California’s AB 831 Sweepstakes Casino Ban Bill Heads to Senate

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California's AB 831 Sweepstakes Casino Ban Bill Heads to Senate

California lawmakers are moving closer to outlawing sweepstakes casinos after Assembly Bill 831 advanced to the Senate floor. 

The bill, which targets unregulated online casinos that mimic real money casinos through dual-currency systems, has drawn strong support from tribal gaming groups but faces pushback from major industry stakeholders. 

With just weeks left in the legislative session, the fate of AB 831 could reshape the state’s gambling landscape.

Overview of AB 831 Leading to Senate Hearing

California’s AB 831 advances toward the Senate floor after key committee approvals. The Senate Appropriations Committee passed the bill unanimously, 7-0, during a suspense hearing on August 29, 2025. 

Previously, the Senate’s Governmental Organization Committee passed AB 831 unanimously, 10-0, forwarding it to Public Safety. Subsequent hearings in the Public Safety Committee also approved the bill without dissent. 

The bill originally emerged mid-session by overhauling unrelated legislation. Lawmakers amended it in June to target “sweepstakes casinos” using a “dual currency” model. As amended, it criminalizes knowingly supporting or operating such platforms. 

AB 831 proposes misdemeanor penalties up to one year in jail and fines between $1,000 and $25,000. If passed, AB 831 would ban unregulated sweepstakes casinos, including some online casinos that mimic real money casinos. 

Because AB 831 has been completely rewritten since its initial passage, the Assembly must re-approve the measure if it gets passed. Lawmakers face a tight deadline, as California’s legislative session is scheduled to adjourn on October 15.

Supporters and Opponents: Tribes, Publishers Clearing House, and Others

Supporters of AB 831 include major Native American tribes and tribal gaming organizations. The Yuhaaviatam of San Manuel Nation, and the California Nations Indian Gaming Association (CNIGA), and TASIN co-sponsor the bill. They argue it protects tribal sovereignty and gaming exclusivity. 

Tribal leaders say sweepstakes casinos bypass regulated frameworks and threaten tribal gaming income. 

Conversely, some tribes oppose the bill. The Big Lagoon Rancheria, Sherwood Valley Band of Pomo Indians, and Kletsel Dehe Wintun Nation argue it undermines tribal self-determination.

Opposition also comes from industry trade groups and promotional brands. The Social and Promotional Games Association (SPGA) and Social Gaming Leadership Alliance (SGLA) criticize the bill’s rushed process. 

Attorney Bill Gantz, testifying on behalf of SGLA, argued that the games AB 831 targets are not illegal and have operated in California 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 said. 

“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,” Gantz added.

They warn it threatens legitimate sweepstakes casinos and marketing practices. Notably, Publishers Clearing House now opposes the legislation. The ACLU and Association of National Advertisers also joined opposition. 

California stands at a crossroad for sweepstakes casinos, online casinos, and real money casinos. AB 831’s fate will determine whether dual-currency sweepstakes operations survive or get shut down.