The California Senate has taken decisive action against sweepstakes-style gambling operations, unanimously approving Assembly Bill 831 on September 8. With a 36-0 vote, the Senate advanced the controversial measure that seeks to prohibit online sweepstakes casinos and daily fantasy sports (DFS) platforms throughout the state.
Originally a gut-and-amend bill, AB 831 modifies existing legislation rather than introducing entirely new law, enabling its expedited consideration. The bill, introduced by Assemblyman Avellino Valencia, now returns to the Assembly for further review. If passed, it will head to Governor Gavin Newsom’s desk for final consideration.
Scope and Impact of AB 831
AB 831 aims to criminalize sweepstakes-style casino gaming and DFS that mimic gambli
ng or sports betting — particularly those using dual-currency systems where players can purchase virtual tokens or credits for chances to win prizes.
The legislation also extends liability to platform providers, payment processors, content suppliers, and affiliate marketers who “knowingly and willfully” support such operations.
Notably, two key amendments have softened the bill’s impact. The first ensures individual players will not face criminal penalties. The second clarifies that promotional giveaways from companies like McDonald’s or Starbucks, as well as state lottery offerings, are not subject to the ban.
Tribal Support and Opposition Divide
The response from tribal gaming interests has been mixed. While most major tribes, such as the Yuhaaviatam of San Manuel Nation, have backed the bill under the California Nations Indian Gaming Association (CNIGA), a handful of smaller tribes have voiced concern.
Four tribes, including the Kletsel Dehe Wintun Nation and the Mechoopda Indians of Chico Rancheria, have opposed the bill due to its potential economic impact. These tribes have recently partnered with sweepstakes and social gaming companies like VGW and Yellow Social Interactive, making the proposed ban a direct threat to their revenue streams.
On the day of the Senate vote, members from these tribes protested outside the State Capitol in Sacramento, arguing that the bill could restrict economic development for tribes without full-scale casinos.
Industry Adjusts as Legal Landscape Shifts
As AB 831 progressed through the Senate, the broader iGaming industry began to take notice. The Los Angeles City Attorney has filed a civil lawsuit against Stake.us, a sweepstakes operator, naming major game suppliers like Evolution, Pragmatic Play, and Hacksaw Gaming as co-defendants.
In response, several of those companies — including Pragmatic Play — have withdrawn their games from California sweepstakes platforms. Pragmatic Play has confirmed it will cease supplying content to sweepstakes operators nationwide.
Meanwhile, Playtech, though not involved in the lawsuit, has voluntarily exited the sweeps market in California, signaling a broader retreat from this gaming model as regulatory pressure mounts.
What’s Next for AB 831?
Before becoming law, AB 831 must clear the Assembly Governmental Organization Committee and gain majority approval on the Assembly floor. The bill must be passed by September 12, the end of the legislative session. Governor Newsom has until October 12 to either sign or veto the bill.
Although Attorney General Rob Bonta has previously compared DFS to illegal betting, Governor Newsom has not publicly aligned with this stance. However, political observers suggest a veto is unlikely given the bill’s bipartisan support and zero opposition votes to date.
Source:
“Anti-sweepstakes bill passes California Senate vote unanimously”, gamblinginsider.com, Sep 9, 2025.
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