California Bill To Ban Sweepstakes Gaming Covers Every Base

Casino Reports has seen the proposed amendments to California’s Assembly bill AB831, and it would outlaw all online gambling with sweepstakes prizing, including casino and sports betting operations.

The bill, which was gutted and amended by Assemblyman Avelino Valencia, would make it a misdemeanor to operate, promote, or even support sweepstakes games that mimic casino-style gambling and offer players a chance to win cash or cash-equivalent prizes. That includes online slot machines, video poker, table games like blackjack and roulette, sports betting, bingo, and lottery-style games.

The bill doesn’t just apply to operators — it also targets payment processors, geolocation services, platform providers, gaming content suppliers, and affiliate marketers. Any company found supporting such games in California, directly or indirectly, could face up to $25,000 in fines and up to one year in county jail.

The bill tightens existing provisions in California’s Business and Professions Code, which already prohibits deceptive contest practices, by explicitly adding digital and mobile sweepstakes games to the list of banned formats. It defines both “direct” and “indirect” consideration, a legal distinction frequently used to determine whether an activity qualifies as gambling under state law.

Exceptions are carved out for limited-time promotional sweepstakes tied to the genuine sale of consumer goods or services, provided they don’t operate like ongoing virtual casinos or award real money.

Also in the bill …

AB831 also includes a procedural change to California’s tribal-state compact law, giving lawmakers 20 days (up from 15) to review compacts after returning from recess, which — in the bill’s original form — was all it contained.

The move to amend AB831 was first reported by Howard Glaser, global head of government affairs at Light & Wonder and a vocal critic of sweepstakes casinos. In a LinkedIn post, Glaser noted the amended bill closely mirrors legislation that passed unanimously in New York, banning the promotion or facilitation of online sweepstakes by any “person, entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate.”

That language, which was closely mirrored in the amendments seen by Casino Reports, would put celebrity endorsers of sweepstakes casinos — such as Drake, Paris Hilton, and Ryan Seacrest — firmly in the crosshairs of law enforcement.

As noted in Casino Reports’ earlier report, sources indicate that Yaamava’ Resort and Casino was a key player behind the newly worded bill, and that tribe runs its own sweepstakes-style site.

SPGA response

The Social and Promotional Games Association (SPGA) issued a statement Monday after seeing the text of the amended bill, calling it a “backroom ban” made possible by a “controversial ‘gut and amend’ maneuver” as a legislative deadline neared.

“This isn’t how sound policy gets made,” a spokesperson for the SPGA said via press release. “A last-minute effort to outlaw legal digital games, without public debate, expert input, or economic analysis, sends a chilling message to entrepreneurs, innovators, and investors across the state.

“California voters didn’t sign on for backroom deals dictated by powerful political interests. With the state facing wildfires, a housing crisis, and a full federal assault on Californians’ rights, it’s astounding that any lawmaker would make banning mobile games a priority.”

The SPGA requested that California legislators and Gov. Gavin Newsom reject AB831.