The Social Gaming Leadership Alliance (SGLA) has strongly opposed Assembly Bill 831 (AB 831), which is supported by tribal gaming organizations. The SGLA has asked lawmakers to reject the idea. The law may completely shut down the sweepstakes gaming sector in California, according to the Social and Promotional Games Association (SPGA), which also revealed that a number of organisations had joined the opposition.
Main objectives of the bill
AB 831 targets sweepstakes casinos in California, aiming to reinforce tribal gaming rights, close legal loopholes exploited by online platforms, and penalise those facilitating unregulated gambling. If enacted, the bill could affect businesses offering free-to-play games with virtual currencies, potentially resulting in fines of up to $25,000 and even imprisonment.
SGLA’s opposition to AB 831
The SGLA argues that the bill could expose a wide range of businesses—including game developers, payment processors, geolocation firms, and content creators—to criminal liability. The group also raises concerns about consumer access, noting that social casino games have been available in California since 2012.
Led by former Congressman Jeff Duncan, the SGLA is advocating for a more measured, two-year legislative process to allow for broader consultation and to avoid unintended consequences for the digital gaming sector.
Duncan stated, “This rushed proposal not only cuts Californians off from the free-to-play games they enjoy and a potential revenue stream for the state, but it also threatens to criminalise the businesses that drive California’s economy. We urge California lawmakers to take California businesses out of the crosshairs by making AB831 a two-year bill, allowing for a more thoughtful, consultative and collaborative process.”
Support from tribal entities
California’s Native American tribes support AB 831, citing their exclusive rights to operate casinos under state law. They argue that sweepstakes casinos undermine tribal sovereignty and create unfair competition.
Assemblymember Avelino Valencia, who introduced the bill, states that it is designed to uphold the state’s voter-approved gaming framework and close existing legal loopholes. Tribal leaders, including Chairwoman Lynn Valbuena of the Yuhaaviatam of San Manuel Nation, have stressed the importance of protecting long-standing investments in regulated gaming.
Potential impact of the legislation
AB 831 could have significant implications for California’s digital gaming industry. Companies that generate revenue through virtual gaming platforms may face sudden legal and financial challenges. Consumers who use these platforms for casual entertainment could lose access to familiar games. Critics also argue that by avoiding the option to regulate and tax social casino platforms, the bill may eliminate a potential source of state revenue.
The political process and what’s next
The bill has passed the California State Assembly and is currently under review by the Senate Public Safety Committee. If approved, it will proceed to the Appropriations Committee before being put to a full Senate vote.
The Senate Public Safety Committee plays a crucial role in determining the bill’s future. Should the bill reach Governor Gavin Newsom, the SGLA is expected to lobby for a veto, making his decision potentially pivotal for the future of online gaming regulation in the state.
California’s decision on AB 831 could influence national policy. As a leader in technology and regulation, the state’s approach may shape how other states, including Texas and Florida, address similar issues in digital gaming.
