California Governor Gavin Newsom has formally signed AB 831 into law, making it unlawful to run or promote online sweepstakes gambling establishments in the state. The brand-new statute takes aim at digital platforms that use a "dual-currency" design to simulate casino betting under the guise of sweepstakes.
Under the law, anyone who operates, performs, provides, or promotes a covered online sweepstakes video game might face misdemeanor charges.
Moreover, the law extends liability to supporting entities such as payment processors, platform suppliers, geolocation services, media affiliates, and other indirect actors.
What AB 831 Becoming Law Means for California Online Sweepstakes Casinos
With AB 831 now in result, online sweepstakes casinos in California need to cease operations or risk prosecution. The law clearly criminalizes their core business design. Entities that had actually served simply as facilitators or promoters will also be susceptible.
The brand-new law closes legal loopholes that these platforms made use of by they were sweepstakes, not betting. It redefines "gambling-themed video games" to include slots, table video games, bingo, lotto, and simulated betting connected to cash or prize payments.
In addition, the law protects carve-outs for sweepstakes that do not award money or cash equivalents, thus excusing genuine marketing projects by brands. The maximum penalty caps at a fine up to $25,000 and/or up to one year in county jail.
Tribal video gaming interests see the law as defense of their constitutional and compact-based exclusivity over betting.
Reception from Lawmakers, Supporters, and Detractors
Supporters, including tribal federal governments and the California Nations Indian Gaming Association, hailed the bill as required to protect regulated gaming integrity. Tribal supporters argued that sweepstakes casinos weaken voter-approved gaming law and profits circulations.
Assemblymember Avelino Valencia, the expense's author, said these platforms exploited legal loopholes and undermined California's controlled gaming system.
But critics from the sweepstakes industry say AB 831 overreaches. The Social and Promotional Games Association and the Social Gaming Leadership Alliance cautioned that the law could harm genuine digital promotions. They also argued it could broaden criminal liability beyond operators.
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AB 831 Signed: California Bans Online Sweepstakes Casinos
jonellemagnus edited this page 2026-04-29 14:44:19 +02:00