California, September 27, 2025
News Summary
The California Legislature has passed Assembly Bill 831, which addresses online sweepstakes casinos that imitate traditional games. With unanimous support, the bill aims to hold operators accountable and mitigate illegal gambling activities. Supporters believe it protects tribal gaming rights and brings significant benefits to California communities, while opponents express concerns over its impact on smaller tribes and the broader gaming industry. The bill awaits Governor Gavin Newsom’s decision by October 12.
California
The California Legislature has passed Assembly Bill 831, which targets online sweepstakes casinos that mimic traditional casino games. The bill received unanimous support in both chambers, passing the Assembly with a vote of 79-0 on September 12 after clearing the Senate without opposition. The legislation is now awaiting the decision of Governor Gavin Newsom, who must act by October 12 for the bill to take effect on January 1, 2026.
If enacted, AB 831 will hold sweepstakes casino operators, payment processors, affiliates, and supportive companies liable for participating in what the bill defines as illegal gambling activities. Violations could result in misdemeanor charges, fines of up to $25,000, and potential jail sentences of up to one year.
Supporters of the bill, including tribal governments and the California Nations Indian Gaming Association (CNIGA), argue that the legislation is essential for maintaining the integrity of California’s voter-approved framework that grants tribes exclusive rights to casino-style gaming. They contend that illegal online platforms undermine the benefits derived from regulated gaming, which contribute nearly $25 billion to California communities and support more than 112,000 jobs statewide.
Tribal representatives, including the Yuhaaviatam of San Manuel Nation, have voiced strong support for the legislation, emphasizing the successful and responsible operation of tribal gaming for over 20 years. However, the bill has faced opposition 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. These groups argue that the legislation disproportionately benefits larger tribal casinos at the expense of smaller operators and limits potential revenue streams for those smaller tribes.
The Social Gaming Leadership Alliance (SGLA) has labeled the bill as harmful, claiming it could dismantle a billion-dollar industry while impacting consumers and stifling digital innovation. They are urging Governor Newsom to veto the bill.
The key aim of AB 831 is to eliminate loopholes that have allowed sweepstakes operators to sidestep regulations by claiming their offerings are promotional games rather than gambling. If the bill is signed into law, it would prohibit access to popular sweepstakes casino platforms that offer redeemable prizes.
It is important to note that the legislation does not legalize sports betting or online casinos. Instead, it reinforces existing prohibitions against unregulated gambling while exempting licensed tribal casinos and legitimate marketing sweepstakes. Previous related legislation includes Assembly Bill 549, signed by Newsom in September 2024, which empowers tribes to take legal action against private cardrooms alleged to be bypassing exclusivity rules granted to them.
Some have raised concerns that banning sweepstakes casinos might push Californians to seek out unregulated gambling options on unverified offshore websites. As of now, Governor Newsom has not made any public comments regarding his stance on AB 831, and the Assembly must still concur with Senate amendments prior to its consideration.
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 violations of the bill?
Violations are subject to misdemeanor charges, fines of up to $25,000, and up to one year in county jail.
What do supporters of the bill argue?
Supporters argue it protects the state’s voter-approved framework that grants tribes exclusive rights to casino-style gaming and prevents illegal platforms that undermine regulated gaming benefits.
What is the position of the opposition?
The opposition, including smaller tribes and sweepstakes operators, argues that the bill favors larger tribal casinos and limits revenue streams for smaller tribes.
What is the deadline for Governor Newsom to decide on the bill?
Governor Gavin Newsom must act by October 12 for the bill to take effect on January 1, 2026.
Key Features of Assembly Bill 831
| Feature | Description |
|---|---|
| Unanimous Approval | Passed by both chambers with a vote of 79-0 in the Assembly. |
| Liability Extension | Operators, payment processors, and affiliates can be held liable for violations. |
| Potential Penalties | Fines up to $25,000 and imprisonment for up to one year. |
| Support from Tribal Governments | Endorsed by tribes that emphasize protection of established gaming rights. |
| Opposition | Criticism from sweepstakes operators and smaller tribes concerned about revenue loss. |
| Not Legalizing Sports Betting | Bill does not legalize sports betting or online casinos. |
Deeper Dive: News & Info About This Topic
- Tribal Business News: California State Legislature Sends Online Sweepstakes Ban to Governor’s Desk
- Sports Handle: California Senate Passes Bill to Ban Online Sweepstakes Casinos
- Legal Sports Report: California Sweepstakes Ban Bill Passes Senate Unanimously
- Wikipedia: Online Gambling
- Google Search: California sweepstakes ban
Author: STAFF HERE BEVERLY HILLS WRITER
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