The California Senate has delivered a unanimous vote in favor of Assembly Bill 831, legislation that seeks to outlaw online sweepstakes casinos and sportsbooks in the state. The bill, passed 36-0 on September 8, now returns to the Assembly for approval of the Senate’s amendments before it can be sent to Governor Gavin Newsom for final consideration.

AB 831, authored by Assemblymember Avelino Valencia, represents a sweeping crackdown on sweepstakes-style gambling platforms that mimic casino or sports betting operations. The measure, which has received no opposition votes at any stage, reflects mounting pressure from tribal gaming groups and lawmakers to close what they view as a regulatory loophole undermining California’s gaming framework.

What the Bill Would Do

At its core, AB 831 criminalizes the operation of dual-currency, prize-awarding sweepstakes casinos, and it extends liability to those who knowingly support such businesses. This includes payment processors, affiliate marketers, software providers, and other third-party partners. Violations could result in fines and even jail time.

Lawmakers adjusted the language several times to avoid unintended consequences. Amendments clarified that consumers themselves would not face penalties, and that legitimate sweepstakes promotions—such as McDonald’s Monopoly game or Starbucks Rewards—would remain unaffected. Similarly, protections were added to ensure the state lottery and licensed cardrooms were not caught in the ban’s scope.

Valencia defended the legislation, stating: “Many of these ‘sweepstakes’ operators are based offshore and function without proper oversight, avoiding requirements like consumer protections, responsible gaming safeguards, background checks, and tax compliance.”

Tribal Nations Split on the Measure

Native American tribes, long central to California’s gaming industry, are divided on the issue. Large and influential groups, such as the Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA), strongly support the legislation, arguing that unregulated sweepstakes sites threaten the integrity of tribal gaming.

“The state’s voters have consistently shown their trust in Native American tribes to operate gaming facilities responsibly and ethically,” the Yuhaaviatam of San Manuel Nation said in a statement cited by Next.io. “Allowing unregulated and predatory sweepstakes operators to bypass these regulations undermines that trust and integrity of California’s gaming policies.”

However, four smaller tribes—the Kletsel Dehe Wintun Nation of Cortina Rancheria, Sherwood Valley Band of Pomo Indians, Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria—have come out against AB 831. Leaders from these communities argue the bill curtails much-needed economic opportunities.

“AB831 is a flawed and rushed bill that lacks broad tribal consensus,” said Jeff Duncan, executive director of the Social Gaming Leadership Alliance. “What California lawmakers should focus on instead is creating proper regulation that supports online social games, creates new revenue sources for the state and protects economic opportunities for all tribes.”

On the day of the Senate vote, members of these tribes staged a protest at the State Capitol in Sacramento to highlight their concerns.

Industry Fallout Already Underway

Even before AB 831 becomes law, its effects are being felt across the gaming industry. In late August, Los Angeles city attorney officials filed a civil suit against Stake.us, accusing it of running illegal gambling operations. Several prominent suppliers—including Evolution, Hacksaw Gaming, and Pragmatic Play—were named in the case.

In response, suppliers have begun distancing themselves from California’s sweepstakes market. Pragmatic Play went further, announcing it would withdraw from the U.S. sweepstakes vertical altogether. Playtech, though not directly implicated in the lawsuit, confirmed it was no longer supplying sweeps operators in California.

A Playtech spokesperson explained, “We continually assess our position across jurisdictions taking into account a range of factors. We are not supplying social gaming operators on sweepstakes in California at this time.”

Next Steps in the Legislative Process

AB 831 must now clear two remaining hurdles in the Assembly: approval by the Governmental Organization Committee and a full floor vote, where at least 41 of the 80 members must support it. The legislative deadline for passage is September 12, after which Governor Newsom will have until October 12 to either sign or veto the bill.

Victor Rocha, a prominent tribal leader and chairman of the Indian Gaming Association conference, has expressed confidence that the measure will advance. He recently posted on X that there are “more than enough” votes in the Assembly to pass AB 831 and predicted Newsom would sign it.

As lawmakers race toward the deadline, the fight over sweepstakes casinos underscores a broader debate about how California regulates online gambling. Supporters see the bill as necessary to protect consumers and preserve the tribal gaming compact, while critics argue the state is shutting down potential revenue streams without offering smaller tribes and businesses a fair alternative.

For now, the Senate’s action marks a major step toward ending sweepstakes casinos in California, setting the stage for a decisive vote in the Assembly in the coming days.