CALIFORNIA – California’s legislature has unanimously passed Assembly Bill 831, September 12, a measure that would ban online sweepstakes gaming in the state.
The bill now awaits action from Governor Gavin Newsom, who has until October 12 to sign or veto the legislation. If he takes no action, it will become law.
AB 831 targets sweepstakes-style online casinos that use dual-currency models – such as “Gold Coins” and “Sweeps Coins.” Supporters argue that these platforms effectively sell virtual currencies for a chance to win cash or prizes, circumventing traditional gambling regulations.
“Sweepstakes casinos do not contribute directly to California’s tax revenue in the same way traditional brick-and-mortar gaming establishments—such as cardrooms, horse racing venues, and tribal casinos—do,” according to the bill analysis.
Supporters argue that, despite rapid growth, California’s lack of regulation keeps sweepstakes casinos from contributing comparable fiscal benefits.
Violators face fines up to $25,000
The bill specifically targets operators, platform providers, payment processors, and affiliate marketers involved in dual-currency sweepstakes systems. Violators face fines up to $25,000 and up to one year in jail.
Individual players are not criminalized – enforcement focuses on those running or supporting the platforms.
Bill favors wealthier tribes
Opponents, such as VGW, say they want to work with the legislature on sensible regulations that protect consumers while generating state revenue.
“Based on industry projections by Eilers & Krejcik, California could generate annual revenue of $149 million through sales tax alone,” VGW said.
Smaller tribes, such as the Sherwood Valley Band of Pomo Indians, argue the ban limits digital commerce opportunities and supplemental revenue, giving advantage to wealthier tribes that already operate casinos.
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