These platforms use a dual currency system, where players buy virtual gold coins but also receive “sweep coins” that can be cashed out for real prizes. The bill, introduced by Assemblymember Avelino Valencia (D-Anaheim) on June 25, 2025, is backed by major Tribal groups.
Supporters say it will protect tribal sovereignty and shut down unregulated gaming that skirts existing laws. Critics warn it could sweep in legitimate promotions run by big brands.
What the Bill Would Do
Under AB 831, any business offering sweepstakes-style gambling would face steep penalties. The proposal would:
- Ban platforms using dual currency to mimic casino games.
- Impose fines up to $25,000 per violation and possible jail time.
- Target not only operators but also payment processors, media affiliates, geolocation services, and celebrity endorsers.
- Include a prohibition on simulated casino games such as slots, video poker, table games, bingo, and sports wagering under a sweepstakes model.
Supporters argue these measures close loopholes that let operators dodge California’s strict gaming rules. They say sweepstakes casinos exploit consumers and threaten the voter-approved Tribal-State gaming compacts.
Tribal Support and Industry Pushback
Tribal nations are leading the effort, framing the bill as a defense of constitutional gaming rights. The Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA) co-sponsored the legislation.
Leaders like CNIGA Chair James Siva and Tribal Council Chairwoman Lynn Valbuena say the bill is vital to preserve the integrity of California’s gaming framework and protect billions in annual tribal revenue.
However, the Social and Promotional Games Association (SPGA) calls AB 831 a “backroom ban” passed with little public debate. They caution that the bill’s broad language could unintentionally prohibit legitimate promotional sweepstakes from companies like Marriott, Starbucks, and Microsoft.
The SPGA also warns that targeting celebrities—such as Drake, Paris Hilton, and Ryan Seacrest—who have promoted these platforms could have chilling effects on social media marketing and influencer partnerships.
While the bill awaits a hearing in the California Senate, its passage would join a growing trend: since 2023, at least 16 states have taken action against sweepstakes casinos, with several outright bans in New York, Connecticut, Montana, Nevada, Mississippi, and New Jersey. California’s move could mark a turning point and spur similar legislation in other large states.
