TLDR
- California Assembly Bill 2617 would block gambling and prediction market ads from targeting minors
- Operators must verify user ages before granting access, with full requirements kicking in by January 2028
- Violations carry penalties of $2,500 each, and minors can seek up to $1 million in civil damages
- The bill bans paid ads, influencer marketing, and algorithm-driven promotion of gambling to under-18s
- The Attorney General and city attorneys would gain enforcement powers to bring civil actions against violators
California lawmakers have introduced Assembly Bill 2617 to stop online gambling and prediction market platforms from advertising to minors. The bill was filed by Assemblymembers Pilar Schiavo and Rob Bonta.
The legislation comes as prediction markets continue to grow rapidly across the United States. These platforms have drawn increasing attention from younger audiences through social media and online advertising.
“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 described how gambling content is packaged to appeal to young people. He said it is “dressed up to look like skill, like sports knowledge, like a fun way to earn a little money, not like gambling.”
The bill cites research showing that more than a third of boys aged 11 to 17 reported gambling in the past year. Lawmakers warn that early exposure increases impulsive behavior and long-term financial risks.
Under the proposed law, operators of gambling websites and prediction markets would be required to verify the ages of their users. They would also need to restrict advertising that targets anyone under 18.
What the Bill Requires From Platforms
Before January 1, 2028, companies must avoid offering gambling services to minors if they already know a user’s age. After that date, operators will need to take active steps to confirm users are 18 or older before granting access.
The advertising restrictions cover paid ads, influencer marketing, and algorithm-driven content promotion. All of these methods would be banned when they target minors.
Companies that collect age verification data must delete it immediately after use. That data cannot be repurposed for marketing or user profiling.
Violations would be treated as unfair competition under California law. Each violation carries a penalty of $2,500.
Minors who are harmed by illegal exposure to gambling content can pursue civil damages of up to $1 million. Parents or guardians may also act on behalf of minors to seek those damages.
Enforcement and Opposition Ahead
The bill gives enforcement powers to the California Attorney General and city attorneys. They would be able to bring civil actions against violators, seek fines, obtain injunctive relief, and recover attorney’s fees.
The Attorney General is directed to adopt regulations by July 1, 2027. Those regulations will cover age assurance standards and may include limited exceptions if they are consistent with the goal of protecting minors.
The bill does not legalize online gambling or prediction markets in California. It only sets rules to protect minors from exposure to gambling content.
Common Sense CEO James Steyer said he expects the bill to pass but warned it will face strong industry opposition. “They will lobby, lobby, lobby, and do every technique they know up in Sacramento to block this legislation,” Steyer said.
