Key Highlights
- Assembly Bill 2617 seeks to prevent gambling platforms and prediction markets from directing advertisements toward underage users
- Platforms would need to implement age verification systems, with comprehensive compliance mandated by January 2028
- Each violation would result in a $2,500 fine, while affected minors could pursue civil claims up to $1 million
- Prohibited marketing tactics include sponsored content, influencer partnerships, and algorithmic targeting of individuals under 18
- Enforcement authority would extend to both the Attorney General and municipal attorneys through civil proceedings
Assemblymembers Pilar Schiavo and Rob Bonta have put forward Assembly Bill 2617 in an effort to prevent gambling websites and prediction market operators from marketing to children. The proposed legislation addresses growing concerns about youth exposure to betting platforms.
The timing of this legislative push coincides with the explosive expansion of prediction markets nationwide. These services have increasingly reached younger demographics through strategic social media campaigns and digital marketing efforts.
“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 explained how gambling platforms present their content in ways that resonate with young audiences. According to him, the material is “dressed up to look like skill, like sports knowledge, like a fun way to earn a little money, not like gambling.”
The proposed measure references studies indicating that over one-third of male youth between ages 11 and 17 participated in gambling activities within the previous year. Legislators emphasize that premature engagement with gambling fosters impulsive decision-making and creates lasting financial vulnerabilities.
The legislation would mandate that gambling site operators and prediction market companies authenticate user ages. Additionally, these businesses would be prohibited from deploying advertising campaigns aimed at anyone below the age of 18.
Platform Obligations Under Proposed Law
Prior to January 1, 2028, companies must refrain from providing gambling access to minors when the user’s age is already known. Following that deadline, operators will be obligated to actively authenticate that users have reached their 18th birthday before permitting platform access.
The advertising prohibitions encompass purchased advertisements, influencer collaborations, and algorithmically-targeted content distribution. These promotional methods would all be forbidden when directed at underage audiences.
Any age verification information collected by companies must be permanently erased immediately following its verification purpose. This data cannot be retained for marketing initiatives or behavioral profiling activities.
Non-compliance would constitute unfair business practices under state law. The financial penalty stands at $2,500 for each individual infraction.
Young people who suffer harm due to unlawful gambling content exposure may file civil lawsuits seeking damages up to $1 million. Legal guardians retain the right to initiate such claims on their minor children’s behalf.
Implementation Authority and Expected Pushback
The proposed law empowers both the California Attorney General and city-level prosecutors to take action. Their enforcement capabilities would include filing civil lawsuits, pursuing monetary penalties, requesting court orders to stop violations, and recovering legal expenses.
The Attorney General must establish implementing regulations by July 1, 2027. These rules will define age verification standards and may permit narrow exemptions provided they align with youth protection objectives.
Notably, this legislation does not authorize online gambling or prediction markets within California. Its sole purpose is establishing safeguards against minor exposure to gambling-related content.
James Steyer, CEO of Common Sense, predicted the bill’s eventual passage while cautioning about anticipated resistance. “They will lobby, lobby, lobby, and do every technique they know up in Sacramento to block this legislation,” Steyer said.
