The California Senate has delivered a unanimous vote in favor of Assembly Bill 831. The legislation seeks to outlaw online sweepstakes casinos as well as sportsbooks in the state. On September 8, the Senate passed the bill 36-0. It now returns to the Assembly for approval of the Senate’s amendments before Governor Gavin Newsom can give final consideration.
Assembly member Avelino Valencia authored AB 831. It represents a sweeping crackdown on sweepstakes-style gambling platforms that mimic casino or sports betting operations. The measure has received no opposition votes at any stage. It reflects mounting pressure from tribal gaming groups and lawmakers. They aim to close what they see as a regulatory loophole that undermines California’s gaming framework.
AB 831 criminalizes the operation of dual-currency, prize-awarding sweepstakes casinos. It also extends liability to anyone who knowingly supports such businesses. This includes payment processors, affiliate marketers, software providers, as well as other third-party partners. Violations could result in fines and even jail time.
To avoid unintended consequences, lawmakers adjusted the language numerous times. Amendments clarified that consumers would not face penalties. They also ensured that legitimate sweepstakes promotions, such as McDonald’s Monopoly or Starbucks Rewards, would remain unaffected. Similarly, lawmakers added protections to ensure that the state lottery and licensed cardrooms remained outside the scope of the ban.
Valencia defended the legislation, arguing that many sweepstakes operators are based offshore and run without proper oversight. They evade requirements like consumer protections, responsible gaming safeguards, background checks, and tax compliance.
Long central to California’s gaming industry, Native American tribes remain divided on the issue. Large and influential groups, such as the Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA), strongly support the legislation. They argue that unregulated sweepstakes sites threaten the integrity of tribal gaming.
