Legislative Path of AB 831
AB 831 was introduced in February 2025 by Assemblymember Avelino Valencia as a routine update to tribal gaming compacts. During the legislative process, amendments expanded the measure into a direct prohibition of sweepstakes-style casinos.
- The Assembly approved the bill 77–0 in May.
- The Senate Public Safety Committee advanced it on a 6–0 vote.
- The Appropriations Committee cleared it from its suspense file with a 7–0 vote in late August.
- On September 3, the bill was read a third time, amended, and sent for a second reading, setting up a full floor vote.
If passed by a majority of the Senate, AB 831 will return to the Assembly for concurrence before heading to Governor Gavin Newsom’s desk.
Provisions of the Bill
The legislation targets online sweepstakes casinos that use dual-currency systems – commonly Gold Coins and Sweeps Coins – to simulate casino-style play. It introduces new definitions in California’s Business and Professions Code and creates criminal penalties for operators and their business partners.
Key measures include:
- Defining sweepstakes casinos as internet-accessible games simulating slots, poker, table games, lotteries, sports betting, or bingo that award cash or equivalents.
- Imposing misdemeanor penalties, including fines from $1,000 to $25,000 and up to one year in county jail.
- Extending liability to vendors, payment processors, and affiliate marketers who knowingly support the platforms.
- Exempting players, who are considered consumers rather than accomplices.
Tribal Support and Opposition
Support for AB 831 has come from major tribal groups, including the Yuhaaviatam of San Manuel Nation, the California Nations Indian Gaming Association, and the Tribal Alliance of Sovereign Indian Nations. These organizations argue that sweepstakes casinos erode tribal exclusivity and threaten the $25 billion tribal gaming industry that employs more than 112,000 people in California.
Not all tribes are aligned. Smaller groups such as the Kletsel Dehe Wintun Nation and Big Lagoon Rancheria oppose the bill, criticizing its “gut-and-amend” process and warning that it eliminates digital economic opportunities for tribes without resort casinos.
Industry and Civil Liberties Concerns
The bill has drawn sharp criticism from the Sweepstakes Promotion Gaming Association and the Social Gaming Leadership Alliance, who argue that AB 831 unfairly targets digital entertainment platforms and could criminalize legitimate marketing models.
Publishers Clearing House has also raised concerns, warning that the bill’s broad language could unintentionally impact promotional sweepstakes outside the gaming sector. Civil liberties advocates, including the American Civil Liberties Union, caution that vague drafting risks overreach and unintended consequences.
National Context
California is part of a wider movement by states to rein in sweepstakes casinos. Montana has already passed restrictions, while New York, Connecticut, and Nevada have advanced or considered similar legislation. Louisiana has also debated comparable measures. Legal analysts suggest that if AB 831 becomes law, California could set a precedent for future state-level regulation of sweepstakes gaming.
What Happens Next
AB 831 requires 21 votes in the 40-member Senate to pass. With the legislative session ending in September, lawmakers face a limited timeframe to act.
If approved, the bill will return to the Assembly for concurrence before being presented to Governor Newsom. Whatever its immediate outcome, the debate has placed sweepstakes casinos firmly in California’s policy spotlight, and other states are closely watching the results.
Blaise Luis
