or prediction markets within California. It exclusively establishes protective measures shielding minors from gambling-related content exposure.
Common Sense CEO James Steyer predicted the measure would advance through the legislative process but cautioned about anticipated industry resistance. “They will lobby, lobby, lobby, and do every technique they know up in Sacramento to block this legislation,” Steyer remarked.
