California, September 27, 2025
News Summary
California has taken a historic step towards banning online sweepstakes casinos with the unanimous passage of Assembly Bill 831. Authored by Assemblymember Avelino Valencia, the bill aims to outlaw platforms resembling traditional casino games. The legislation extends liability to operators and payment processors, imposing penalties for violations which include fines and potential jail time. Supporters argue it protects the state’s regulated gaming industry, while opponents, including some tribes, argue it may favor larger casinos. The bill is now awaiting the governor’s decision and could come into effect in 2026.
California has taken a significant step toward banning online sweepstakes casinos with the recent passage of Assembly Bill 831. The legislation, which aims to outlaw these platforms that often resemble traditional casino games, recently received unanimous approval from both chambers of the California Legislature. The bill was authored by Assemblymember Avelino Valencia (D-Anaheim) and passed the Assembly with a vote of 79-0 on September 12, following its clear passage in the Senate without opposition. The bill is now awaiting a decision from Governor Gavin Newsom and, if signed by October 12, 2023, it will take effect on January 1, 2026.
The legislation extends liability to not only the operators of these online casinos but also to payment processors, affiliates, and companies that support the sweepstakes industry. Violators could face misdemeanor charges, fines up to $25,000, and potential jail time of up to one year in county jail.
Supporters of AB 831 include tribal governments and the California Nations Indian Gaming Association (CNIGA), who argue that the bill protects the state’s framework established by voters, which grants tribes exclusive rights to casino-style gaming. The CNIGA has emphasized that illegal platforms threaten the regulated gaming industry, expose consumers to risks, and could jeopardize the nearly $25 billion generated for California communities, as well as the over 112,000 jobs that rely on these legitimate operations.
In contrast, the bill has faced opposition from sweepstakes operators and some smaller tribes, including the Kletsel Dehe Wintun Nation, Sherwood Valley Band of Pomo Indians, and Mechoopoda Indian Tribe of Chico Rancheria. These groups argue that the bill may disproportionately favor larger tribal casinos and limit revenue opportunities for smaller tribes in the state.
The Social Gaming Leadership Alliance (SGLA) has also criticized the legislation, claiming it could eradicate a billion-dollar industry and negatively impact consumers and digital innovation. The alliance is urging Governor Newsom to veto the bill.
The key purpose of AB 831 is to close loopholes that sweepstakes operators have exploited, which allow them to claim their platforms are merely promotional games rather than gambling. Should the bill be enacted, it would prevent Californians from accessing well-known sweepstakes casino platforms that typically award redeemable prizes.
It is important to note that this legislation does not include provisions for legalizing sports betting or online casinos. Instead, it reinforces prohibitions on unregulated gambling while still exempting licensed tribal casinos and legitimate marketing sweepstakes.
Previous legislation relevant to this matter includes Assembly Bill 549, which Governor Newsom signed into law in September 2024. This bill permits tribes to take legal action against private cardrooms believed to be circumventing state exclusivity rules pertaining to gaming.
Concerns have been raised that banning sweepstakes casinos could lead Californians towards unregulated gambling options available on offshore websites. To date, Governor Newsom has not made any public comments regarding his position on AB 831.
Before heading to Governor Newsom, the Assembly must concur with Senate amendments made to the bill.
FAQ
What is Assembly Bill 831?
Assembly Bill 831 targets online sweepstakes casinos that mimic casino games and has received unanimous approval from both chambers of California’s Legislature.
Who authored the bill?
The bill was authored by Assemblymember Avelino Valencia (D-Anaheim).
What are the penalties for violating the new law?
Violations are subject to misdemeanor charges, fines of up to $25,000, and up to one year in county jail.
When will the bill take effect if signed into law?
If signed by Governor Gavin Newsom by October 12, the bill will take effect on January 1, 2026.
What do supporters of the bill say?
Supporters argue it protects the state’s voter-approved framework that grants tribes exclusive rights to casino-style gaming.
Who has opposed the bill?
Opposition comes from sweepstakes operators and smaller tribes, including the Kletsel Dehe Wintun Nation, Sherwood Valley Band of Pomo Indians, and Mechoopoda Indian Tribe of Chico Rancheria, who argue the bill favors larger tribal casinos.
Deeper Dive: News & Info About This Topic
- Tribal Business News
- Wikipedia: Online Gambling
- Sports Handle
- Google Search: California sweepstakes casinos
- Edhat
- Google Scholar: California sweepstakes ban
- Legal Sports Report
- Encyclopedia Britannica: Gambling
- Action Network
- Google News: Sweepstakes Casinos
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