California, September 27, 2025
News Summary
California’s Legislature has unanimously passed Assembly Bill 831 aimed at banning online sweepstakes casinos that simulate traditional casino games. The bill achieved a remarkable 79-0 vote in the Assembly and must be signed by Governor Gavin Newsom by October 12 to take effect on January 1, 2026. The legislation places accountability on operators and associates for violations, potentially resulting in significant penalties. While tribal governments support the bill to protect regulated gaming frameworks, there is opposition from some sweepstakes operators and smaller tribal entities concerned about fairness.
California
California’s Legislature has unanimously passed Assembly Bill 831, which seeks to outlaw online sweepstakes casinos that imitate traditional casino games. This significant measure received a remarkable 79-0 vote in the Assembly on September 12 after clearing the Senate without opposition.
If signed by Governor Gavin Newsom by October 12, this bill will take effect on January 1, 2026. The legislation holds operators, payment processors, affiliates, and supporting companies accountable for violations, which could result in misdemeanor charges, fines up to $25,000, and potential imprisonment of up to one year in county jail.
Supporters, including tribal governments and the California Nations Indian Gaming Association (CNIGA), argue that AB 831 protects the state’s voter-approved framework that grants tribes exclusive rights to casino-style gaming. Tribal leaders contend that these illegal platforms threaten the regulated gaming benefits and consumer safety, affecting nearly $25 billion generated for California communities and supporting over 112,000 jobs statewide.
Among the tribes advocating for the bill, the Yuhaaviatam of San Manuel Nation highlighted their successful and ethical gaming operations over the past two decades. However, the bill faces opposition from some sweepstakes operators and smaller tribal entities, including the Kletsel Dehe Wintun Nation, Sherwood Valley Band of Pomo Indians, and Mechoopoda Indian Tribe of Chico Rancheria, who argue that the measure disproportionately favors larger tribal casinos at the expense of smaller tribes seeking revenue streams.
The legislation has also drawn criticism from the Social Gaming Leadership Alliance (SGLA), which describes it as a potential threat to a billion-dollar industry. They argue this law could harm consumers and stifle digital innovation, urging Governor Newsom to veto it.
The primary goal of AB 831 is to close loopholes previously exploited by sweepstakes operators claiming their platforms are not gambling but rather promotional games. If enacted, the bill would mean consumers could no longer access popular online sweepstakes casino platforms that offer redeemable prizes.
It is important to note that this legislation does not legalize sports betting or online casinos; rather, it reinforces existing prohibitions against unregulated gambling while allowing for licensed tribal casinos and legitimate marketing sweepstakes. Previous legislation related to gambling in California includes Assembly Bill 549, signed by Newsom in September 2024, which grants tribes the ability to sue private cardrooms for allegedly circumventing exclusivity rules.
Concerns have also been raised that banning sweepstakes casinos might push Californians to seek out unregulated gambling options through offshore websites. As of now, Governor Newsom has not publicly indicated his stance on AB 831.
Before the bill can be sent to the Governor, the Assembly must agree with recent amendments from the Senate. Once finalized, this legislation could reshape California’s gambling landscape significantly.
Key Features of AB 831
| Feature | Description |
|---|---|
| Unanimous Approval | Passed Assembly with a 79-0 vote and cleared Senate without opposition. |
| Effective Date | Will take effect on January 1, 2026, if signed by the Governor. |
| Liability | Operators and affiliates could face fines up to $25,000 and jail time for violations. |
| Support and Opposition | Supported by tribal governments; opposed by smaller tribes and sweepstakes operators. |
| Aim | To close loopholes and protect California’s regulated gaming framework. |
FAQ Section
What is Assembly Bill 831?
Assembly Bill 831 targets online sweepstakes casinos that mimic casino games and has received unanimous approval from both chambers of California’s Legislature.
Who authored the bill?
The bill was authored by Assemblymember Avelino Valencia (D-Anaheim) and passed the Assembly with a vote of 79-0 on September 12 after clearing the Senate without opposition.
What happens if the bill is signed by the Governor?
If signed by Governor Gavin Newsom by October 12, the bill will take effect on January 1, 2026.
What penalties do operators face under the bill?
The measure extends liability to operators, payment processors, affiliates, and companies that support the sweepstakes industry, making violations subject to misdemeanor charges, fines of up to $25,000, and up to one year in county jail.
Who supports the bill?
Supporters of the bill, including tribal governments and the California Nations Indian Gaming Association (CNIGA), argue it protects the state’s voter-approved framework that grants tribes exclusive rights to casino-style gaming.
Who opposes the bill?
Opposition comes from sweepstakes operators and smaller tribes, including the Kletsel Dehe Wintun Nation, Sherwood Valley Band of Pomo Indians, and Mechoopoda Indian Tribe of Chico Rancheria.
What does the bill not legalize?
The legislation does not legalize sports betting or online casinos; it reinforces prohibitions on unregulated gambling while exempting licensed tribal casinos and legitimate marketing sweepstakes.
What previous related legislation exists?
Previous related legislation includes Assembly Bill 549, signed by Newsom in September 2024, which allows tribes to sue private cardrooms that allegedly circumvent exclusivity rules.
Deeper Dive: News & Info About This Topic
- Tribal Business News: California State Legislature Sends Online Sweepstakes Ban to Governor’s Desk
- Wikipedia: Sweepstakes
- Sports Handle: California Senate Passes Bill to Ban Online Sweepstakes Casinos
- Google Search: California sweepstakes casinos
- Edhat: California Senate Moves Toward Ban on Sweepstakes Casinos
- Encyclopedia Britannica: Sweepstakes
- Action Network: Sweepstakes Casinos Face Extinction as California Advances AB 831
- Google News: California gambling legislation
- Legal Sports Report: California Sweepstakes Ban Bill Passes Senate Unanimously
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
