With an overwhelming vote of support, California lawmakers have passed a controversial bill aimed at shutting down sweepstakes-style casinos and daily fantasy sports operators in the state. The legislation – AB 831 – now sits on Governor Gavin Newsom’s desk, with opponents urgently calling for a veto.
The California State Assembly approved the bill 79-0 on the final day of the legislative session. The Senate had earlier passed the measure 63-0 after amending it to specifically target dual-currency sweepstakes platforms that mimic gambling products. If signed into law, the bill would make it a misdemeanor to operate or assist in running these types of online sites in California.
Opposition Mounts Amid Economic Concerns
Among the most vocal opponents is the Social Gaming Leadership Alliance (SGLA), which has shifted its focus to persuading the Governor not to sign the bill. The group argues that the economic fallout would be immediate and far-reaching.
“Beyond the fact that this bill would worsen economic disparities among California tribes, put California to the back of the line in terms of digital innovation in this space and take away a popular form of entertainment for residents, it will immediately strip $1bn out of the state’s economy,” said Jeff Duncan, Executive Director of SGLA.
Duncan also warned that instead of regulating a growing sector, the bill would dismantle economic opportunities for both operators and underserved tribal communities.
Tribal Divide Over Gambling Exclusivity and Access
Support for AB 831 has come from many of California’s tribes, particularly those aligned with the California Nations Indian Gaming Association, who view the legislation as protecting their gaming exclusivity. However, not all tribal voices have been in agreement.
Four tribes—the Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria—have publicly opposed the bill, citing concerns over lost economic potential.
The state assembly’s only Native American lawmaker, James Ramos of the Yuhaaviatam of San Manuel Nation, notably abstained from voting.
Industry Groups Warn of Broader Impact
Another organization, the Social and Promotional Games Association, has joined the SGLA in lobbying against AB 831. Critics argue that the bill’s original “gut-and-amend” process lacked transparency and that the legislation risks sweeping up legal promotional activities—such as those run by major food chains and charitable organizations.
Although lawmakers amended the language prior to its final reading to exempt conventional sweepstakes and lottery promotions, industry leaders remain unconvinced.
“AB831 is a flawed and rushed bill that lacks broad tribal consensus,” Duncan stated. “What California lawmakers should focus on instead is creating proper regulation that supports online social games, creates new revenue sources for the state and protects economic opportunities for all tribes.”
National Trend, but Not Without Pushback
California joins a growing number of states scrutinizing sweepstakes casinos. Legislatures in Connecticut, Montana, and New Jersey have passed similar bills this year. Yet not all have been enacted—New York’s Governor Kathy Hochul has yet to sign off on a comparable measure, and Louisiana Governor Jeff Landry vetoed his state’s bill, saying regulators already had sufficient authority.
Meanwhile, enforcement actions are ramping up nationwide. Several states, including Arizona and Michigan, have issued cease-and-desist letters to sweepstakes operators.
Source:
“California anti-sweepstakes bill: SGLA angles for Governor veto”, gamblinginsider.com, Sep 15, 2025.
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