California, September 27, 2025
News Summary
California’s Legislature has passed Assembly Bill 831, which prohibits online sweepstakes casinos mimicking traditional casino games. The bill, authored by Assemblymember Avelino Valencia, received unanimous support and awaits Governor Gavin Newsom’s approval. If signed, it will extend accountability to operators and related companies, imposing penalties for violations. Supporters, including tribal governments, argue it protects the state’s gaming framework, while critics claim it may harm smaller tribal casinos and limit consumer choices. The bill is set to take effect on January 1, 2026, should it be signed by October 12.
California’s Legislature has unanimously passed Assembly Bill 831, aimed at outlawing online sweepstakes casinos that replicate traditional casino games. The bill, which has been approved by both the Assembly and the Senate without opposition, is now awaiting Governor Gavin Newsom’s decision. If signed by the Governor by October 12, the new legislation is set to take effect on January 1, 2026.
Authored by Assemblymember Avelino Valencia (D-Anaheim), Assembly Bill 831 received a 79-0 vote from the Assembly on September 12. The legislation extends accountability not only to the operators of these online platforms but also to payment processors, affiliates, and supporting companies within the sweepstakes industry. Violations of the new rules could result in misdemeanor charges, fines reaching up to $25,000, and potential jail time of up to one year.
Supporters of AB 831, including tribal governments and the California Nations Indian Gaming Association (CNIGA), argue that the legislation is essential for protecting California’s voter-approved gaming framework. This framework provides exclusive rights to tribes for casino-style gaming, which supporters claim is crucial for maintaining the integrity and safety of gaming in the state. The CNIGA highlighted concerns that illegal online platforms erode consumer protections while jeopardizing the nearly $25 billion generated annually for California communities and affecting over 112,000 jobs statewide.
Several tribal entities, such as the Yuhaaviatam of San Manuel Nation, have expressed their support for the bill, pointing out that tribes have managed gaming operations with integrity for over two decades. However, the legislation has faced opposition. Some sweepstakes operators and smaller tribes, including the Kletsel Dehe Wintun Nation, Sherwood Valley Band of Pomo Indians, and the Mechoopoda Indian Tribe of Chico Rancheria, argue that the bill disproportionately favors larger tribal casinos and restricts revenue avenues for smaller tribes.
The Social Gaming Leadership Alliance (SGLA) has criticized Assembly Bill 831, contending that it could potentially wipe out a billion-dollar industry and negatively impact consumers and digital innovation. They are advocating for Governor Newsom to consider vetoing the bill.
The primary aim of AB 831 is to close existing loopholes exploited by sweepstakes operators that claim their platforms are merely promotional rather than gambling-related. If enacted, this bill would prohibit consumers from accessing popular sweepstakes casino platforms that offer redeemable prizes. It is important to note that the legislation will not legalize sports betting or online casinos; rather, it reinforces existing prohibitions on unregulated gambling while still allowing licensed tribal casinos and legitimate marketing sweepstakes to operate.
This recent bill follows earlier legislative efforts, such as Assembly Bill 549, signed by the Governor in September 2024, which enables tribes to take legal action against private cardrooms alleged to be evading exclusivity regulations. Concerns have emerged that banning online sweepstakes casinos could compel Californians to seek unregulated gambling options through offshore websites.
As of now, Governor Newsom has not publicly commented on his position regarding Assembly Bill 831. Before AB 831 can be sent to the Governor, the Assembly must first agree on the Senate amendments to the bill.
Frequently Asked Questions
What does Assembly Bill 831 aim to do?
Assembly Bill 831 targets online sweepstakes casinos that mimic casino games, and if signed, it will outlaw these activities in California.
What are the penalties for violating the new law?
Violations of the law may result in misdemeanor charges, fines of up to $25,000, and up to one year in county jail.
Who supported the bill?
Supporters of the bill include tribal governments and the California Nations Indian Gaming Association (CNIGA), who argue it protects the state’s voter-approved gaming framework.
Who opposed the bill?
Opposition comes from sweepstakes operators and smaller tribes who believe the bill favors larger tribal casinos and limits revenue streams for them.
What happens if the Governor signs Assembly Bill 831?
If signed by Governor Gavin Newsom by October 12, the bill will take effect on January 1, 2026.
Deeper Dive: News & Info About This Topic
- Tribal Business News: California State Legislature Sends Online Sweepstakes Ban to Governor’s Desk
- Wikipedia: Gambling in the United States
- Sports Handle: California Senate Passes Bill to Ban Online Sweepstakes Casinos
- Google Search: California sweepstakes casinos
- ABC10: California Targets Online Casino Sweepstakes with New Bill
- Encyclopedia Britannica: Casino
- Edhat: California Senate Moves Toward Ban on Sweepstakes Casinos
- Legal Sports Report: California Sweepstakes Ban Bill Passes Senate Unanimously
- Covers: Sweepstakes Casinos
- Google Scholar: California sweepstakes casinos
Author: STAFF HERE HOLLYWOOD
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