California’s Assembly Bill 831 (AB 831), aimed at banning online sweepstakes gambling, has been amended once again as it advances through the state Senate. The bill, which previously underwent a significant overhaul to impose a full sweepstakes ban, is now being refined to clarify its scope and protect certain promotional activities.
The latest amendments make it explicit that consumer promotions conducted by commercial entities, such as Starbucks or McDonald’s, are exempt from the ban. Additionally, the California State Lottery and games run by licensed operators under the Gambling Control Act remain unaffected. Lawmakers also revised the language, replacing “gambling-themed games” with the more precise term “gambling,” and introduced a key legal distinction: only those who “knowingly and intentionally” promote or facilitate dual-currency sweepstakes will face penalties. This protects ancillary service providers, including payment processors, banks, and geolocation companies, from being inadvertently targeted.
Despite support from major tribal organizations such as the Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA), opposition has grown. Smaller tribes, including the Kletsel Dehe Wintun Nation, alongside cardroom cities and operators like Publishers Clearing House, argue that a full sweepstakes ban could restrict tribal autonomy, reduce economic opportunities, and disproportionately impact smaller operators exploring digital gaming.
California joins several other US states, including New York, Connecticut, Nevada, and New Jersey, that have either outlawed sweepstakes platforms or enforced restrictions through legislation and regulatory action. As the debate continues, AB 831 represents a critical moment in shaping the regulatory landscape for online sweepstakes gambling in the United States, balancing consumer protection, commercial activity, and tribal and operator interests.
Stakeholders across the state are closely monitoring developments, as the final version of AB 831 will determine the future of sweepstakes operations, marketing campaigns, and digital gaming innovation in California.
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