Lawmakers in California have introduced legislation that aims to reduce the rise in minors participating in gambling-like activities. This includes traditional online gambling, including casino games, sports betting, and prediction markets wagering. 

Assembly members Mia Bonta and Pilar Schiavo amended AB2617, which had been a bill related to the regulation of cannabis, to rename it the “Protecting Kids from Online Gambling Act.”

Schiavo said the act aims to curb the rise in teenage gambling, which she claims is being encouraged by gambling companies and prediction market platforms. 

“You can call it whatever you want, but when people are risking real money on outcomes of events, that’s gambling,” said Schiavo. “These multi-billion dollar corporations are, in fact, grooming our kids for to be gamblers for life.”

Tough Act or Acting Tough?

The bill, if passed, would prohibit companies from making online gambling activities or predictive market wagering available to minors. California law already prohibits most forms of online gambling, with the state passing a ban on sweepstakes casinos last year. 

In addition, Assemblywoman Bonta’s husband, Rob Bonta, who serves as the state’s Attorney General, issued an opinion declaring DFS illegal in California last year. 

Prediction markets are already limited to over-18-year-olds, and the bill says it will enforce that from 2028. 

In addition, operators must not advertise online gambling or prediction markets to minors. 

While this is not explicitly illegal, the state does have broad consumer protection and youth protection laws. These should already allow prosecutors to bring legal action against companies it deems to be promoting illegal services to minors. 

Nevertheless, the legislation says, “Establishing clear guardrails, including age-based restrictions and platform accountability measures, is necessary to reduce early exposure and mitigate the risk of future gambling-related harm.”

Gaming Blamed For Rise In Underage Gambling

The legislation cites research that indicates “36 percent of boys 11 to 17 years of age, inclusive, report engaging in gambling or gambling-related activities in the past year, with older teen boys reporting even higher rates.”

This research was conducted by Common Sense Media, which supports the act. The nonprofit published its data in January. 

Founder and CEO James P. Steyer blamed video games and social media for the growth in underage gambling. 

He stated: “Boys are gambling from a very early age. Through the games they play, the social media platforms they use every day, and their friends, gambling has become a fact of many boys’ day-to-day lives—and often in ways parents may not recognize.”

Lobby Groups and Lawmakers Set For Legal Battles

Steyer said he was “very optimistic” the group would be able to pass the legislation, despite what he bet would be strong and well-financed opposition. 

Of gambling companies and prediction market platforms, he said: “They will lobby, lobby, lobby, and do every technique they know up in Sacramento to block this legislation.”

With video game developers in his wife’s crossfire, AG Bonta may follow his counterpart in New York and take legal action against companies such as Valve. New York AG Letitia James filed a lawsuit against the company. Valve rejects the accusations that its games encourage gambling. 

Mia Bonta said her and her husband’s actions are designed to protect their children and other Californian families. 

She stated: “My son doesn’t have to go looking for this predictive, predictive gambling content. It finds him, it finds his friends. It’s dressed up to look like skill, like sports knowledge, like a fun way to earn a little money, not like gambling.”