Gambling: operation of a contest or sweepstakes.

The document was reformatted from a chaptered statutory print layout to a web page presentation. Page numbers, the 'STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGICAL MATERIAL' header, and formal pagination were removed. Web navigation elements (menu links, search boxes, version selectors, share buttons) were added around the same bill text.

The term 'gambling-themed game' is replaced with 'gambling' throughout the bill, broadening the scope of covered activities beyond games that merely mimic or simulate gambling to encompass gambling more generally.

The payment system requirement in Section 17539.1(12) is narrowed from 'a system of payment' to specifically 'a dual-currency system of payment,' limiting the unfair practice prohibition to games using the two-currency model (paid coins plus free promotional entries).

A new Section 1 states legislative intent that the act applies only to persons or entities who knowingly and intentionally engage in, promote, or facilitate online sweepstakes games using dual-currency systems, and explicitly does not apply to ancillary or publicly available services, platforms, or infrastructure providers used unknowingly or unintentionally.

Section 337o(a) removes 'promote' from the list of prohibited activities, so merely promoting an online sweepstakes game is no longer independently unlawful under this section (though operating, conducting, or offering it remains prohibited).

New subsection (e) to Section 337o explicitly exempts lawful games and methods used by gambling enterprises licensed under the Gambling Control Act and operations of the California State Lottery.

New subsection (f) to Section 337o explicitly exempts game promotions or sweepstakes conducted by for-profit commercial entities on a limited and occasional basis as advertising and marketing tools incidental to substantial bona fide sales of consumer products or services.

In Penal Code Section 337o(b), the mental state requirement for third-party support is raised from 'knowingly' to 'knowingly and willfully,' making it harder to prosecute payment processors, platform providers, and other intermediaries.

Section 337o(b) removes 'person' from the list of liable parties for supporting online sweepstakes games, now covering only 'entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate.'

Removed the qualifier 'casino-style' before 'table games' in both Section 17539.1(a)(12) and new Penal Code Section 337o(c)(3)(C), broadening the prohibition to cover all table games (blackjack, roulette, craps, poker, etc.) rather than only those styled as casino games.

Deleted the phrase 'or play a gambling-themed game' from Section 17539.1(a)(12), eliminating 'gambling-themed game' as a separate prohibited category and consolidating the prohibition under the broader definition of 'simulating gambling.'

Simplified the list of games that mimic or simulate gambling in Section 17539.1(a)(12) from 'similar gambling-themed games, casino-style table games, sports wagering, lottery games, or bingo' to simply 'similar gambling,' making the language more concise while preserving the same scope.

Added a new criminal offense (Penal Code Section 337o) making it unlawful to operate, conduct, offer, or promote an 'online sweepstakes game' in California, and also unlawful for financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, or media affiliates to support such games directly or indirectly.

Expanded existing sweepstakes law (Business and Professions Code 17539.1) to explicitly prohibit using internet websites or online applications to simulate gambling, and broadened the list of prohibited gambling-themed games to include lottery games, bingo, and sports wagering by name.

Added an explicit carve-out stating that games which do not award cash prizes or cash equivalents are not made unlawful by the new provisions, and that limited, occasional promotional sweepstakes by for-profit entities used as advertising tools are exempt.

Defined 'online sweepstakes game' as a game that is available online or on mobile devices, uses a dual-currency system (direct and indirect consideration), simulates casino-style gambling (slot machines, video poker, table games, lotteries, bingo, sports wagering), and awards cash or cash equivalents.

Set penalties for violating the new online sweepstakes game prohibition as a misdemeanor punishable by a fine of $1,000 to $25,000, up to one year in county jail, or both.

Added a new prohibited practice covering any payment system that allows a person to play a simulated gambling program for direct or indirect consideration (including consideration tied to a related product, service, or activity) where the player may become eligible for cash prizes or a chance to win cash.

Retained the original change extending the legislative review period for tribal-state gaming compacts from the 15th day to the 20th day after the Legislature reconvenes following a joint recess.

Changed the fiscal note from 'State-mandated local program: no' to 'yes' because the new crime triggers state-mandated local program obligations, though the bill includes a provision stating no reimbursement is required under Article XIII B of the California Constitution because it creates a new crime.

All provisions amending Government Code Section 12012.25 regarding tribal-state gaming compacts were removed, including the ratification of 57 existing compacts, the process for ratifying new materially identical compacts, the Governor's authority to negotiate compacts, the CEQA exemption for compacts, and the submission process to the Secretary of the Interior.

Business and Professions Code Section 17539.1(a)(12) changed the exemption language from 'places of ongoing gambling or gaming' to simply 'ongoing gambling or gaming,' removing the physical location limitation and potentially broadening the advertising/marketing exemption.

Penal Code Section 337o(b) now requires that a person 'knowingly' support the operation, conduct, or promotion of an online sweepstakes game. This adds a mens rea requirement that narrows criminal liability for third parties such as financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, and media affiliates.

Penal Code Section 337o(a) now includes 'or offer' in the list of prohibited activities (operate, conduct, offer, or promote), slightly broadening the range of conduct that constitutes a violation for operators.

The bill title and legislative counsel's digest were updated to remove references to tribal-state gaming compacts, reflecting the removal of those provisions. The author name was corrected from 'Ramos Valencia' to 'Valencia.' Fiscal notes were corrected to indicate a state-mandated local program exists.