California Senate Delivers Decisive Blow to Online Sweepstakes Casinos with Unanimous Vote
SACRAMENTO, CA – September 9, 2025 – In a stunning display of bipartisan agreement, the California Senate today passed Assembly Bill 831 (AB 831) with a unanimous 31-0 vote, effectively signaling a crackdown on the rapidly growing, and often unregulated, online sweepstakes casino industry. This breaking news development has sent ripples through the $3.1 billion (2022 revenue) market, projected to exceed $8 billion by 2024, and is poised to reshape the state’s gaming landscape. This is a major win for SEO and Google News visibility as the story develops.
What Does AB 831 Do?
Spearheaded by Assemblymember Avelino Valencia, AB 831 doesn’t just regulate; it largely prohibits the operation of sweepstakes casinos and sports betting companies within California. The bill casts a wide net, targeting not only operators but also suppliers, affiliates, technology providers, payment processors, and even financial institutions that facilitate these activities. Violators face the prospect of hefty fines and even imprisonment – some of the strictest penalties in the nation for this type of platform. The legislation specifically defines and criminalizes the promotion and operation of these online sweepstakes, closing loopholes that have allowed them to flourish.
The Rise of Sweepstakes Casinos and the Backlash
Sweepstakes casinos, often marketed as “free-to-play” platforms, have exploded in popularity due to their easy accessibility and social gaming features. However, their rapid growth has drawn criticism from several corners. California’s Native American tribes, long-standing pillars of the state’s regulated gaming industry, have been vocal opponents, arguing that these unregulated platforms undermine their businesses and jeopardize funding for vital community programs. They contend that the lack of oversight creates an uneven playing field and diverts revenue away from responsible gaming initiatives.
Concerns extend beyond economic competition. Lawmakers have highlighted the risks of exploitation, fraud, and the lack of consumer protections inherent in many of these platforms, a significant number of which operate from overseas, evading U.S. regulations regarding responsible gambling, identity verification, and tax compliance. The recent civil lawsuit filed by Los Angeles prosecutors against Stake.us, along with nominations against content suppliers Evolution, Pragmatic Play, and Hacksaw Gaming, underscores these concerns and has already triggered a wave of withdrawals from the California market. Pragmatic Play and Playtech have already announced their exit.
Tribal Support and Legislative Journey
The bill enjoys strong support from key tribal groups, including the Yuhaaviatam and the California Native Game Association (CNIGA), who see AB 831 as a necessary step to protect their established gaming operations. “State voters have consistently demonstrated their trust in Native tribes to operate gaming facilities responsibly and ethically,” a tribal representative stated. “This bill ensures that California’s gaming policies aren’t circumvented by unregulated sweepstakes operators.”
AB 831’s path to passage hasn’t been without minor adjustments. The bill underwent a “gut-and-amend” process in the Senate, and was modified to exclude legitimate sweepstakes promotions. Lawmakers have repeatedly emphasized that the legislation will not impact games operated by licensed entities under California’s existing lottery and gambling control laws. After passing the Senate, the bill now returns to the House of Representatives for a final vote before heading to Governor Gavin Newsom’s desk. With unanimous Senate approval and tribal backing, its passage appears highly likely.
A National Trend Towards Regulation
California isn’t alone in its efforts to regulate or ban sweepstakes casinos. As of September 2025, New York, Connecticut, Montana, Nevada, and New Jersey have already enacted prohibitions. Washington, Michigan, and Idaho have long-standing regulations in place, while Delaware, Louisiana, West Virginia, and Maryland have issued cease-and-desist orders. Massachusetts is also considering similar legislation (House Bill 4431). This growing national trend reflects a broader push for stricter oversight of online gaming, including daily fantasy sports and predictive markets.
The passage of AB 831 marks a pivotal moment in California’s gaming history, signaling a commitment to protecting consumers, supporting tribal gaming, and ensuring a level playing field for all operators. As the bill moves towards final approval, the industry and observers alike are bracing for significant changes in the state’s online gaming landscape. Stay tuned to archyde.com for continued coverage of this developing story and its implications for the future of gaming in California and beyond.
