California, September 27, 2025
News Summary
California has passed Assembly Bill 831, targeting online sweepstakes casinos that mimic traditional casino games. With unanimous support, the bill extends liability to various stakeholders in the sweepstakes industry and imposes penalties for violations. Supporters, including tribal governments, argue it is crucial for the integrity of California’s gaming framework, while opponents fear it may negatively impact smaller tribes. If signed into law, AB 831 will take effect on January 1, 2026.
California has taken a significant legislative step to crack down on online sweepstakes casinos with the passage of Assembly Bill 831. This measure targets platforms that imitate traditional casino games and has gained support from lawmakers across the political spectrum, passing with unanimous approval from both the Assembly and the Senate.
The bill, authored by Assemblymember Avelino Valencia (D-Anaheim), received a 79-0 vote in the Assembly on September 12, after moving through the Senate without opposition. If signed into law by Governor Gavin Newsom before the October 12 deadline, AB 831 will come into effect on January 1, 2026, bringing significant changes to the online gambling landscape in California.
AB 831 extends liability to various players in the sweepstakes ecosystem, including operators, payment processors, affiliates, and companies that support the industry. The legislation imposes penalties for violations, which can include misdemeanor charges, fines of up to $25,000, and potential jail time of up to one year.
Supporters, including tribal governments and the California Nations Indian Gaming Association (CNIGA), argue that the bill is crucial for maintaining the integrity of the state’s voter-approved gaming framework. Tribal leaders assert that illegal online platforms not only threaten the revenues generated by regulated gaming—which amount to nearly $25 billion for California communities—but also jeopardize over 112,000 jobs statewide.
The Yuhaaviatam of San Manuel Nation also endorses the legislation, underscoring that tribes have conducted their gaming operations with integrity for over two decades. They view the bill as a necessary measure to protect the industry and its economic contributions.
Opposition exists, however, from various 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 AB 831 favors larger tribal casinos and may restrict revenue opportunities for smaller tribes, which often rely on such earnings to support their communities.
The Social Gaming Leadership Alliance (SGLA) has criticized the bill for potentially threatening a billion-dollar industry and negatively impacting consumers and digital innovation. They have urged Governor Newsom to reconsider the legislation and veto it.
The core objective of the bill is to eliminate loopholes that allow sweepstakes operators to assert their platforms are promotional games rather than games of chance. If enacted, AB 831 will close access to popular sweepstakes casino platforms that provide redeemable prizes to players.
It is important to note that the legislation does not legalize sports betting or online casinos; instead, it reinforces existing prohibitions against unregulated gambling while still exempting licensed tribal casinos and legitimate marketing sweepstakes. This follows previous related legislative efforts, such as Assembly Bill 549, signed by Newsom in September 2024, allowing tribes to sue private cardrooms that allegedly violate exclusivity rules.
Critics have expressed concerns that by banning sweepstakes casinos, California may push residents towards unregulated gambling options offered by offshore websites. Governor Newsom has not publicly stated his position on AB 831 as of now, and the Assembly must concur with legislative amendments from the Senate before the bill can move forward for his consideration.
Frequently Asked Questions (FAQs)
What does Assembly Bill 831 target?
Assembly Bill 831 targets online sweepstakes casinos that mimic casino games.
What was the approval status of the bill?
The bill received unanimous approval from both chambers of California’s Legislature.
Who authored AB 831?
The bill was authored by Assemblymember Avelino Valencia (D-Anaheim).
What are the penalties for violations of AB 831?
Violations are subject to misdemeanor charges, fines of up to $25,000, and up to one year in county jail.
Who supports AB 831?
Supporters include tribal governments and the California Nations Indian Gaming Association (CNIGA).
What concerns do opposers of the bill raise?
Opponents argue that it favors larger tribal casinos and limits revenue streams for smaller tribes.
When will AB 831 take effect if signed into law?
If signed by Governor Gavin Newsom, the bill will take effect on January 1, 2026.
Key Features of Assembly Bill 831
| Feature | Description |
|---|---|
| Target | Online sweepstakes casinos mimicking casino games |
| Approval | Unanimous support from California Legislature |
| Penalties | Misdemeanor charges, fines up to $25,000, and up to one year in jail |
| Supporters | Tribal governments and CNIGA |
| Opposition | Smaller tribes and sweepstakes operators |
| Effective Date | January 1, 2026, if signed into law |
Deeper Dive: News & Info About This Topic
- Tribal Business News: California State Legislature Sends Online Sweepstakes Ban to Governor’s Desk
- Edhat: California Senate Moves Toward Ban on Sweepstakes Casinos
- ABC10: California Targets Online Casino Sweepstakes with New Bill
- Covers: Sweepstakes Casinos
- Wikipedia: Online Gambling
- Google Search: Sweepstakes Casinos California
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COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, 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 OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
