Lines Are Drawn
California has entered the growing national sweepstakes casino debate with Assembly Bill 831 – a sweeping proposal to shut down online “dual currency” gaming platforms that mimic real-money gambling.
Filed on June 24 by Assemblymember Avelino Valencia, the bill drew immediate battle lines between tribal gaming leaders and online operators, each accusing the other of undermining California’s gambling ecosystem.
What the Bill Actually Proposes
AB 831 targets online platforms that use sweepstakes models to simulate casino-style play, specifically those using virtual currencies with cashout mechanics. The bill proposes a near-total ban on these systems, criminalizing not only the games themselves but also the digital and financial infrastructure supporting them.
That includes payment processors, financial institutions, geolocation firms, platform providers, and even affiliate marketers who promote such platforms.
Violators could face up to $25,000 in fines and one year in state prison.
Assemblymember Valencia made his position clear:
“We cannot look the other way while these platforms exploit legal grey areas. These operations undermine the voter-approved framework that affirms Tribal governments’ sovereign right to conduct gaming in California.”
Tribal Support
California’s tribal leaders didn’t hesitate to line up behind AB 831. The Yuhaaviatam of San Manuel Nation, California Nations Indian Gaming Association (CNIGA), and the Tribal Alliance of Sovereign Indian Nations (TASIN) all co-sponsored the bill.
Lynn Valbuena, Chairwoman of the San Manuel Nation, emphasized what’s at stake:
“Illegal online gaming now threatens this foundation, compromising voter-approved law and putting Californians at risk.”
James Siva, CNIGA Chairman, also added:
“Tribal government gaming contributes nearly $25 billion to California’s economy, sustains over 112,000 jobs, and funds critical community programmes… These illegal platforms erase the benefits of regulated gaming while exposing consumers to serious risks.”
Some observers have also highlighted that San Manuel operates an online social casino platform called PlayOnline, which includes a game—The Factory Sweepstakes—where users can win real-money casino credits. While the site doesn’t offer direct cash prizes, the setup has raised questions about whether the tribe’s own gaming model could be seen as similar to the ones it’s trying to ban.
Operator Backlash & “Backroom Deal” Accusations
The Social and Promotional Gaming Association (SPGA), which represents sweepstakes gaming platforms, didn’t hold back.
“This isn’t how sound policy gets made,” the group said in a public statement. “A last-minute effort to outlaw legal digital games, without public debate, expert input, or economic analysis, sends a chilling message to entrepreneurs, innovators, and investors across the state.”
Jeff Duncan, Executive Director of the Social Gaming Leadership Alliance and a former U.S. congressman, doubled down:
“The rushed proposal subverts proper process and cuts Californians off from popular free-to-play entertainment.”
Operators argue lawmakers are putting politics ahead of economic growth, even as California faces bigger crises like wildfires, housing shortages, and aging infrastructure.
Context: A National Movement
California isn’t the first state to make a move, it’s just the biggest so far.
Montana and Connecticut have already passed laws banning sweepstakes-style gaming platforms, and other states like Louisiana and New York are actively considering similar measures. In every case, the pushback is being led or heavily influenced by tribal or state-licensed gaming groups.
With California tribal gaming generating an estimated $25 billion annually and supporting over 112,000 jobs, lawmakers are under pressure to defend existing gaming ecosystems from unregulated digital disruption.
What’s Next for AB 831
The bill now heads into California’s legislative process, where it could face amendments, public hearings, and intense lobbying on both sides.
Tribal groups are expected to double down, citing legal clarity and public safety. Meanwhile, operators will fight to carve out exceptions, delay enforcement, or even kill the bill outright. With national momentum building, California’s next move could tip the scales across the U.S.
Whatever happens next, it won’t go unnoticed.
Blaise Luis
