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Legislation that would outlaw online sweepstakes casinos in California is now on Gov. Gavin Newsom’s desk after receiving unanimous approval in both chambers of the Legislature.
Assembly Bill 831 (AB 831), authored by Assemblymember Avelino Valencia (D-Anaheim), passed the Assembly 79-0 on September 12, following an equally smooth vote in the Senate. The measure prohibits sweepstakes-style platforms that mimic casino games, extending liability to operators, payment processors, affiliates, and any company supporting the industry.
If enacted, violations could carry misdemeanor charges, fines of up to $25,000, and even one year in county jail. Newsom has until October 12 to either sign the bill, veto it, or allow it to become law without his signature. Should it move forward, the new rules would take effect January 1, 2026.
For readers exploring new directions in online wagering, crypto-based casinos are becoming an increasingly relevant part of the discussion. While California’s AB 831 focuses on regulating sweepstakes-style platforms, the rise of blockchain gambling highlights how innovation continues to reshape the boundaries of digital gaming. Transparent transactions, decentralized systems, and fast crypto payments are driving interest in these platforms, even as regulators work to understand how they fit within existing legal frameworks. (Source: https://bitcoingamblingsites.com/)
Supporters of the bill say it protects California’s voter-approved system, which grants tribal governments exclusive rights to operate casino-style gaming.
“These illegal platforms erase the benefits of regulated gaming while exposing consumers to serious risks,” said James Siva, Chairman of the California Nations Indian Gaming Association (CNIGA). “AB 831 protects the economic engine that generates nearly $25 billion for California communities and supports more than 112,000 jobs statewide.”
The Yuhaaviatam of San Manuel Nation echoed those sentiments. Chairwoman Lynn Valbuena pointed out that tribes have “upheld the will of California voters by operating gaming with integrity” for more than 20 years, reinforcing the narrative that unregulated sweepstakes operators threaten a well-established system.
For lawmakers and tribal leaders alike, AB 831 represents another step in reaffirming tribal exclusivity–a cornerstone of California’s gaming economy.
Not everyone is applauding the legislation. Operators and industry groups argue the bill could devastate a thriving segment of California’s digital economy.
“California is on the verge of throwing away a billion-dollar industry,” said Jeff Duncan, Executive Director of the Social Gaming Leadership Alliance (SGLA). He pointed to reports showing sweepstakes casinos contribute roughly $1 billion annually, with more than $700 million spent on advertising through California-based companies.
According to Duncan, shutting the door outright would hurt consumers, digital innovation, and even some tribal communities that might have pursued partnerships with sweepstakes platforms. For advocates of digital wagering, AB 831 represents a missed opportunity to regulate and benefit from an already popular form of entertainment.
The debate has also exposed divisions within the tribal gaming community itself. While large, established tribal casinos back AB 831, smaller tribes with partnerships in the sweepstakes space worry they will lose vital revenue.
The Kletsel Dehe Wintun Nation, Sherwood Valley Band of Pomo Indians, and Mechoopoda Indian Tribe of Chico Rancheria have all voiced concerns. Each has deals with sweepstakes operators that could be disrupted if the law takes effect, according to reporting by Deadspin.
For these tribes, AB 831 looks less like consumer protection and more like a move that entrenches the dominance of larger casinos. Critics argue the law could deepen existing economic disparities among California tribes, cutting off growth opportunities for smaller communities.
AB 831 is not the first measure aimed at reinforcing tribal exclusivity in California. In September 2024, Gov. Newsom signed Assembly Bill 549, which gave tribes the right to sue private cardrooms accused of sidestepping exclusivity rules. That law targeted cardrooms that used third parties to fund games played against the house, like blackjack.
Under AB 549, tribes had until April 1, 2025, to file lawsuits against cardrooms that allegedly violated their rights. The law was a signal that Sacramento lawmakers remain committed to maintaining the integrity of tribal gaming compacts.
AB 831 continues that trajectory, this time extending the scope of protection to the digital sphere, where sweepstakes platforms have been growing quickly but operating largely outside the regulatory framework.
The decision now rests with Gov. Newsom. While he has not publicly indicated support or opposition, the stakes are clear. Signing AB 831 would put an end to sweepstakes casinos in California by early 2026. A veto, however, could reopen debate about how best to regulate online gambling in a rapidly changing digital environment.
The broader industry will be watching closely. Crypto gambling, sports betting, and other emerging forms of online wagering are still subjects of ongoing debate. California, with its massive population and political weight, could set a precedent for how other states approach non-traditional gambling models in the years to come.
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