Key Takeaways
- Assembly Bill 2617 in California aims to prohibit gambling platforms and prediction markets from marketing to individuals under 18
- Age verification systems must be implemented by platforms, with comprehensive compliance required starting January 2028
- Each infraction could result in $2,500 penalties, while affected minors may pursue civil claims up to $1 million
- Prohibited marketing tactics include sponsored advertisements, influencer partnerships, and algorithmic content targeting
- Enforcement authority would be granted to California’s Attorney General and municipal attorneys through civil action
California state legislators have put forward Assembly Bill 2617, designed to prevent gambling websites and prediction market operators from marketing their services to young people. Assemblymembers Pilar Schiavo and Rob Bonta jointly sponsored the measure.
The proposed legislation arrives amid substantial expansion of prediction market platforms nationwide. Social media channels and digital advertising have increasingly exposed younger demographics to these services.
“My son doesn’t have to go looking for this predictive gambling content. It finds him, it finds his friends,” Bonta said during a news conference on Monday.
Bonta highlighted how gambling platforms present their offerings in ways that resonate with youth. He noted the content is “dressed up to look like skill, like sports knowledge, like a fun way to earn a little money, not like gambling.”
The legislation references studies indicating over one-third of male adolescents between 11 and 17 years old engaged in gambling activities within the previous year. Legislators emphasize that youth exposure correlates with impulsive tendencies and potential long-term financial harm.
The proposed regulations would mandate that gambling site operators and prediction market companies implement age verification protocols. Marketing efforts directed at anyone younger than 18 would also face restrictions.
Platform Compliance Requirements Under AB 2617
Prior to January 1, 2028, businesses must refrain from providing gambling access to minors when age information is available. Following that deadline, operators must implement proactive age confirmation measures to ensure users meet the 18-year minimum before accessing services.
Marketing limitations encompass sponsored content, partnerships with social media influencers, and automated algorithmic promotion. These approaches would be prohibited when directed toward underage audiences.
Any age-related data gathered during verification processes must be permanently removed immediately after its intended use. This information cannot be retained for promotional purposes or customer analytics.
Infractions would fall under California’s unfair competition statutes. Individual violations would incur $2,500 fines.
Minors experiencing harm from unauthorized gambling content exposure may file civil claims seeking damages up to $1 million. Legal guardians retain the right to initiate such claims on behalf of affected young people.
Implementation Authority and Industry Pushback Expected
The legislation allocates enforcement responsibility to California’s Attorney General and city-level prosecutors. These officials could initiate civil proceedings against non-compliant entities, pursue financial penalties, request court-ordered compliance measures, and recover legal expenses.
The Attorney General must establish formal regulations by July 1, 2027. These rules will establish age verification standards and may permit narrow exemptions aligned with minor protection objectives.
AB 2617 does not authorize online gambling or prediction markets within California. The bill exclusively establishes protective measures limiting minor exposure to gambling-related content.
Common Sense CEO James Steyer anticipates the measure will advance but cautioned about significant industry resistance. “They will lobby, lobby, lobby, and do every technique they know up in Sacramento to block this legislation,” Steyer said.
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