California lawmakers have once again revised AB 831 — a controversial bill targeting online sweepstakes gambling—to clarify its scope ahead of a key Senate vote. On September 3, the bill was amended for the second time since being significantly overhauled in late spring. The latest adjustments aim to ease industry and public concerns over the potential reach of the proposed ban.
Brand Promotions, State Lottery Exempt
A central focus of the new amendment is to dispel fears that the bill would outlaw common promotional sweepstakes from major retailers like McDonald’s and Starbucks. Industry associations had warned that the bill’s previous language could be interpreted as criminalizing even mainstream, short-term marketing efforts.
To address this, the updated bill now states: “The bill would specify that these provisions do not make unlawful game promotions or sweepstakes conducted by for-profit commercial entities on a limited and occasional basis as an advertising and marketing tool… that are not intended to provide a vehicle for the establishment of ongoing gambling or gaming.”
Additionally, the legislation confirms it will not interfere with the California State Lottery or the legal operations of gambling entities licensed under the Gambling Control Act. The term “gambling-themed games” has also been revised to simply “gambling” in the text.
Clarifying Intent and Liability
The latest amendment also introduces a new Section 1, which emphasizes that only those who “knowingly and intentionally” promote or facilitate online sweepstakes games using dual-currency systems will be held liable under the law. This change seeks to shield third-party service providers—such as payment processors, geolocation services, or media platforms—that may unknowingly support such games.
Further down in the bill, a clarification ensures that such third parties would only face legal consequences if they acted“knowingly and willfully.” These italicized words are a direct addition in the newest version of the bill. This builds on an earlier Senate committee amendment from mid-July that added the word “knowingly” and removed the word “person” from a provision that would have criminalized sweepstakes players.
Stakeholders Voice Mixed Reactions
Support for AB 831 remains strong among key players in California’s tribal gaming community. The Yuhaaviatam of San Manuel Nation, several other tribes, and the California Nations Indian Gaming Association (CNIGA) continue to back the bill. However, a growing number of dissenting voices have emerged.
Three smaller tribes—including the Kletsel Dehe Wintun Nation of the Cortina Rancheria, which recently partnered with sweepstakes giant VGW—have publicly opposed the bill. Publishers Clearing House, now under the ownership of a social gaming firm, has also expressed concern.
On the commercial side, opposition has surfaced from multiple cities with cardrooms, as well as the California Cities Gaming Authority. Back in July, a cardroom representative testified during a Senate hearing, voicing disappointment that the legislation failed to account for their operations.
AB 831 passed its final committee review on August 29 but was sent back for second reading following the September 3 amendment. Its path to a full Senate vote remains in progress as lawmakers continue to fine-tune its language and scope.
Source:
“California Senate amends proposed sweepstakes ban again to clarify intentions”, sbcamericas.com, Sep 4, 2025
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