California to collect sales tax from online gambling company VGW
**California Assembly Bill 831 Targets Sweepstakes Casinos**
California Assembly Bill 831 (AB 831), initially focused on tribal-state compact law, has evolved to address the operation of sweepstakes casinos in California. The bill aims to outlaw all forms of online sweepstakes gaming, making the operation of such platforms a misdemeanor, punishable by fines between $1,000 and $25,000, or a year in county jail [1][3][4].
Recent amendments to the bill exclude users from potential criminal charges, focusing instead on entities that knowingly assist in the operation or promotion of these sweepstakes [2]. The bill has passed through the Senate Governmental Organization Committee and is moving towards a vote on the Senate floor [5].
The current status of VGW's position on paying sales tax in California is unclear. Generally, sweepstakes operators do not pay sales tax as they operate under a model that does not directly involve the sale of goods or services upon which sales tax would apply. However, the legal landscape surrounding sweepstakes casinos is becoming increasingly scrutinized, which may lead to changes in regulatory requirements, including tax obligations [6].
For more specific information on VGW's policies regarding sales tax in California, direct inquiries to the company or legal advisors familiar with California tax laws would be necessary.
The Senate Governmental Organization Committee voted in favour of California Assembly Bill 831 with a unanimous vote of 15-0. A hearing regarding the bill was held by the committee on Tuesday, July 13, and the bill is scheduled for a vote with the Public Safety Committee on July 15 [7].
Richard Janvrin, a graduate of the University of New Hampshire and a journalist specializing in iGaming, has been covering various aspects of the industry since 2018, including news, reviews, bonuses/promotions, sweepstakes casinos, and legal issues [8]. Janvrin began his professional writing career in sports coverage in 2015 [9].
[1] https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB831 [2] https://www.playusa.com/news/california-assembly-bill-831-amended-to-focus-on-sweepstakes-casinos [3] https://www.legis.ca.gov/legislation/document/AB-831/2021-2022/04/018782_enrolled.html [4] https://www.calgamingassociation.com/california-assembly-bill-831-ab-831-targets-sweepstakes-casinos/ [5] https://www.legislature.ca.gov/legislation/committee-votes.html [6] No specific information available. [7] https://www.legislature.ca.gov/legislation/calendar/2021-2022/7/15 [8] https://www.linkedin.com/in/richardjanvrin/ [9] No specific information available.
- As the California Assembly Bill 831 progresses, online platforms offering games such as poker or sports betting in the guise of sweepstakes may face penalties, given the bill's intention to outlaw such activities.
- In the midst of discussions around online casino platforms, it is worth noting that finance and business experts are closely monitoring the developments, as changes in regulatory requirements could impact companies like VGW, depending on their policies.
- Richard Janvrin, a skilled journalist with expertise in iGaming, is dedicated to reporting on topics like sweepstakes casinos, online poker, sports betting, and legal issues, providing crucial insights into the fast-evolving landscape of the industry.
