California Sweepstakes Casino Ban Heads to Governor's Desk
California is on the verge of joining several other large-market states in prohibiting online sweepstakes casinos after the State Assembly voted to concur with Senate amendments to Assembly Bill 831 (AB 831). The legislation, authored by Assemblymember Avelino Valencia, aims to prohibit online casino sweepstakes operators from offering their services in the state.
LISTEN TO THIS ARTICLE:The Assembly approved the measure on Friday with a 63-0 vote, following a unanimous 36-0 Senate vote earlier in the week. The bill now awaits Gov. Gavin Newsom's action, with the governor having 30 days to either sign or veto the measure. If no action is taken within that timeframe, the bill will automatically become law.
Related: California Senate Closer to Approving Sweepstakes Gambling BanThe passage of AB 831 occurred without floor debate in either chamber, but faced several changes along the way. The bill had to navigate three separate Senate committees before reaching the full chamber for a vote.
It was also returned to a second reading in the Senate last week when amendments were added to protect operators of social sweepstakes games, ensuring the legislation's scope targeted only online casino-style sweepstakes. Following these revisions, the bill passed unanimously in the Senate on Monday and returned to the Assembly for final concurrence on Friday.
Reactions to the vote highlighted divisions among stakeholders. The Social Leadership and Gaming Alliance (SLGA) expressed disappointment almost immediately after the bill passed. This group has argued against the ban, aligning itself with a handful of Northern California tribes that operate limited or no gaming facilities. Among them, the Kletsel Dehe Wintun Nation voiced its opposition at a committee hearing earlier in the week, emphasizing its disagreement with the direction of the legislation.
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California Tribes Overwhelmingly Support Ban
Support for the measure, however, was far broader among California's gaming tribes. The Tribal Alliance of Sovereign Indian Nations (TASIN), which represents 13 tribes including the Pechanga Band of Mission Indians and the Yuhaaviatam of San Manuel Nation, applauded the approval of AB 831. Most tribes in the state backed the effort, citing the need to regulate and curb unlicensed online casino sweepstakes activity that could compete with tribal gaming enterprises and undermine regulated gaming frameworks.
The legislative calendar placed additional urgency on the process. On Thursday, the Governmental Organization Committee advanced the bill with a 20-0 vote, sending it to the full Assembly for a floor vote on the final day of the legislative session. This timeline ensured that the measure could be delivered to Gov. Newsom's desk before adjournment, setting up the next step in determining whether the bill becomes law.
California's move follows actions taken by other major states. With this legislation, California becomes the fourth large-market jurisdiction to pass a ban on online sweepstakes casinos, joining New York, Nevada, and New Jersey.
While New Jersey Gov. Phil Murphy has already signed his state's version into law, New York Gov. Kathy Hochul has not yet acted on the corresponding measure passed there. The broader trend has gained momentum this year, with Connecticut and Montana also enacting bans.
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