- Critics call California AB 831’s last-minute amendment a ‘backroom ban’ as the tribal-backed bill is changed to target casino-style digital games.
SACRAMENTO, Calif. – California lawmakers have launched a dramatic new front in the nationwide crackdown on online sweepstakes casinos. Assembly Bill 831, once a routine tribal gaming measure, has now transformed into legislation aimed squarely at outlawing dual-currency digital games that mimic gambling.
The revamped bill, reintroduced by Assembly member Avelino Valencia and backed by the California Nations Indian Gaming Association (CNIGA), proposes to amend both the state’s Business and Professions Code and Penal Code to define online sweepstakes as a deceptive and unlawful form of gaming. The California sports betting legislation would impose harsh penalties on operators and any person or business (such as financial processors, tech providers, or celebrity affiliates) that facilitates these games.
A Swift and Surprising Pivot
Initially, AB 831 was a minor procedural bill intended to give lawmakers more time to review tribal-state compacts. It passed the Assembly in May and was shelved by the Senate earlier this month, until it reemerged just before a deadline.
This “gut and amend” move drew sharp criticism from the Social and Promotional Games Association (SPGA), which called the process “a backroom ban” lacking transparency, debate, or economic analysis.
“This isn’t how sound policy gets made,” an SPGA spokesperson said. “A last-minute effort to outlaw legal digital games sends a chilling message to entrepreneurs, innovators, and investors across the state.”
What the Bill Bans
Under the new language, the legal sports betting bill would outlaw online or mobile sweepstakes games that:
- Use dual-currency systems (e.g., “sweep coins” and “gold coins”)
- Offer cash or cash-equivalent prizes
- Simulate casino or sports betting gameplay, including slots, poker, blackjack, bingo, or virtual sportsbooks
- Allow players to participate using real or indirect consideration (e.g., through bonus tokens, purchases, or promotions)
The bill specifically calls out sweepstakes 20 times in the text, underscoring its laser focus on this growing gray-market segment of the online casino gambling ecosystem.
Notably, the measure would not impact traditional retail sweepstakes that do not offer cash prizes… so grocery store promotions, Starbucks giveaways, or hotel loyalty raffles would remain legal.
Tribal Backing Raises Eyebrows
The bill is sponsored by the San Manuel Band of Mission Indians, which owns Yaamava’ Resort and Casino in San Bernardino County. But critics quickly noted that the resort itself promotes several sweepstakes, including one offering thousands in casino credits. If passed, this reward could run afoul of the proposed legislation.
It’s a point of contention for opponents who see the move as tribal gaming operators trying to protect their brick-and-mortar interests by shutting down potential online competitors.
Other major casino brands, such as MGM and Hard Rock, also maintain similar social casinos that use promotional sweepstakes models, potentially putting them in the crosshairs of legislation like AB 831.
California’s move follows legislative action across the country. In recent months, many states with legal sports betting have passed or considered similar bans, though Louisiana Governor Jeff Landry vetoed his state’s version. Meanwhile, regulators in multiple jurisdictions have issued cease-and-desist orders against sweepstakes operators.
The bill must now move through committee review and floor votes before potentially landing on Governor Gavin Newsom’s desk.
