A legislative proposal that aims to outlaw online sweepstakes casinos in California has cleared a key procedural hurdle and now heads to the Senate floor for a full vote.
AB 831, authored by Assemblymember Avelino Valencia, was advanced by the Senate Appropriations Committee during a rapid-fire “suspense file” hearing on Friday. In the hearing—designed to assess the fiscal impact of hundreds of bills—AB 831 was approved without discussion in a unanimous 7-0 vote.
What AB 831 Proposes
If passed, AB 831 would criminalize the operation of online sweepstakes casinos that use a “dual currency” system to simulate casino-style gambling, including sports wagering. The bill outlines penalties of up to one year in jail and fines ranging from $1,000 to $25,000 for violators. It also targets affiliates and suppliers connected to these unregulated operators.
Originally introduced in a different form, the bill was overhauled in the Senate and reshaped into legislation specifically banning online sweepstakes gambling. After its amendments in June, the bill cleared the Governmental Organization Committee and the Public Safety Committee by unanimous votes before making its way to Appropriations.
Notably, an earlier provision that would have criminalized the players of sweepstakes casinos—along with operators and their vendors—was stripped out before the latest vote.
Tribal Support and Limited Pushback
The legislation has received strong backing from influential tribal gaming groups. The Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA) are among its most vocal proponents. Many other Native American tribes across the state have aligned with the bill, citing threats to their exclusive gaming rights.
“The state’s voters have consistently shown their trust in Native American tribes to operate gaming facilities responsibly and ethically,” wrote the Yuhaaviatam of San Manuel Nation in support. “Allowing unregulated and predatory sweepstakes operators to bypass these regulations undermines that trust and integrity of California’s gaming policies.”
However, opposition has emerged from a handful of smaller tribal entities, including the Sherwood Valley Band of Pomo Indians and the Kletsel Dehe Wintun Nation, which recently partnered with sweepstakes operator VGW. Critics argue the bill could limit economic opportunities for less-resourced tribes.
“Eliminating legitimate, regulated digital enterprise will only deepen the disparities our people face, erode our tribal self-sufficiency, and contradict California’s stated commitment to equity and inclusion for all tribal nations,” wrote Buffey Bourassa, secretary of the Sherwood Valley Band of Pomo Indians, in a letter to the committee.
Final Vote Still Ahead
Though the bill has moved forward, its future is not yet certain. Chair of the Appropriations Committee, Sen. Anna Caballero, emphasized that the committee’s vote should not be seen as a final endorsement: “The fact that any of us vote for an item in committee today does not mean that particular member is necessarily going to vote for the item on the floor.”
The full Senate must now vote on AB 831, and if passed, the bill would return to the Assembly for approval due to substantial changes from its original version. Lawmakers face a September 12 deadline to pass legislation this year.
Meanwhile, California’s approach follows similar actions in other states. Earlier this month, New Jersey enacted its own ban on sweepstakes gambling, signaling growing nationwide scrutiny of these platforms.
The post California Online Sweepstakes Casino Ban Bill Moves to Senate Floor first appeared on RealMoneyAction.com.