California, September 27, 2025
News Summary
The California Legislature has unanimously passed Assembly Bill 831, targeting online sweepstakes casinos that mimic traditional casino games. Authored by Assemblymember Avelino Valencia, the bill received overwhelming support, passing with a 79-0 vote in the Assembly and clearing the Senate without opposition. If signed by Governor Gavin Newsom by October 12, the legislation will take effect on January 1, 2026. The bill extends liability to various stakeholders and imposes significant penalties for violators, supported by tribal governments while facing opposition from some smaller tribes and sweepstakes operators.
California—The California Legislature has unanimously passed Assembly Bill 831, aimed at outlawing online sweepstakes casinos that resemble traditional casino games. The bill, authored by Assemblymember Avelino Valencia from Anaheim, received overwhelming support, passing the Assembly with a vote of 79-0 on September 12 and clearing the Senate without opposition. If signed by Governor Gavin Newsom by October 12, the bill will go into effect on January 1, 2026.
The legislation extends liability to various stakeholders in the sweepstakes industry, including operators, payment processors, affiliates, and supporting companies. Violators of the new regulations could face misdemeanor charges, fines of up to $25,000, and even up to one year in county jail.
Supporters of AB 831, including tribal governments and the California Nations Indian Gaming Association (CNIGA), argue that the bill is essential for protecting the state’s voter-approved framework, which grants tribes exclusive rights to casino-style gaming. The CNIGA reaffirmed that illegal online platforms undermine the benefits that regulated gaming provides to California communities, which generates nearly $25 billion and supports over 112,000 jobs statewide.
The Yuhaaviatam of San Manuel Nation has expressed its support for the bill, underscoring the integrity with which tribes have conducted gaming operations for over 20 years. On the other hand, opposition has surfaced from sweepstakes operators and smaller tribes, including the Kletsel Dehe Wintun Nation, Sherwood Valley Band of Pomo Indians, and the Mechoopoda Indian Tribe of Chico Rancheria. These groups argue that the bill disproportionately favors larger tribal casinos while limiting potential revenue for smaller tribes.
The Social Gaming Leadership Alliance (SGLA) also criticized AB 831, stating that it could eradicate a billion-dollar industry and negatively impact consumers and digital innovation. The SGLA has urged Governor Newsom to veto the bill. Supporters aim to close loopholes currently exploited by sweepstakes operators, who often argue that their platforms are promotional games rather than gambling.
If enacted, AB 831 would prevent consumers from engaging with popular online sweepstakes casino platforms that reward players with redeemable prizes. Notably, the legislation does not legalize sports betting or online casinos; it instead reinforces existing prohibitions against unregulated gambling while exempting licensed tribal casinos and legitimate marketing sweepstakes.
This legislative move follows previous actions, including Assembly Bill 549, signed by Newsom in September 2024, which allows tribes to sue private cardrooms that allegedly violate exclusivity rules. Concerns have been raised that banning sweepstakes casinos could push Californians toward unregulated gambling options found on offshore websites. As of now, Governor Newsom has not publicly commented on his stance regarding AB 831.
The Assembly must agree with the Senate’s amendments before the bill can proceed to Governor Newsom for final approval.
FAQ
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.
When will the bill take effect?
If signed by Governor Gavin Newsom by October 12, the bill will take effect on January 1, 2026.
What are the penalties for violating the new regulations?
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 and opposes the bill?
Supporters include tribal governments and the California Nations Indian Gaming Association (CNIGA), while opposition comes from sweepstakes operators and smaller tribes, including Kletsel Dehe Wintun Nation, Sherwood Valley Band of Pomo Indians, and Mechoopoda Indian Tribe of Chico Rancheria.
Key Features of Assembly Bill 831
| Feature | Description |
|---|---|
| Objective | To outlaw online sweepstakes casinos mimicking casino games |
| Authors | Assemblymember Avelino Valencia (D-Anaheim) |
| Vote Approval | 79-0 in the Assembly; Unanimous in the Senate |
| Potential Effectiveness | January 1, 2026 if signed by Governor Newsom by October 12 |
| Penalties for Violating | Misdemeanor charges, up to $25,000 fines, up to 1 year jail |
| Supporters | Tribals governments and CNIGA |
| Opposition | Sweepstakes operators and smaller tribes |
Deeper Dive: News & Info About This Topic
- Tribal Business News
- Wikipedia: Gambling in California
- Sports Handle
- Covers: Sweepstakes Casinos
- ABC10
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