California Senate Unanimously Passes Ban on Sweepstakes Gambling

A major legislative move unfolded in California as Assembly Bill 831 (AB 831) cleared the Senate with complete bipartisan backing. The bill, aimed at outlawing sweepstakes-style gambling and daily fantasy sports (DFS), secured a unanimous 36-0 vote on September 8, propelling it to the State Assembly for further consideration.

Originally introduced by Assemblyman Avellino Valencia, the bill took the "gut-and-amend" route, replacing the contents of an existing bill to expedite its legislative journey. Despite being reshaped significantly along the way, AB 831 has not received a single opposing vote at any stage.

If passed by the Assembly by the September 12 deadline, the legislation will land on Governor Gavin Newsom’s desk for final approval. The Governor then has until October 12 to either sign or veto the bill.

What AB 831 Seeks to Ban

The core aim of AB 831 is to outlaw sweepstakes-style online casinos that use dual-currency models and simulate traditional gambling or sports betting. If enacted, it would criminalize not just the operators but also those knowingly supporting such operations—ranging from payment processors and platform providers to content developers and affiliate marketers.

Amendments to the bill in recent weeks clarified that individual players would not face penalties. Lawmakers also added language to ensure that legitimate non-gambling promotional sweepstakes, such as McDonald’s Monopoly or Starbucks Rewards, remain unaffected.

Tribes Divided Over Potential Economic Impact

Support and criticism of the bill have emerged from tribal communities. While key organizations like the California Nations Indian Gaming Association (CNIGA) and large tribes such as the Yuhaaviatam of San Manuel Nation have backed the bill, four smaller tribes voiced opposition.

These dissenting groups include the Kletsel Dehe Wintun Nation of the Cortina Rancheria and the Mechoopda Indians of Chico Rancheria, both of which have partnerships with sweepstakes and social gaming companies like VGW and Yellow Social Interactive.

On the day of the Senate vote, members of the opposing tribes staged a protest outside the State Capitol in Sacramento. Their main argument centered on how the bill could hinder economic opportunities for less affluent tribes.

Still, broader tribal sentiment leans in favor of the bill, as it aims to preserve the tribes' existing control over legal gambling operations within their reservations.

Industry Reactions and Legal Fallout

The gaming industry appears to be reacting quickly to the bill’s progress and related legal pressure. Recently, the Los Angeles City Attorney’s Office filed a civil lawsuit against Stake.us, accusing the platform of operating illegal gambling activities in the state. The suit also named several high-profile content suppliers - Evolution, Hacksaw Gaming, and Pragmatic Play—as defendants.

Following the lawsuit, some of these companies swiftly withdrew from California. Pragmatic Play even confirmed that it would cease supplying sweepstakes gaming operators across the entire U.S. Likewise, Playtech—though not implicated in the case—also pulled out of California, halting its services to sweepstakes platforms in the state.

Despite strong backing in both legislative chambers and broad tribal support, the future of AB 831 now rests with the Assembly and ultimately, Governor Newsom. While he hasn’t formally aligned with the state Attorney General Rob Bonta’s view that DFS constitutes illegal betting, it would be surprising if he blocked the bill.

Source:

“Anti-sweepstakes bill passes California Senate vote unanimously”, gamblinginsider.com, Sep 9, 2025.