California Senate Approves Sweepstakes Ban

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: September 20, 2025

The Golden State is one step closer to banning sweepstakes casinos. Following some notable amendments to its text, Assembly Bill 831 was unanimously approved by the California Senate and the State Assembly. It’s now on Governor Gavin Newsom’s desk, who has 30 days to either sign or veto it.

Assembly Bill 831

California’s AB831 sweepstakes ban bill underwent three rounds of amendments to arrive at its present form, which was fully approved. We’ve listed and summarized the key changes below:

• The latest version of the bill explicitly exempts “limited and occasional” sweepstakes promotions conducted by for-profit commercial entities as marketing or advertising tools incidental to bona fide sales.
• The bill doesn’t affect the California State Lottery or lawful gambling under the Gambling Control Act. The language was simplified by replacing “gambling-themed games” with “gambling,” covering lottery, bingo, sports betting, and similar games.
• A “knowledge and intent” requirement was included, stating the penalties only apply to people or entities who “knowingly and intentionally” engage in, promote, or facilitate online sweepstakes games using a dual-currency system.
• Language that could criminalize individual players was removed from the bill. It now focuses solely on operators and knowingly complicit service providers and excludes consumers from penalties to address bipartisan concerns.

If AB831 gets signed into law, California will join several other states that have already banned sweepstakes casinos, including New York, Nevada, New Jersey, and more. For a while now, we’ve been observing legislators from all across the country gearing up to deal with these largely unregulated operators.

Opinions on the California Sweepstakes Ban Bill

Major California tribes and the California Nations Indian Gaming Association support the bill to ban sweepstakes casinos in the state. Some smaller tribes, social gaming-related tribes, and cardroom advocacy groups were worried about negative impacts on social gaming, promotional activities, and cardroom business interests. However, the changes made to AB831 have already addressed most of these concerns.

What’s Next?

The bill has passed unanimously through the California State Assembly (63-0) and Senate (36-0). Now, Governor Gavin Newsom has until October 12th to either sign it into law or veto it. Once signed, the law would be enforceable immediately, allowing regulators and the Attorney General to pursue violations seriously.

Penalties for illegal sweepstakes operations within California will include fines and potential jail time. The Social Gaming Leadership Alliance has expressed disappointment and is asking the governor to veto the bill to support tribal nations and digital gaming innovation in the state. We’ll keep you posted on future updates.