Protecting Kids from Online Gambling Act.
What changed between versions
Entirely new chapter (Sections 17950-17960) added to Part 3 of Division 7 of the Business and Professions Code, creating the Protecting Kids from Online Gambling Act. The bill now covers both cannabis regulation and online gambling protection for minors.
A co-author (Assembly Member Bonta) was added to the bill, and the fiscal committee designation changed from 'no' to 'yes,' indicating the bill now has fiscal implications requiring review.
New definitions established for 'advertise' (including algorithmic promotion, influencer marketing, affiliate marketing), 'covered service or application' (any public or semipublic website, app, or mobile application accessible in California), 'minor' (under 18 located in the state), 'online gambling activity' (table games, slots, lotteries, sports/fantasy sports wagering), 'predictive market wagering' (betting on future event outcomes like political, economic, or weather events), and 'operator.'
Two-tier prohibition structure: Before January 1, 2028, operators may not make online gambling or predictive market wagering available to, or advertise them to, users if the operator has actual knowledge the user is a minor. On and after January 1, 2028, operators must reasonably determine the user is not a minor before making these activities available or advertising them.
Age verification data protection requirements: information collected for age determination must be limited to what is reasonably necessary, cannot be used for marketing, profiling, or any other commercial purpose, and must be deleted immediately after age determination is complete (except as required by law).
Violations constitute unfair competition under the Unfair Competition Law. The Attorney General or a city attorney may bring civil actions for penalties of $2,500 per violation, injunctive or declaratory relief, and attorney's fees. A harmed minor (or parent/guardian) may bring a private action for statutory damages of $2,500 per violation (capped at $1,000,000 per minor) or three times actual damages, whichever is greater, plus punitive damages and other relief.
The Attorney General must adopt implementing regulations, including age assurance standards, on or before July 1, 2027. The stricter 'reasonable determination' standard (replacing the 'actual knowledge' standard) takes effect January 1, 2028.