On July 15, 2025, the committee voted 6‐0 to move the bill forward. AB 831, sponsored by Assemblymember Avelino Valencia, now heads to the Senate Appropriations Committee, where further changes could be made before a full Senate vote.
What’s in AB 831?
AB 831 amends California’s Business and Professions Code and adds a new section to the Penal Code to close a gap that allows sweepstakes casinos to operate under promotional rules.
Under current law, sites can sell packages of “Gold Coins” and include bonus “Sweep Coins” that can be redeemed for cash prizes. The bill would:
- Ban the operation of online sites offering dual‐currency sweepstakes games.
- Prohibit any company from using an online application or website to offer sweepstakes prizes by simulating gambling.
- Clarify that games not offering cash prizes or cash equivalents remain lawful promotional sweepstakes.
- Impose penalties of up to $25,000 in fines, starting at $1,000 for a first offense.
- Allow for up to one year in jail for operators who violate the ban.
Several amendments accepted by the committee would shield payment processors, media affiliates, geolocation services, and individual users from liability.
Assemblymember Valencia emphasized that the bill is aimed solely at punishing operators, often based offshore, rather than Californians playing the games.
Supporters, Opponents, and Next Steps
Support for AB 831 comes primarily from tribal gaming groups, who argue that unchecked sweepstakes casinos undercut voter‐approved tribal compacts and cost the state millions in lost gaming revenue.
Johnny Hernandez, vice chairman of the San Manuel Band of Mission Indians, described sweepstakes casinos as “unregulated, real‐money experiences” that put vulnerable players at risk.
Opposition has coalesced in an unusual alliance of the Social and Promotional Games Association (SPGA), the American Civil Liberties Union (ACLU), and the Association of National Advertisers.
They warn that the bill’s broad language could inadvertently ban legitimate promotional sweepstakes—like those run by soft drink companies—and restrict lawful marketing practices. In their view, the bill must clearly exempt typical no‐purchase‐necessary contests that do not award cash or cash equivalents.
AB 831 now awaits review in the Senate Appropriations Committee, with a hearing currently set for August 18, 2025. If the bill clears that hurdle, it will proceed to the full Senate for a final vote before returning to the Assembly.
Lawmakers have until September 12 to pass AB 831 during the 2025 regular session, after which it would go to Governor Gavin Newsom for signature or veto.
Next Steps to Watch:
- Senate Appropriations Committee hearing (Aug. 18, 2025)
- Possible amendments to narrow scope or adjust penalties
- Full Senate vote before Sept. 12, 2025
- Potential inclusion on 2026 ballot if referred
With other states like New York and Connecticut already banning sweepstakes casinos under similar laws, California’s action could mark a major shift in how promotional gambling games are regulated nationwide.
