- Details
- By Chez Oxendine
- Gaming
Legislation that would outlaw online sweepstakes casinos in California is now on Gov. Gavin Newsom’s desk, following unanimous approval in both chambers of the Legislature.
Assembly Bill 831, authored and sponsored by Assemblymember Avelino Valencia (D-Anaheim), passed the Assembly 79-0 on Sept. 12 after clearing the Senate without opposition. The measure would prohibit sweepstakes-style platforms that mimic casino games, extending liability not only to operators but also to payment processors, affiliates, and other companies that support the industry. Violations could bring misdemeanor charges, fines of up to $25,000 and up to one year in county jail.
Newsom has until Oct. 12 to sign or veto the bill, or allow it to become law without his signature. The governor has not publicly signaled support or opposition to the measure, per a report by SBC Americas. If signed, AB 831 would take effect Jan. 1, 2026.
Supporters, led by tribal governments and the California Nations Indian Gaming Association (CNIGA), argue the bill protects the state’s voter-approved framework granting tribes exclusive rights to operate casino-style gaming.
“These illegal platforms erase the benefits of regulated gaming while exposing consumers to serious risks,” CNIGA Chairman James Siva said in a statement. “AB 831 protects the economic engine that generates nearly $25 billion for California communities and supports more than 112,000 jobs statewide.”
The Yuhaaviatam of San Manuel Nation also backed the bill, with Chairwoman Lynn Valbuena noting that tribes have “upheld the will of California voters by operating gaming with integrity” for more than two decades.
Opposition has come from sweepstakes operators and some smaller tribes. The Social Gaming Leadership Alliance (SGLA), which represents companies in the space, has urged Newsom to veto the bill.
“California is on the verge of throwing away a billion-dollar industry,” SGLA Executive Director Jeff Duncan said in a recent statement, reports Cal Coast Times. “Sweepstakes casinos generate around $1 billion annually in California’s economy, including more than $700 million spent on advertising through California-based companies. Shutting the door outright will hurt consumers, digital innovation, and even some tribal communities that could benefit from partnerships in this space.”
Several smaller tribes — including the Kletsel Dehe Wintun Nation, Sherwood Valley Band of Pomo Indians and Mechoopoda Indian Tribe of Chico Rancheria — have also raised concerns that the measure favors larger, established tribal casinos while cutting off potential new revenue streams. According to an article by Deadspin, each of those tribes has partnerships with sweepstakes platforms that could be impacted by the law.
The legislation is the latest effort by lawmakers supporting tribal exclusivity in the state. In Sept. 2024, Newsom signed Assembly Bill 549, which allows tribes to sue private cardrooms that allegedly skirted exclusivity rules by relying on third parties to fund games played against the house, such as blackjack. Tribes had until April 1, 2025 to file lawsuits under the legislation.
