California, September 27, 2025
News Summary
California has made a significant move to regulate the online gambling sector by passing Assembly Bill 831. This legislation prohibits online sweepstakes casinos that resemble traditional gaming. With unanimous support from both chambers, the bill aims to protect the state’s gaming framework and enforce strict penalties for violations. Governor Gavin Newsom’s decision by October 12 will determine if the bill takes effect on January 1, 2026. While tribal governments support the bill, some smaller tribes worry about its impact on their revenue.
California has taken a significant step towards regulating the online gambling industry by passing Assembly Bill 831, which outlaws online sweepstakes casinos that mimic traditional casino games. The bill has received unanimous support from both chambers of the California Legislature, highlighting widespread concern over the impact of these online platforms.
Authored by Assemblymember Avelino Valencia (D-Anaheim), AB 831 cleared the Assembly with a vote of 79-0 on September 12, after easily passing through the Senate without opposition. Now, the bill awaits the decision of Governor Gavin Newsom, who must sign it by October 12 for it to take effect on January 1, 2026.
If enacted, the measure would extend liability to not only operators of online sweepstakes casinos but also payment processors, affiliates, and other companies involved in supporting this industry. Violations under this new legislation could result in misdemeanor charges, fines of up to $25,000, and potential imprisonment of up to one year in a county jail.
Supporters of the bill, including various tribal governments and the California Nations Indian Gaming Association (CNIGA), argue that it aims to protect the state’s voter-approved framework that grants tribes exclusive rights to engage in casino-style gaming. They emphasize that illegal online platforms threaten the benefits of regulated gaming, potentially jeopardizing close to $25 billion generated for California communities and the jobs of over 112,000 residents.
Among the supporters, the Yuhaaviatam of San Manuel Nation has also expressed strong backing for AB 831, emphasizing the integrity with which tribes have operated gaming for over 20 years. However, not everyone is in favor of this legislation. Opposition stems from sweepstakes operators, as well as smaller tribes like the Kletsel Dehe Wintun Nation, Sherwood Valley Band of Pomo Indians, and Mechoopoda Indian Tribe of Chico Rancheria. They argue that the bill disproportionately benefits larger tribal casinos at the expense of smaller tribes, limiting their potential revenue streams.
Critics, including the Social Gaming Leadership Alliance (SGLA), have stated that the bill could be detrimental to a billion-dollar industry, expressing concern that it will harm consumers and stifle digital innovation. They are urging Governor Newsom to veto the bill.
AB 831 aims to close loopholes that have allowed sweepstakes operators to claim their platforms are merely promotional games rather than gambling. If enacted, it would restrict consumer access to popular online sweepstakes casino platforms that offer redeemable prizes.
It is important to note that this legislation does not legalize sports betting or online casinos but instead reinforces existing prohibitions against unregulated gambling. Licensed tribal casinos and legitimate marketing sweepstakes would remain exempt from these regulations. Previous related legislation includes Assembly Bill 549, signed by Newsom in September 2024, which allows tribes to take legal action against private cardrooms that are perceived to be circumventing exclusivity rules.
Some concerns have been raised that a ban on sweepstakes casinos may drive Californians towards unregulated gambling options available through offshore websites. As of now, Governor Newsom has yet to publicly disclose his position on AB 831.
Before the bill reaches the governor’s desk, the Assembly must also concur with Senate amendments, setting the stage for what could be a pivotal change in California’s gambling landscape.
FAQ
What is Assembly Bill 831?
Assembly Bill 831 targets online sweepstakes casinos that mimic casino games and has received unanimous approval from both chambers of California’s Legislature.
What could happen if Governor Newsom signs the bill?
If signed by Governor Gavin Newsom by October 12, the bill will take effect on January 1, 2026.
What are the penalties for violations under this bill?
Violations could subject operators, payment processors, and affiliates to misdemeanor charges, fines of up to $25,000, and up to one year in county jail.
Who supports and opposes the bill?
Supporters include tribal governments and the California Nations Indian Gaming Association, while opponents come from sweepstakes operators and smaller tribes.
What are the broader implications of the legislation?
The bill aims to close loopholes exploited by sweepstakes operators and does not legalize sports betting or online casinos, reinforcing prohibitions on unregulated gambling.
Key Features of Assembly Bill 831
| Feature | Description |
|---|---|
| Target | Online sweepstakes casinos mimicking casino games |
| Legislative Support | Unanimous approval from both Assembly and Senate |
| Potential Penalties | Misdemeanor charges, fines up to $25,000, up to one year in jail |
| Effective Date | January 1, 2026, if signed by Governor Newsom |
| Key Supporters | Tribal governments, California Nations Indian Gaming Association |
| Key Opponents | Sweepstakes operators, smaller tribes |
| Loopholes Addressed | Exploitation by sweepstakes operators claiming promotional games |
| Relation to Other Legislation | Reinforces prohibitions, does not legalize sports betting or online casinos |
Deeper Dive: News & Info About This Topic
- Tribal Business News
- Wikipedia: Online gambling
- Sports Handle
- Google Search: California gambling legislation
- Edhat
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
