A bill that would ban sweepstakes casinos and sportsbooks in California is making more and more progress in the state legislature.
Key Takeaways
- California lawmakers are advancing Assembly Bill 831, which aims to ban sweepstakes casinos and sportsbooks using dual-currency models for online gambling.
- The bill is backed by Native American gaming groups, such as the Yuhaaviatam of San Manuel Nation and CNIGA, who argue these platforms violate California's tribal gaming framework and exploit legal loopholes.
- Yet opposition to the bill is there, with organizations like the Association of National Advertisers warning it could harm legitimate promotional practices.
The California State Senate’s Standing Committee on Public Safety met on Tuesday and passed an amended version of Assembly Bill 831 by a vote of 6-0, sending the legislation to the chamber’s Appropriations Committee.
If it becomes law, A.B. 831 would prohibit operating online sweepstakes that use a “dual currency” model for casino-like wagering, including sports betting. The bill contains penalties for running an online sweeps platform, by creating a misdemeanor that can result in up to a year of jail time and fines of as much as $25,000 for offenders.
“In recent years, online sweepstakes casinos have increased in popularity by exploiting ‘no purchase necessary’ and using dual currency models to exploit a gray area in the law,” said Assemblymember Avelino Valencia, the bill’s sponsor in the legislature, during the committee meeting on Tuesday. “To be clear, players are able to convert these winnings to actual cash, and that's the issue.”
The California Senate's Public Safety Committee now taking up the anti-sweepstakes casino bill, AB831. More amendments being proposed to ensure the legislation doesn't have unintended targets, such as sweeps users. pic.twitter.com/q2xkKOS21O
— Geoff Zochodne (@GeoffZochodne) July 15, 2025
Valencia added that he was accepting amendments from the committee to “shield” entities that may unknowingly support online sweepstakes and to protect individual players (the bill has included provisions targeting entities that support sweeps, such as payment processors).
The Democratic lawmaker also said he is speaking with the state’s card rooms to ensure they are not “inadvertently” targeted by the legislation.
Respect the deal
A.B. 831 was first amended in the Senate in June to become an anti-sweeps bill. It was then referred to the chamber's committee on governmental organization, which passed it unanimously on July 8 and re-referred it to the public safety committee.
The bill is co-sponsored and supported by Native American groups in the state, namely the Yuhaaviatam of San Manuel Nation, the California Nations Indian Gaming Association (CNIGA), and the Tribal Alliance of Sovereign Indian Nations (TASIN).
“Tribal gaming exclusivity, granted by the voters of California, must be honored,” said the Yuhaaviatam of San Manuel Nation in a written argument in favor of the bill. “The state’s voters have consistently shown their trust in Native American tribes to operate gaming facilities responsibly and ethically. Allowing unregulated and predatory sweepstakes operators to bypass these regulations undermines that trust and integrity of California’s gaming policies.”
Several other state legislatures have taken action against sweepstakes casinos and sportsbooks this year, such as Connecticut, New Jersey, and New York. California lawmakers are now trying to do the same, throwing the weight of the most populous state in the U.S. at a form of online gambling that competes with other forms of wagering.
There is no legalized online sports betting in California. So, in the meantime, lawmakers and tribal gaming leaders are pushing to clarify what is and what is not legal in the state.
A sweeping effort
The proposed sweeps crackdown fits into a broader crackdown on unauthorized gambling, urged on by casino-operating Native American tribes. The effort includes the recent opinion of the state’s attorney general that all forms of daily fantasy sports contests are illegal in the state, as well as the pushback from CNIGA and others against federally regulated prediction markets.
However, the sweeps industry is not without allies in California. On Monday, the Social and Promotional Games Association (SPGA) said a “broad coalition of organizations,” such as the California arm of the American Civil Liberties Union and the Association of National Advertisers, are standing up against A.B. 831.
“This diverse coalition, including civil liberties advocates, leading businesses, and industry groups, reflects a shared belief that the bill, as written, could have unintended consequences for lawful promotional practices without offering clear consumer protections,” an SPGA spokesperson said in a press release.
On Tuesday, attorney Bill Gantz, testifying on behalf of the Social Gaming Leadership Alliance (SGLA), said the games that A.B. 831 seeks to ban are not illegal and that social casino games where people pay to play have been in the state for more than a decade.
“If California regulated and taxed this industry, and took some time to study it and had a fulsome process, you would learn that, rather than banning it, the state could collect at least $149 million of sales tax revenue a year,” Gantz added. “California should regulate, not criminalize ... this established form of entertainment. Please pause this fast-track legislation, study the social casino space, and then make a measured and worthwhile response.”
