Two major sweepstakes casino trade groups are fighting back against California’s Assembly Bill 831, a law that would effectively ban sweepstakes operations in the state.
Yet, the Social Gaming Leadership Alliance (SGLA) and the Social and Promotional Games Association (SPGA) both issued strong statements condemning the proposal, which Assemblymember Avelino Valencia introduced.
Key takeaways
- AB-831 would ban casinos that use dual currency systems.
- Sweepstakes groups oppose the ban, citing fairness and consumer choice.
- Native American tribes support the bill, saying it defends their sovereignty and state gaming laws.
Valencia’s bill would ban online sweepstakes casinos using a dual currency model that mimics real-money gambling. The move is a significant intervention in the growing push to regulate or outlaw these platforms across the U.S., following recent bans in Connecticut and Montana.
AB-831 targets not only the operators of such games but also criminalizes any supporting infrastructure, including payment processors, game suppliers, and media affiliates, with potential fines of up to $25,000 and a maximum of one year in state prison.
However, the SGLA, led by former Congressman Jeff Duncan, says the bill would force players to use unsafe black market alternatives. Duncan also warned popular sweepstakes-style promotions from companies like McDonald’s and Reader’s Digest could be at risk.
The SPGA echoed these concerns, describing the measure as a ‘backroom ban’ that's been launched without proper debate or analysis.
“This isn’t how sound policy gets made,” said an SPGA spokesperson. “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.”
Tribes and sweepstakes operators clash over anti-sweepstakes bill
However, tribal interests strongly support the legislation. Tribal entities such as the Yuhaaviatam of San Manuel Nation, the California Nations Indian Gaming Association (CNIGA), and the Tribal Alliance of Sovereign Indian Nations (TASIN) co-sponsored the bill.
The Yuhaaviatam Tribal Council warned illegal sweepstakes platforms threaten decades of regulated tribal gaming and essential public services gaming revenues fund.
However, critics point out that the San Manuel Nation itself runs a sweepstakes-style game through PlayOnline, where users can win real-money casino credits.
SPGA urges other states to rethink sweepstakes ban
As California considers AB-831, sweepstakes trade group SPGA is also sounding the alarm in New York. The organization called on Gov. Kathy Hochul to veto Senate Bill S5935A, which the SPGA says would criminalize early-stage gaming innovation and scare off tech investors.
“This bill doesn’t just target sweepstakes. It sends a chilling message to anyone looking to invest in the next generation of gaming,” an SPGA spokesperson said.
S5935A passed the state Assembly last week and awaits Hochul’s signature before it's signed into law. The bill would also penalize investors involved in online games that award cash or equivalents, leaving key definitions to the unelected New York State Gaming Commission's discretion.
