Senate amendments to AB 831, a bill that would outlaw online sweepstakes casinos for simulating real-money gambling, were unanimously approved by the California State Assembly on Friday. The Golden State is now in a position to join four other states that have banned them.
Without a floor discussion, the Assembly adopted the Senate's modifications by a vote of 63 to 0. After three committee reviews and a September 3 amendment that clarified protections for certain operators of promotional contests, the Senate enacted the bill 36–0 on September 8, 2025.
Assemblymember Avelino Valencia wrote the bill, which is now on its way to Governor Gavin Newsom, who has 30 days to sign it or reject it. The bill will automatically become law on January 1, 2026, if he does nothing about it.
Violators are subject to misdemeanor charges under AB 831, which include fines of up to $25,000, a year in county jail, or both. According to the bill, third-party organizations such as media affiliates, payment processors, geolocation services, and content suppliers are only held accountable if they intentionally and knowingly aid unlawful sweepstakes activities.
The Count So Far
Four states currently prohibit online sweepstakes via legislation:
- Connecticut: SB 1235, effective October 1, 2025
- Montana: SB 555, effective October 1, 2025
- Nevada: SB 256, effective June 6, 2025
- New Jersey: AB 5447, effective August 14, 2025
Earlier this year, attempts to pass legislation in Maryland and Louisiana to implement comparable prohibitions were unsuccessful. In Louisiana, SB 181 passed both chambers but was vetoed by Governor Jeff Landry. Before the session ended, the bill in Maryland died in committee.
On June 12, 2025, S5935/A6745 was passed in New York, and on June 18, it was delivered to Governor Kathy Hochul, initiating a 10-day executive action window. Hochul's inactivity, however, resulted in a pocket veto because the legislature adjourned before the window closed on June 20.
Online sweepstakes are prohibited in the following five states through regulatory enforcement:
- Delaware: On April 7, 2025, the Delaware Division of Gaming Enforcement issued a cease-and-desist order to VGW Luckyland, effectively prohibiting all online sweepstakes casinos
- Idaho: Regulatory ban prohibits prize redemptions
- Michigan: Cease-and-desist orders enforced 2023-2025
- New York: Attorney general enforcement (cease-and-desists to 26 operators in June)
- Washington: Longstanding regulatory ban on sweepstakes contests of chance
The Disputation
Free-to-play competitions run by online sweepstakes casinos are marketed as social in nature. Operators compare their platforms to retail promotions like giveaways or discount codes because there is no purchase necessary to win.
However, some argue that these sites amount to uncontrolled internet gambling because they use two virtual currencies. "Sweeps coins," which can be bought and used to play casino-style games like slots and blackjack, are the most contentious.
The distinction between gambling and entertainment is blurred by the fact that many platforms provide sweepstakes coins to be exchanged for monetary rewards.
The blowback
The Social Gaming Leadership Alliance (SGLA) denounced AB 831 as soon as it was passed. In a statement, executive director Jeff Duncan cautioned that the law may reduce digital innovation, exacerbate economic inequality among tribal nations, and deprive the state's economy of $1 billion.
In order to support online social gaming as a means of promoting tribal economic development, Duncan pushed Governor Newsom to veto the bill.
In opposition, four tribes in Northern California that operate little or no gaming joined forces with SGLA:
- Kletsel Dehe Wintun Nation
- Sherwood Valley Rancheria of Pomo Indians
- Mechoopda Indian Tribe of Chico Rancheria
- Big Lagoon Rancheria
Nonetheless, AB 831 is nearly universally supported in California's Indian Country. This comprises the 13 tribes that are members of the Tribal Alliance of Sovereign Indian Nations.
The bill, if it becomes law, will represent a significant change in California's stance on online gaming and may influence the national dialogue on digital sweepstakes platforms, tribal sovereignty, and the future of regulated entertainment.