California, September 27, 2025
News Summary
California has passed Assembly Bill 831, targeting online sweepstakes casinos that imitate traditional games. With unanimous support, the bill aims to protect the state’s casino framework and impose penalties on violators. Advocacy from tribal governments supports the bill, while opposition arises from smaller tribes and operators concerned about revenue impacts. If signed by the governor, the law will take effect on January 1, 2026, expanding the regulation of online gaming in the state.
California has taken a significant step in regulating online gaming with the recent passage of Assembly Bill 831, which aims to outlaw online sweepstakes casinos that emulate traditional casino games. The bill has garnered unanimous support from both chambers of the state legislature, passing the Assembly with a vote of 79-0 and the Senate without any opposition.
Assemblymember Avelino Valencia, who authored the bill, stated that if it receives the approval of Governor Gavin Newsom by October 12, it will go into effect on January 1, 2026. The legislation extends liability to not just the operators of these sweepstakes casinos, but also to payment processors, affiliates, and other companies that support the sweepstakes industry. Violators of the new law would face misdemeanor charges, fines of up to $25,000, and potential imprisonment of up to one year in county jail.
Advocates of AB 831 include tribal governments and the California Nations Indian Gaming Association (CNIGA), who argue that the bill upholds the state’s system that allows tribes exclusive rights to casino-style gaming. They assert that illegal online gaming operations undermine both consumer safety and the nearly $25 billion generated for California communities, which significantly contributes to job creation in the state.
Support from the Yuhaaviatam of San Manuel Nation highlights that tribes have been running their gaming operations with integrity for over two decades, contributing to economic stability and prosperity within their communities.
However, opposition to the bill has emerged from sweepstakes operators and smaller tribal entities, such as the Kletsel Dehe Wintun Nation, Sherwood Valley Band of Pomo Indians, and Mechoopoda Indian Tribe of Chico Rancheria. These groups argue that the legislation unfairly benefits larger tribal casinos at the expense of smaller tribes, limiting their potential revenue streams.
The Social Gaming Leadership Alliance (SGLA) also voiced criticism, warning that the bill could dismantle a billion-dollar industry while impeding consumer choice and stifling technological progress in the gaming sector. The group has urged Governor Newsom to veto the legislation.
AB 831 aims to close loopholes that have allowed sweepstakes operators to label their platforms as promotional games rather than gambling activities. Should the law be enacted, consumers will be barred from accessing popular sweepstakes casino platforms that are known for awarding redeemable prizes.
It’s important to note that the legislation does not permit sports betting or online casinos. Instead, it reinforces existing prohibitions against unregulated gambling while granting exemptions to licensed tribal casinos and legitimate marketing sweepstakes.
The context surrounding this decision includes previous legislation, such as Assembly Bill 549, signed by Newsom in September 2024, which empowers tribes to take legal action against private cardrooms accused of violating exclusivity agreements. Critics have raised concerns that banning sweepstakes casinos will drive Californians to seek out unregulated gambling options on offshore websites, which could pose additional risks to consumers.
As of now, Governor Newsom has not made any public statements regarding his position on AB 831. Before it can become law, the Assembly must agree to the Senate amendments.
In summary, the proposed legislation has broadened the scope of regulation in California’s gaming landscape and continues to stir debate among various stakeholders.
FAQ
What is Assembly Bill 831?
Assembly Bill 831 targets online sweepstakes casinos that mimic casino games and has received unanimous approval from both chambers of California’s Legislature.
Who authored Assembly Bill 831?
The bill was authored by Assemblymember Avelino Valencia (D-Anaheim).
What happens if the bill is signed by Governor Newsom?
If signed by Governor Gavin Newsom by October 12, the bill will take effect on January 1, 2026.
What penalties does the bill impose on violators?
The measure extends liability to operators, payment processors, affiliates, and companies that support the sweepstakes industry, making violations subject to misdemeanor charges, fines of up to $25,000, and up to one year in county jail.
What are the supporters arguing in favor of AB 831?
Supporters of the bill argue it protects the state’s voter-approved framework that grants tribes exclusive rights to casino-style gaming.
What criticism is aimed at AB 831?
Opposition comes from sweepstakes operators and smaller tribes, arguing the bill favors larger tribal casinos and limits revenue streams for smaller tribes.
What is the potential impact of the bill?
If enacted, AB 831 would prevent consumers from accessing popular sweepstakes casino platforms that award redeemable prizes.
Key Features of AB 831
| Feature | Description |
|---|---|
| Significant Target | Online sweepstakes casinos that mimic casino games. |
| Support | Unanimous approval from California Legislature. |
| Penalties | Violations subject to misdemeanor charges, fines up to $25,000, and potential jail time. |
| Supporters | Includes tribal governments and the California Nations Indian Gaming Association. |
| Opposition | Sweepstakes operators and smaller tribes voicing concerns over revenue streams. |
| Effective Date | January 1, 2026, if signed by the governor. |
Deeper Dive: News & Info About This Topic
- Tribal Business News
- Sports Handle
- Edhat
- Legal Sports Report
- Google Search: California online sweepstakes casinos
Author: Anaheim Staff Writer
Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
