California Senate Advances AB 831 to Ban Sweepstakes Gambling and DFS
California lawmakers have taken a decisive step toward outlawing sweepstakes-style casinos and daily fantasy sports (DFS). On September 8, Assembly Bill 831 (AB 831) passed the State Senate with a 36-0 vote, reflecting rare bipartisan unity. The measure now heads back to the State Assembly, which must approve it by September 12 before it can be presented to Governor Gavin Newsom. He will have until October 12 to sign or veto the legislation.
Scope of the Bill
Originally filed by Assemblyman Avellino Valencia, AB 831 went through the “gut-and-amend” process, replacing the contents of a previous bill to speed its way through the legislature. Despite significant changes along the way, no lawmaker has voted against it at any stage.
The proposal focuses on shutting down sweepstakes casinos that mimic gambling through dual-currency systems and simulated sports betting. If enacted, it would make it illegal not only to operate such businesses but also to knowingly support them. Payment providers, platform operators, game developers, and affiliate marketers would all face liability under the law.
Lawmakers made revisions to ensure individual players would not be targeted, while legitimate promotional sweepstakes, such as Starbucks Rewards or McDonald’s Monopoly, would remain unaffected.
Tribal Perspectives and Protests
California’s tribal communities, who are major stakeholders in the state’s gambling market, are split on AB 831. The California Nations Indian Gaming Association (CNIGA) and influential tribes such as the Yuhaaviatam of San Manuel Nation have endorsed the bill, saying it protects their exclusive rights to operate legal gambling on tribal lands.
However, smaller tribes relying on partnerships with social gaming and sweepstakes operators have voiced opposition. Among them are the Kletsel Dehe Wintun Nation of the Cortina Rancheria and the Mechoopda Indians of Chico Rancheria. These groups, which have ties to companies such as VGW and Yellow Social Interactive, warn that the law would cut off much-needed economic opportunities.
Members of these tribes staged a protest outside the State Capitol on the day of the Senate vote, emphasizing the financial harm that a ban could inflict on less wealthy communities. Still, the overall tribal consensus tilts toward support for the legislation.
Industry Fallout and Legal Pressure
The legislative push comes amid intensifying legal scrutiny of sweepstakes platforms. The Los Angeles City Attorney’s Office recently filed a civil lawsuit against Stake.us, accusing the company of running illegal gambling operations. The case also names content providers Evolution, Hacksaw Gaming, and Pragmatic Play as defendants.
The lawsuit had immediate ripple effects. Pragmatic Play quickly announced it would stop supplying sweepstakes operators in the United States, while other firms withdrew from California altogether. Playtech, though not part of the case, also ended its services to sweepstakes platforms in the state.
What Comes Next
With unanimous support in the Senate and little opposition in the Assembly, AB 831 is widely expected to reach Governor Newsom’s desk. While the governor has not explicitly said whether he views DFS as gambling—aligning with Attorney General Rob Bonta’s stance—it would be a surprise if he chose to block the measure.
If enacted, the law would close off a controversial gray area in California’s gambling landscape, reshape opportunities for tribes, and accelerate the retreat of sweepstakes operators from the state.
Source: California Senate unanimously passes ban on sweepstakes gambling, LCB.org, September 11, 2025.