Lawmakers held a second hearing in the California Senate Public Safety Committee on Tuesday, and unanimously advanced Assembly Bill 831, a measure that would outlaw sweepstakes casino operators in the Golden State.
California Assembly Bill 831 Advances To The Appropriations Committee
The bill’s sponsor, Assemblymember Avelino Valencia, said the measure helps close a loophole that gaming platforms like sweepstakes casinos and social casinos use to offer casino-style games via a dual-currency model.
“We cannot look the other way while these platforms exploit legal grey areas,” 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 now moves on to the Appropriations Committee. The bill took its first step last week in the Governmental Organization Committee, and sweepstakes industry organizations immediately responded.
ACLU, Industry Groups Joins Opposition Against Anti-Sweepstakes Bill
A coalition of organizations, including the American Civil Liberties Union (ACLU) and the Association of National Advertisers, whose members include Google, NBCUniversal, and other Fortune 500 companies, joined the Social and Promotional Games Association (SPGA) in opposing AB 831.
Other opponents of the bill include the American Transaction Processors Coalition, Californians United for a Responsible Budget, and the Social Gaming Leadership Alliance (SGLA).
The SGLA noted that more than 20,000 letters, calls, and texts from California residents were sent to lawmakers to urge opposition to the legislation. They also mentioned “broad language” that could “criminalize routine services provided by technology companies, financial institutions and media platforms.”
In addition, the SGLA cited “several red flags” of the bill:
- Impractical Monitoring Requirements
- Unfair Criminal Liability
- Lack of Clear Standards
SPGA, Consumer Advocates Urge Lawmakers To Revisit The Proposal
Meanwhile, the SPGA pointed out that rewards apps, marketing campaigns, and sweepstakes promotions by companies such as Marriott, Microsoft, and Starbucks would be put at legal risk.
“Originally introduced through a ‘gut-and-amend’ process, the bill’s broad language has created uncertainty around the legality of common sweepstakes and promotional programs,” the SPGA stated in a news release.
“Consumer advocates and business leaders alike are urging lawmakers to revisit the proposal and clarify its intent to avoid unintended consequences for lawful marketing practices.”
The California legislative session runs until Sept. 12, but bills can carry over into the 2026 session.