A major player in the sweepstakes gaming sector has updated its terms to protect itself in California. This move anticipates Assembly Bill 831, which could ban sweeps casinos there.
Modo.us, run by ARB Interactive, recently added this clause to its terms:
“NOTICE TO CALIFORNIA RESIDENTS. In line with California Civil Code sections 1541 and 1542, you agree to give up all rights and remedies under Section 1542.”
Section 1542 states that a general release doesn’t cover unknown claims that could affect a settlement if they were known. In simple terms, it protects people from waiving rights they are unaware of.
By adding this, Modo.us makes California users waive that safeguard. Users agree not to sue for known or unknown issues from using the site. Even if a hidden problem, like a legal breach, comes up later, the user can’t hold the company liable.
It remains to be tested as to whether the courts would side with a sweeps operator, since simply having the language within an agreement doesn’t guarantee legal success.
This step guards against current lawsuits in California. It helps the industry fight AB831 and show they’re open to regulation. It aims to shield Modo.us if AB831 passes, forcing a shutdown of all sweeps casinos in 2026.
VGW took a similar step in July. As one of the top sweeps operators, it updated Chumba Casino, LuckyLand Slots, and Global Poker with similar wording:
“If you live in California, you waive rights under California Civil Code § 1542, which states: ‘A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.’”
This happened soon after VGW began charging sales tax in many states. It aimed to prove commitment to rules, including in California.
A review of 40 operators showed only seven (17.5%) include a Section 1542 waiver. Besides VGW’s three sites, the others are Thrillzz, RealPrize, Carnival Citi, and Chanced. Modo.us uniquely adds Section 1541, which just confirms that written releases are binding.
AB831 faces its final Senate hearing on August 18 before the Appropriations Committee. Approval would send it to a full Senate vote, then back to the Assembly for re-approval due to changes. The session ends September 12, but it could extend or carry over to 2026.
Meanwhile, B-Two Operations has cut or changed promos for California players. Brands like Mega Bonanza, Hello Millions, PlayFame, and SpinBlitz stopped marketing there by late July as AB831 advances.
