California lawmakers just delivered a stunning unanimous vote that could shut down online sweepstakes casinos across the state. Assembly Bill 831 sailed through both chambers without a single “no” vote, leaving the fate of these popular gaming sites in Governor Gavin Newsom’s hands. What does this mean for players and the industry? Details ahead spark questions about the future of online gaming in the Golden State.
Lawmakers Unite to Pass Sweeping Ban
The California State Assembly voted 63-0 on Friday to approve Senate amendments to AB 831, banning online sweepstakes casinos that use dual-currency systems. This came after the Senate passed it 36-0 earlier in the week. No debate happened on the floor, showing strong agreement among lawmakers.
This bill targets sweepstakes models that mimic real-money gambling, with fines up to $25,000 per violation. Sponsored by Assemblyperson Avelino Valencia, it aims to protect consumers and support tribal gaming interests. The vote wrapped up on the last day of the legislative session, pushing the bill straight to Governor Gavin Newsom.
Newsom has 30 days to sign, veto, or let it become law without action. If signed, the ban could take effect by early 2026, reshaping how Californians access online games.
Industry groups reacted fast. The Social Gaming Leadership Alliance called the vote disappointing, arguing it ignores player voices and could hurt a growing market.
Why the Push for a Ban Now?
Sweepstakes casinos have boomed in California, where traditional online gambling remains illegal. These sites let users buy virtual currency and enter sweeps for prizes, often seen as a loophole around gambling laws.
Tribal groups, key players in the state’s gaming scene, back the bill. They say sweepstakes operators cut into their revenue and operate without proper oversight. A report from the California Nations Indian Gaming Association highlights how these sites generated over $500 million in revenue last year, based on industry estimates from 2024.
Lawmakers point to consumer risks. Some players report addiction issues and unfair practices. Valencia noted during committee hearings that the bill closes gaps in current laws.
One key concern is the lack of regulation. Unlike licensed casinos, sweepstakes sites don’t face the same taxes or player protections.
The bill’s path was smooth. It started as a different measure but got amended to focus on sweeps. No opposing votes since the changes show broad support.
Impact on Players and the Industry
Millions of Californians use sweepstakes sites for fun and potential wins. A ban could force them to stop, pushing some to offshore options or tribal casinos.
Operators face big changes. Companies like those behind popular sweeps apps might pull out of California, a huge market. The Social Gaming Leadership Alliance warns of job losses and less innovation.
Here’s what the bill specifically prohibits:
- Offering dual-currency sweepstakes games online.
- Advertising these games to California residents.
- Operating without state approval, with hefty fines.
Experts predict ripple effects. Neighboring states like Oregon watch closely, as similar bans could spread. A 2025 study by Gambling.com Group found sweepstakes make up 20% of U.S. online gaming traffic, with California leading.
Players worry about account balances. Some X posts ask if funds need withdrawal by a deadline, but the bill doesn’t specify immediate shutdowns.
For tribes, this could boost business. California’s 80-plus tribal casinos brought in $9 billion in 2023, per state reports. Protecting that is a big driver.
Broader Questions for Online Gaming
This move fits into California’s strict gambling rules. Voters rejected sports betting expansions in 2022, showing caution. AB 831 continues that trend by cracking down on unregulated options.
Critics say it overlooks benefits. Sweepstakes provide free play and entertainment without real bets. A 2024 survey by the American Gaming Association showed 15% of adults tried sweeps last year, many for low-stakes fun.
Supporters argue it’s about fairness. Unregulated sites avoid taxes that fund state programs. California could gain millions in revenue if gaming expands legally.
The bill doesn’t touch daily fantasy sports directly, but some fear wider impacts. Lawmakers amended it to focus on casino-style sweeps.
As Newsom reviews it, his past support for tribal rights suggests he might sign. He vetoed unrelated bills before, but this aligns with his consumer protection stance.
What happens if vetoed? The industry breathes easy, but tribes might push harder. Either way, this highlights tensions between innovation and regulation in gaming.
