Sweeps Executives Urge Newsom to Veto AB 831 as Deadline Nears in California

A coalition of sweepstakes casino industry executives has urged California Gov. Gavin Newsom to veto Assembly Bill 831 (AB 831), which bans dual-currency platforms, passed by the Legislature in September. The coalition warns that the measure would destroy a billion-dollar digital sector and criminalize legitimate business relationships.

In a letter sent on September 25 by the Social Gaming Leadership Alliance (SGLA), a roster of industry leaders described the proposal as “misguided” and “rushed.” They wrote, “We urgently request that you veto Assembly Bill 831.” They further argued that the bill “would destroy a thriving $1 billion California industry.”

The signatories include PlayStudios founder and CEO Andrew Pascal, ARB Interactive CEO Patrick Fechtmeyer, VGW CEO Laurence Escalante, YSI Director Paul Foster, SGLA Executive Director Jeff Duncan, and BTWO Director Steven Welsh.

The SGLA letter cites research that shows that AB 831 would eliminate:

• $732 million in annual marketing spend with California platforms like Meta and Google
• 1,200 high-paying technology jobs
• $70+ million in technology infrastructure and cloud services spending
• Millions in current and future tax contributions

The letter also outlined an alternative path: regulation and taxation. The executives claim that licensing sweepstakes platforms could yield $200–$300 million annually in tax revenue. At the same time, it would embed age verification, spending limits, and other consumer safeguards.

What AB 831 Would Do

AB 831, sponsored by Assemblymember Avelino Valencia, prohibits “knowingly and willfully” operating or supporting online platforms that use a dual-currency model. Violations would be classified as misdemeanors. They will be punishable by up to one year in county jail and fines of up to $25,000.

The bill also targets support companies, such as payment processors, geolocation firms, and affiliate marketers. A late Senate amendment ensured AB 831 would not apply to traditional promotional sweepstakes or place liability on players.

Lawmakers advanced the bill by unanimous votes in both chambers. The Senate advanced it with a 36–0 vote, and the Assembly followed with a 79–0 vote, before presenting it to Newsom on September 24.

Tribes Back the Bill

Supporters of AB 831, including the California Nations Indian Gaming Association (CNIGA) and the Tribal Alliance of Sovereign Indian Nations (TASIN), frame it as a measure that promotes consumer protection and tribal sovereignty.

TASIN said it “applauds the bipartisan, unanimous passage of Assembly Bill 831.” It added that the law “safeguards consumers and closes dangerous loopholes.”

Still, a small group of tribes has aligned with sweepstakes operators in opposing the bill. They claim AB 831 would restrict digital commerce opportunities that smaller and rural tribes could rely on to fund healthcare, housing, and education programs.

Operators & Suppliers Already Exiting California

While Newsom weighs his options, some sweepstakes operators and content suppliers have begun to exit the California market preemptively.

Carnival Citi became the first operator to stop accepting players from the state. Popular platform High 5 Casino followed, and so did Ruby Sweeps.

Meanwhile, Pragmatic Play, arguably the most popular content provider, exited California even before the bill’s passage. The company later decided to cease operations in the US entirely. Another industry giant, Playtech, also stopped offering its games in the state, describing its involvement in the sector as “immaterial.”

Newsom’s Political Calculus

Newsom has until October 12 to sign, veto, or take no action on AB 831. He has not signaled whether he intends to sign or veto it. If he takes no action, then the bill will automatically become law and take effect on January 1, 2026.

Victor Rocha, conference chairman of the Indian Gaming Association, recently said in a webinar that Newsom might not sign AB 831 due to presidential ambitions. Speaking on the New Normal webinar, Rocha said, “He wants to be president, so he doesn’t want to [anger] the 18-35 demographic.”

With tribes strongly supporting the measure, executives warning of lost jobs and innovation, and operators already pulling out of California, the governor’s choice is no longer about whether AB 831 will become law — but about how he frames his role in its passage.