A bill banning sweepstakes casino operators in California gained traction on Tuesday. Lawmakers advanced AB 831, which bans online sweepstakes casinos, past the Senate Governmental Organization committee.
“We cannot look the other way while these platforms exploit legal grey areas,” Assemblymember Avelino Valencia said in a statement. “These operations undermine the voter-approved framework that affirms Tribal governments’ sovereign right to conduct gaming in California. AB 831 strengthens that framework and ensures gaming in California remains fair and accountable.”
AB 831 Makes Casino-Style Games Unlawful
According to the Legislative Counsel’s Digest, California’s existing law “prohibits specified unfair acts or practices undertaken or committed by any person in the operation of any contest or sweepstakes.”
This includes “using or offering for use any method intended to be used by a person interacting with an electronic video monitor to simulate gambling or play gambling-themed games in a business establishment that directly or indirectly implements the predetermination of sweepstakes cash, cash-equivalent prizes, or other prizes of value.”
AB 831 would specify that “using or offering for use any method, including an internet website or an online application, in the manner described above is prohibited, and would make conforming changes.”
The bill would revise the definition of “gambling-themed game” to include examples, such as “lottery games, bingo, sports wagering, or any game that mimics or simulates similar games, as specified.”
Sweepstakes Promotions Would Be Outlawed
In addition, the measure would make “an unfair practice using or offering games of these types that use a system of payment” that allows the person “playing the simulated gambling program to become eligible for a prize or award, cash or cash equivalents, or a chance to win a prize or award, or cash or cash equivalents, in a business establishment, on the internet, or using an online application” unlawful.
This means sweepstakes promotions by companies like Marriott, Microsoft, and Starbucks would be banned in the Golden State. All types of promotions, rewards apps, and marketing campaigns would be put at legal risk.
The Social Gaming Leadership Alliance (SGLA) and the Social and Promotional Games Association (SPGA), two organizations representing sweepstakes operators, are urging lawmakers to reject the proposed California legislation. The SPGA noted that the San Manuel Band of Mission Indians operates an online social casino.
The California legislative session runs until Sept. 12, but bills can carry over to the 2026 session. The next hearing is scheduled for July 15 in the Senate Public Safety Committee.