Key Points
- AB 2617 aims to prohibit gambling and prediction market advertisements directed at individuals under 18
- Platform operators face mandatory age verification requirements, with comprehensive compliance deadlines set for January 2028
- Each violation risks a $2,500 penalty, while affected minors may pursue civil damages reaching $1 million
- Restrictions encompass paid advertising, influencer partnerships, and algorithmic content targeting of underage users
- Enforcement authority would extend to the Attorney General and municipal attorneys to pursue civil proceedings
California’s legislative assembly has put forward Assembly Bill 2617, legislation designed to prevent prediction markets and online gambling services from marketing to youth. Assemblymembers Pilar Schiavo and Rob Bonta jointly sponsored the measure.
The proposal arrives during a period of explosive growth for prediction market platforms nationwide. 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 said during a news conference on Monday.
Bonta elaborated on how gambling platforms present their services to attract young users. 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 have engaged in gambling activities within the previous 12 months. Legislators emphasize that early gambling exposure correlates with increased impulsive tendencies and lasting financial vulnerability.
The proposed statute would compel gambling platform operators and prediction market providers to implement age verification protocols. These entities would further need to eliminate advertising practices that reach individuals below 18 years of age.
Platform Obligations Under the Legislation
Prior to January 1, 2028, companies must refrain from providing gambling access to minors when user age information is already known. Following that threshold date, operators will bear responsibility for actively authenticating that users have reached 18 years before permitting platform entry.
Advertising prohibitions span multiple channels including purchased advertisements, influencer collaborations, and algorithm-based content distribution. These marketing approaches would all face bans when directed toward underage audiences.
Organizations gathering age verification information must immediately purge such data following its verification purpose. This information cannot be retained for marketing initiatives or user behavior analysis.
Non-compliance would constitute unfair business practices under state statutes. Individual violations incur a $2,500 financial penalty.
Young people subjected to harmful gambling content exposure through illegal means may claim civil compensation reaching $1 million. Legal guardians retain the right to initiate such claims on minors’ behalf.
Enforcement Mechanisms and Industry Resistance
The legislation delegates enforcement capabilities to California’s Attorney General alongside city legal representatives. These officials would possess authority to initiate civil litigation against violating entities, pursue monetary penalties, secure injunctive orders, and collect legal costs.
The Attorney General faces a July 1, 2027 deadline to establish implementing regulations. These rules will define age assurance protocols and may incorporate narrow exceptions where aligned with minor protection objectives.
The bill contains no provisions legalizing online gambling or prediction markets within California. Its scope remains limited to establishing safeguards preventing minor exposure to gambling-related content.
Common Sense CEO James Steyer anticipates legislative passage while cautioning about anticipated industry resistance. “They will lobby, lobby, lobby, and do every technique they know up in Sacramento to block this legislation,” Steyer stated.
