5BTC or 111% + 111 Free Spins!
New players only. Exclusive 111% Welcome Bonus + 111 Free Spins
California is pushing forward with efforts to tighten gambling laws, this time taking direct aim at online sweepstakes casinos. Assembly Bill 831 is designed to shut down operators that use dual currency models to sidestep state gaming rules. While the bill passed its latest Senate committee hearing, lawmakers still have questions about how it has been drafted and who exactly it targets.
Good to know
The bill, introduced by Assemblymember Avelino Valencia, aims to close a legal loophole that sweepstakes casinos have been exploiting. These platforms operate using two types of virtual currency and often let players cash out winnings, creating a gray area that, according to Valencia, “circumvent[s] the will of the voters and sidestep[s] the state’s gaming framework.”
Valencia clarified during the hearing that AB 831 does not target players, but rather operators, celebrity endorsers, suppliers, and payment processors. Fines could reach $25,000, and violations may carry up to a year in jail. Some confusion over whether players would be penalized led lawmakers to request clearer language in future amendments.
Senator Sabrina Cervantes voiced support but flagged concerns: “I do have concerns about the unintended consequences and just making sure there is some clarifying language as it relates to the criminalization or the misdemeanor penalties here for the individuals.”
Several senators shared the view that while they support the general intent of the bill—especially its alignment with tribal gaming compacts—they were uncomfortable with how fast the measure was moving. The current version of the bill was shared with the committee just days before the vote.
Tribal leaders and state tribes lined up in support of the legislation. Isaiah Vivanco, chairman of the Soboba Band of Luiseño Indians and treasurer of the California Nations Indian Gaming Association, warned that allowing unregulated sweepstakes casinos could disrupt the entire legal gambling structure in the state. Vivanco said:
“Allowing online sweepstakes casinos to continue operating in the state will destabilize the entire legal gaming ecosystem, leading to economic harm across the state.”
Vivanco and others also stressed that tribal-run casinos contribute to state and community programs, while illegal platforms do not.
The bill initially included language that concerned card room operators. After Valencia promised updates to remove them from the scope of the bill, card room representatives began showing support.
On the industry side, AB 831 got backing from the Sports Betting Alliance, which includes FanDuel, DraftKings, BetMGM, Fanatics Sportsbook, and bet365, as well as a faith-based anti-gambling group.
Still, not everyone is on board. The Social Gaming Leadership Alliance (SGLA), VGW, Play Studios, and other sweepstakes proponents voiced opposition. Attorney Bill Gantz, representing the SGLA, said, “We urge that the legislature take time to learn about this industry and find out what they’re authorizing and banning by adopting something like AB 831.”
Gantz argued that sweepstakes casinos are not gambling and have been operating in California without controversy since 2012. He added that nearly 20,000 Californians support them and there has been no consumer backlash or intervention from regulators.
The bill now moves on to the Public Safety Committee, with further tweaks likely ahead before it gets a shot at the Senate floor.