California sweepstakes casino ban wins unanimous legislative vote, heads to Newsom
Summary
The California Assembly unanimously passed AB 831 (63-0) on the final day of the legislative session. The bill, authored by Assemblymember Avelino Valencia, would make it a misdemeanor to operate or knowingly support dual-currency sweepstakes sites that mimic casino or sports-betting products. The measure was amended in the Senate this summer to focus specifically on sweepstakes casinos and has backing from many tribal groups, though a handful of tribes oppose it. The bill now goes to Governor Gavin Newsom for signature or veto.
Key Points
- AB 831 passed the Assembly unanimously (63-0) and was advanced after amendments in the Senate to target sweepstakes casinos specifically.
- The law would criminalise operation or knowing support of dual-currency sweepstakes sites that replicate casino or sports-betting experiences.
- The California Nations Indian Gaming Association and many tribes supported the bill; four tribes publicly opposed it, citing rushed process and economic concerns.
- Amendments explicitly exclude state lottery games and traditional promotional sweepstakes to limit unintended consequences for mainstream marketers.
- This move follows a wider US trend: several states have pursued similar bans or regulatory crackdowns, and regulators have issued cease-and-desist letters in multiple jurisdictions.
- Market impact: Eilers & Krejcik Gaming revised 2025 US sweepstakes revenue down to $4bn (from $4.7bn) amid mounting regulatory pressure and forecasts a decline in 2026.
Content summary
The article reports on California’s legislative action to prohibit dual-currency sweepstakes casinos — platforms that use ‘gold coins’ and ‘sweeps coins’ to offer prize-based play resembling gambling. AB 831 was initially about a different tribal gaming matter but was amended in the Senate to ban sweepstakes casinos. The bill received strong legislative support and backing from many tribal organisations, though some tribes and industry groups criticised the process and warned about harming economic opportunities and legitimate sweepstakes promotions. The article situates California’s move within a national wave of scrutiny, noting other states’ laws, regulator letters, and downward revisions to sector revenue forecasts.
Context and relevance
Why this matters: the decision signals growing state-level intolerance for operators exploiting dual-currency models to skirt gambling laws. For tribal governments, operators, regulators, and affiliates, the bill could reshape market opportunities and enforcement risk in one of the largest US markets. The unanimous vote adds political momentum; Newsom’s choice will determine whether California joins the ranks of states imposing statutory bans or leaves enforcement to regulators.
Why should I read this?
Look — if you work in gaming, tribal affairs, compliance or payments, this is one to skim now and file for follow-up. It could change who can legally operate in California, affect revenue projections, and trigger broader enforcement across the US. Short version: it matters, and you’ll want to know if your business or clients are exposed.
Author’s take
Punchy summary: a unanimous vote is a big signal. Whether Newsom signs or vetoes, the policy debate has shifted and operators should expect tighter scrutiny and potential legal risk.