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California lawmakers are looking to raise the stakes for online gambling and prediction market operators that expose minors to their platforms. Assembly Bill 2617, the Protecting Kids from Online Gambling Act, was introduced by Assemblymembers Pilar Schiavo, D-Chatsworth, and Mia Bonta, D-Oakland.
The bill proposes strict limits on how gambling companies and prediction markets advertise to and interact with minors in California. If passed, California would become the first state in the country to formally protect children from being targeted for predictive gambling.
Restricting access and marketing to minors
AB 2617 places the responsibility for keeping minors off gambling platforms squarely on operators. Companies would be required to verify a user’s age before granting access to any gambling or prediction market service. Under the proposed timeline, formal age-verification standards must be published by July 1, 2027, with a mandatory implementation date of Jan. 1, 2028.
Beyond access controls, the bill targets how these companies market their products. It would prohibit any form of advertising directed at minors, covering a broad range of promotional methods, including paid advertisements, influencer marketing, affiliate marketing, and algorithmic promotion. To protect user privacy, operators may only collect information necessary for age verification and must delete that data once the process is complete.
Million-dollar fines and private lawsuits
Violations would be classified as unfair competition under state law, granting the state attorney general and local prosecutors the authority to pursue court orders and substantial financial penalties. A Legal Sports Report news post stated that companies found in breach could be required to pay the greater of $2,500 per incident (capped at $1 million per minor) or three times the total damages suffered by the affected minor.
Furthermore, the legislation would grant families a private right of action, allowing them to file civil lawsuits against operators on behalf of harmed children. For operators, the bill represents a fundamental shift in legal exposure; the burden falls on companies to prove they took active, verifiable steps to block underage access.
The growing crisis of youth gambling
While California currently has no active online gambling market, the state moved in 2025 to ban sweepstakes gaming, pushing prediction markets to the center of the debate. Although companies like DraftKings and FanDuel already run identity checks, Schiavo argues these methods are insufficient and often contain loopholes.
“We know it’s gambling,” Schiavo said. “It becomes a bigger threat when operators exploit that loophole to actively target kids.”
This sentiment is echoed by Common Sense Media, which found that more than a third of boys ages 11 to 17 reported gambling within the past year—often due to content pushed through social media algorithms rather than active searching.
James P. Steyer, chief executive of Common Sense Media, compared the industry’s tactics to those once used by tobacco executives to hook young users. Bonta added that such content is often deceptively packaged as a casual “test of sports knowledge” rather than a high-risk financial activity.
What’s next for AB 2617
The bill must now move through the full legislative process. If it clears the California Legislature and receives the governor’s signature, AB 2617 would represent one of the most aggressive approaches any US state has taken to regulate gambling advertising and protect minors in the digital age.
