California Governor Gavin Newsom has officially signed Assembly Bill 831 (AB 831) into law, imposing a statewide ban on online social games that feature sweepstakes elements. The legislation, effective January 1, 2026, follows months of debate and passed the California Senate and Assembly in September with bipartisan support.
The law effectively ends sweepstakes-style casinos and daily fantasy sports platforms within the state, a decision that has drawn criticism from tribal nations and industry groups. The Social Gaming Leadership Alliance (SGLA), a leading opponent, warned that the ban would curtail economic opportunities and limit consumer choice.
Jeff Duncan, Executive Director of SGLA, stated: “Voters, players who love online social games, California tribes and online social games operators all made their position clear: they didn’t want a ban on this popular, safe form of entertainment.”
He added: “We hoped that Governor Newsom would see past the anti-competitive efforts of the powerful, well-funded tribes behind this bill and veto AB 831, but he chose the easy, short-sighted path and turned his back on choice, innovation and economic gains.”
Economic Impact and Tribal Concerns
Research commissioned by the SGLA estimated that banning sweepstakes gaming could remove up to $1 billion in annual economic activity and result in $200 million to $300 million in lost potential tax revenue that regulation could have generated.
Several tribal nations, including the Kletsel Dehe Wintun Nation, Sherwood Valley Rancheria of Pomo Indians, Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria, opposed the legislation, arguing it undermines tribal sovereignty and disproportionately harms smaller tribes that do not operate established casinos.
Supporters of AB 831, including major tribal operators and legislators, defended the bill as a necessary measure to protect tribal gaming rights and curb unregulated betting activity. The California Nations Indian Gaming Association (CNIGA) backed the legislation, citing that sweepstakes games infringed upon the exclusive rights of tribes to offer gaming in the state.
California’s Place in the Sweepstakes Debate
California’s action marks one of the largest regulatory moves against sweepstakes gaming in the United States, given its population of over 39 million residents. Comparatively, New York has enacted similar legislation, which is awaiting Governor Kathy Hochul’s signature, while Florida’s attempt to ban sweepstakes casinos did not succeed.
The SGLA had requested that Governor Newsom veto the bill, citing research from Seven Letter Insight indicating 85% of respondents favored modernizing laws to regulate and tax sweepstakes operators. Duncan emphasized: “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 $1 billion out of the state’s economy.”
He urged: “We implore Governor Newsom to veto this bill and instead open the door for online social games to support economically disadvantaged tribal nations and the state’s economy while positioning California as a leader in next-generation gaming technology.”
Source:
“California Governor signs AB 831 into law, banning online social gaming with sweepstakes”, gamblinginsider.com, October 13, 2025
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