Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioCalifornia’s Legislature has passed Assembly Bill 831 (AB 831), a measure that bans dual-currency sweepstakes casinos, sending it to Governor Gavin Newsom‘s desk. The bill would make it a misdemeanor to “knowingly and willfully” operate or support the platforms.
The Assembly passed AB 831 with a 77-0-2 floor vote on September 12 after concurring with the Senate, which also passed it unanimously on September 8.
What AB 831 Does
AB 831 targets online sweepstakes casinos that use a dual-currency model. On September 3, the Senate amended the bill to clarify the language, ensuring that traditional sweepstakes are exempt from the ban.
The revised measure prohibits anyone from “knowingly and willfully” engaging in, promoting, or facilitating sweepstakes casinos that use dual-currency systems.
“This bill would prohibit online sweepstakes games that simulate real-money gambling, as defined, by utilizing a dual-currency system of payment that allows a person to play or participate with direct consideration or indirect consideration, and for which the person playing or participating may become eligible for a prize, award, cash, or cash equivalents…”
The bill also imposes criminal penalties, including fines and potential jail time, for violators.
Who Backed & Who Opposed it
AB 831 received strong support from over 50 Native American tribes. They argue the measure protects regulated gambling and closes a loophole exploited by sweepstakes casino operators. The author’s office framed AB 831 as a measure for consumer protection and market integrity.
There has also been pushback. Industry trade groups, such as the Social & Promotional Games Association (SPGA), argue that the language is too broad and that the bill was amended rapidly. SPGA also says AB 831 puts at risk lawful digital promotions and limits economic opportunities for smaller tribes.
SPGA received backing from several organizations. Those include the American Civil Liberties Union, American Transaction Processors Coalition, and the Association of National Advertisers.
Notably, not all tribes back the ban. In August, SPGA member VGW announced a landmark partnership with the Kletsel Dehe Wintun Nation of the Cortina Rancheria tribe. The tribe openly protested the bill. It claimed AB 831 would restrict digital commerce opportunities that smaller and rural tribes could rely on to fund healthcare, housing, and education programs.
Shortly after, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and the Big Lagoon Rancheria also joined the opposition to the ban bill. They stated similar reasons for their stance.
They argue the bill threatens tribal sovereignty by extending state criminal penalties into Indian Country.
Governor’s Desk: Uncertain Outcome
Gov. Newsom has not indicated whether he would sign or veto AB 831. He has until October 12 to act. If he does not, the bill automatically becomes law.
Observers say the governor may lean towards signing it. His past actions have favored tribal sovereignty and the tribes’ role in California’s gaming industry. In 2022, Newsom, along with state Democrats, opposed a proposal for commercial sports betting. At the same time, the party remained neutral on a separate tribes sports betting proposal.
In 2024, Newsom also signed legislation that gives tribes authority to sue cardrooms in their long-standing dispute.
Still, the governor’s record shows he weighs local tribal disputes, procedural fairness, and legal risks. While the support from major tribal organizations helps, the small opposition group could also play a role, so a signature is not automatic.
How AB 831 Fits Into Broader US Trend
If enacted, California will join a wave of states this year targeting sweepstakes casino operators.
Over the last several months, five states — New Jersey, New York, Montana, Nevada, and Connecticut — have enacted bans on the platforms. The governors in each state signed the measures into law.
If Newsom decides to veto AB 831, it won’t be unprecedented. In Louisiana, Gov. Jeff Landry vetoed a ban on sweeps, stating it was unnecessary. While Louisiana regulators took control and sought enforcement action, Landry’s actions demonstrate that executive decisions can halt legislative momentum.
What Happens Next
If Newsom signs AB 831 (or allows it to become law), sweepstakes casino operators would face immediate legal exposure in the state. Additionally, payment processors, platform providers, and affiliates may be exposed if they are found to have knowingly facilitated banned operations.
If the governor vetoes the bill, then enforcement actions and civil litigation by state and local authorities will likely continue to target the platforms. Even as the bill progressed through the Legislature, these efforts have resulted in some platforms and providers exiting the state.
Political context matters. The bill is as much about consumer protections as it is about tribal-state gaming policies. Major tribes view AB 831 as protecting their gambling exclusivity, while smaller tribes and the industry argue for a more tailored regulatory framework that preserves digital economic options.
