California sweepstakes dealt signifcant blow as bill passed
Summary
California’s legislature unanimously passed AB 831 on 12 September; the bill now awaits Governor Gavin Newsom’s decision by 12 October. If signed, AB 831 will criminalise sweepstakes operators and suppliers in the state, effectively banning the vertical in the nation’s largest market. The measure follows similar moves in several US states and has already prompted major suppliers to withdraw content or partnerships in California.
Key Points
- AB 831 passed unanimously in the California legislature on 12 September and now goes to Gov. Gavin Newsom, who has until 12 October to sign or veto.
- The bill would criminalise both sweepstakes operators and the companies supplying the vertical, marking a de facto ban in California if signed.
- California would join states such as Connecticut, Montana, Nevada and New Jersey in imposing similar restrictions on sweepstakes.
- Tribal positions are split: some larger tribal groups and CNIGA support the bill, while smaller tribal entities like KEDA oppose it, warning of lost economic opportunity for smaller nations.
- Industry bodies including the SLGA and SPGA warned of major economic impacts: the SLGA cited potential loss of about 1,200 jobs and around $1bn in state benefits; the market had projected $2.42bn in sales.
- Legal fights are ongoing: Stake.us faces a lawsuit from the Los Angeles City Attorney; several suppliers (Pragmatic Play, Evolution, Playtech) have scaled back or left the California sweeps market.
- AB 831 was originally intended to amend tribal-state compact rules but was substantially reworked by Assembly member Avelino Valencia into a ban on sweepstakes.
Context and relevance
This is a major development for the US digital sweepstakes sector because California is the largest potential market by population and projected sales. The bill’s passage signals continued regulatory momentum against sweepstakes nationally and increases legal and commercial pressure on operators, suppliers and tribal partners. Suppliers exiting or pausing services indicate the industry is already repositioning ahead of a possible signature.
Why should I read this?
Short version: if you work in igaming, payments, tribal commerce or digital promotions, this changes the playground. Big suppliers pulling content, potential job losses and a $2.4bn market at stake — news you don’t want to miss. We’ve read the detail so you can skip the noise and see what actually matters.
Author style
Punchy — this piece flags a high-impact, time-sensitive regulatory shift. Read closely if you need to plan operations, legal strategy or market entry/exit decisions.
Source
Source: https://igamingexpert.com/regions/north-america/california-sweepstakes-ban-final-signature/