A bill banning sweepstakes casino operators in California took its first step forward Tuesday.
Lawmakers advanced AB 831, which bans sweepstakes casinos, past the Senate Governmental Organization committee on Tuesday. While the bill advanced, there were questions about the path the legislation has taken.
After an unrelated bill passed the Assembly in early May, the Senate inserted the sweepstakes ban language last month. The California legislative session runs until Sept. 12, but bills can carry over to the 2026 session.
The next hearing is scheduled for July 15 in the Senate Public Safety Committee.
Sweepstakes casino hesitancy
While the legislation did pass the committee stop Tuesday, multiple lawmakers questioned various legal fallouts from the bill.
Some lawmakers did not understand the urgency of the legislation, particularly its insertion into an unrelated tribal gambling bill.
Other legislators supported the bill because it had the support of the state’s tribes, which have exclusivity over most types of gambling in the Golden State.
Golden State ban
Multiple state legislatures have taken action against the sweepstakes casino industry this year, including New York.
A detailed legislative synopsis explains how the legislation penetrates the online sweepstakes industry and makes it unlawful for any party to facilitate, process, or promote sweepstakes-style gambling.
“We cannot look the other way while these platforms exploit legal grey areas,” Assemblymember Avelino Valencia said in a statement. “These operations undermine the voter-approved framework that affirms Tribal governments’ sovereign right to conduct gaming in California. AB 831 strengthens that framework and ensures gaming in California remains fair and accountable.”
The bill could also target a variety of celebrities who have endorsed the operators, including Ryan Seacrest and Drake.
Sweepstakes industry push back
Two organizations representing sweepstakes operators have aggressively opposed the proposed California prohibition. The Social and Promotional Games Association pointed out that the San Manuel Band of Mission Indians operates an online social casino.
The SPGA also said it is “deeply troubled” by the way the language was inserted into a bill already deep in the legislative process. It also said the legislation could impact company rewards programs, like Marriott, Microsoft and Starbucks.
The Social Gaming Leadership Alliance said the ban will push players to black market gambling operators. Similar to the SPGA, the SGLA said the ban could affect companies like Reader’s Digest and McDonald’s.
