California’s Anti-Sweepstakes Bill Heads to Governor’s Desk After Final Assembly Approval
California’s bill to ban online sweepstakes casinos, AB 831, is now headed to the desk of Governor Gavin Newsom after receiving its final, unanimous approval from the State Assembly. The Assembly voted 63-0 to concur with the Senate’s recent amendments, a move that clears the bill’s final legislative hurdle and sets up a high-stakes decision for the governor.
The Final Legislative Step
The Assembly’s concurrence vote was the final step in a complex and often contentious legislative journey. The bill, which was transformed from a technical measure into a sweeping ban via a “gut-and-amend” process, passed the State Senate with a 36-0 vote earlier in the week.
Because of the significant amendments made in the Senate, the bill had to return to the Assembly for a final sign-off. With the Assembly’s unanimous approval, the focus now shifts entirely to Governor Newsom, who has until October 12 to either sign the bill into law, veto it, or allow it to become law without his signature.
If it becomes law, the ban is expected to go into effect on January 1, 2026.
Banning a Business Model
If signed into law, AB 831 would outlaw online sweepstakes casinos that use a “dual-currency” model to offer games that simulate real-money gambling, including casino-style games and sports betting.
The legislation would make it a misdemeanor to operate or promote these sites, with penalties that include up to a year in jail and fines of up to $25,000. Crucially, the bill also extends liability to third-party entities that “knowingly and intentionally” support these operations, a provision aimed at payment processors, game suppliers, and media affiliates.
A Deeply Divided Tribal Community
The bill has created a significant rift within California’s tribal community. It is strongly backed by the California Nations Indian Gaming Association (CNIGA) and many of the state’s most powerful and wealthy tribes, who argue it is necessary to protect their exclusive right to offer casino-style gaming.
However, a vocal coalition of four smaller, more rural tribes has fiercely opposed the measure. They argue that the bill is a threat to their economic sovereignty and would eliminate a vital pathway to revenue for tribes without large, established brick-and-mortar casinos.
These opposing tribes, along with the Social Gaming Leadership Alliance (SGLA), have urged Governor Newsom to veto the bill, warning it could “worsen economic disparities among tribal nations, stifle digital innovation, and drain the state’s economy of a billion dollars.”
The National Context
If AB 831 becomes law, California will become the fifth state to legislatively ban online sweepstakes casinos, joining a growing list that includes New Jersey and Montana.
The move is part of a broader, nationwide crackdown on the industry, which has seen a wave of enforcement actions, cease-and-desist letters, and legislative challenges in states across the country.
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