California Senate Closer to Approving Sweepstakes Gambling Ban
California lawmakers are moving closer to banning sweepstakes casino-style gambling as the state Senate prepares to consider Assembly Bill 831 (AB 831). The proposal advanced out of the Senate Appropriations Committee last week with unanimous support in a 7-0 vote during a suspense file hearing. The decision pushes the measure to the Senate floor, where lawmakers must decide before the September 12 deadline whether to pass the bill and send it back to the Assembly for concurrence.
LISTEN TO THIS ARTICLE:AB 831, introduced by Assemblymember Avelino Valencia, would prohibit the operation of online sweepstakes casinos that rely on a dual currency model. The bill proposes penalties for operators that continue to run sweepstakes casinos in California.
Related: California Advances AB 831 to Ban Online Sweepstakes CasinosViolations would be classified as misdemeanors, carrying potential punishments of up to one year in jail and fines ranging from $1,000 to $25,000. The measure was amended earlier this summer to specifically address sweepstakes gambling, reflecting growing concerns among state officials and tribal gaming operators about unregulated online platforms.
Committee Chair Senator Anna Caballero clarified during the hearing that a committee vote does not guarantee support on the Senate floor. She explained that members often treat appropriations decisions as procedural, moving bills forward while reserving judgment until final consideration. The measure still faces a tight timeline, as the legislature must pass all bills by mid-September before the current session ends.
California is not the only jurisdiction confronting sweepstakes casinos. Several states, including New Jersey, have already moved to prohibit such operations this year. For California, however, the stakes are higher due to the state's large gambling market and the longstanding role of Native American tribes in operating casinos under state compacts.
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Tribes Not Aligned in Sweepstakes Battle
AB 831 has strong support from prominent tribal nations and gaming associations. The Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA) have co-sponsored the legislation.
These groups argue that sweepstakes casinos undermine the integrity of California's gaming framework by bypassing regulations and infringing on tribal exclusivity rights. They emphasize that voters in California have repeatedly affirmed their trust in tribes to oversee gaming responsibly, and unregulated operators pose risks to both consumers and the state's regulatory structure.
Not all tribal voices are in agreement. The Sherwood Valley Band of Pomo Indians has opposed the bill, raising concerns that eliminating online sweepstakes-style enterprises could worsen economic challenges for some tribal communities. In a letter to lawmakers, the tribe's secretary, Buffey Bourassa, argued that cutting off access to digital business opportunities could undermine self-sufficiency and conflict with California's broader commitments to equity and inclusion for tribal nations.
The debate highlights the competing interests among tribal entities, with larger and more established casino operators backing the prohibition while smaller tribes express concern about losing potential digital revenue streams. Lawmakers will need to weigh these perspectives alongside the broader regulatory concerns before casting their votes on the Senate floor.
The proposed legislation is already causing fallout. It was recently reported that Stake.US lost several suppliers for its California market, including Evolution and Pragmatic Play. The City of Los Angeles has also filed a lawsuit against Stake.US over its operations.
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