California Senate panel backs bill to ban sweepstakes casinos
A key California Senate committee has approved a controversial bill that seeks to outlaw sweepstakes casinos across the state, marking a major step in what could be the beginning of the end for this form of digital entertainment across the United States.
Reportedly, Assembly Bill 831 (AB 831), introduced by Assemblymember Avelino Valencia, was recently approved by the Senate Governmental Organisation Committee, bringing it closer to becoming law.
The bill has gained strong support from the Indian Gaming Association (IGA) and the California Nations Indian Gaming Association (CNIGA), who argue that sweepstakes-style gaming undermines regulated tribal gaming operations.
All about bill AB 831
AB 831 aims to ban not just the operation of sweepstakes casinos, but also their wider ecosystem. This includes platform providers, payment processors, marketing affiliates, and even celebrities who promote such services. If passed, prominent figures like Drake, Paris Hilton, and Ryan Seacrest could face legal scrutiny for endorsing sweepstakes platforms.
Games such as Ultimate Slot of America, which offer “sweeps coins” convertible into real prizes, fall within the bill’s crosshairs. These offerings have long operated in a grey zone — not classified as traditional gambling, yet often resembling it in practice.
Concerns & legislative pushback
However, an abrupt shift in the bill’s focus has led to criticism of its formation. A month after the Assembly passed its first version of the bill, which had nothing to do with gaming, the Senate changed it in June to include the prohibition on sweepstakes. Critics contend that there was little time for stakeholder input or public discussion due to this abrupt change.
The bill has been strongly opposed by the Social & Promotional Games Association (SPGA), which calls it “too vague, too rushed, and too risky.” According to the association, there is potential for legal ambiguity and overreach because the legislation does not provide clear definitions for important terms like “dual currency system” and “cash equivalents.”
SPGA further warned that the bill could inadvertently criminalise routine promotional sweepstakes used by respected brands like Starbucks, Microsoft, and Marriott — all of which run loyalty schemes based on prize entries.
Similarly, the Social Gaming Leadership Alliance (SGLA) has urged lawmakers to reconsider the bill. Jeff Duncan, the group’s Executive Director, argued that AB 831 challenges well-established sweepstakes models used across various industries.
California is the latest in a string of US states to move against sweepstakes gaming. States such as Arizona, Pennsylvania, Connecticut, and Maine have already issued bans or regulatory actions. New York’s ban is pending the governor’s signature, while Ohio and Mississippi are also reviewing similar proposals.
Bill set for next hearing
The bill is now headed to the Senate Public Safety Committee for its next hearing, scheduled for 15 July 2025. With California’s legislative session running until September 12, 2025, the bill could still undergo changes or be carried over into the 2026 session if needed.
Meanwhile, California Attorney General Rob Bonta recently declared that daily fantasy sports contests are illegal under current state law, signalling a broader crackdown on unregulated digital gaming.
As lawmakers, industry leaders, and stakeholders continue to clash, the future of sweepstakes casinos in the United States remains uncertain as more states move to ban sweepstakes.
