California has passed a landmark piece of legislation, Assembly Bill 831 (AB 831), marking a decisive step in the regulation of online gaming within the state. Approved unanimously in both the Senate (36–0) and Assembly (79–0), the bill now awaits the Governor’s signature. AB 831 targets prize-based casinos and dual-currency online sweepstakes, specifically those that mimic casino mechanics under the guise of free-to-play games. Traditional promotional prize draws, such as sweepstakes run by major brands, are excluded from the ban.
The legislation has strong backing from tribal associations, including the Indian Gaming Association (IGA) and California Nations Indian Gaming Association (CNIGA), who describe AB 831 as crucial to defending tribal sovereignty and protecting the constitutional framework of gaming. Tribal leaders emphasize that unregulated sweepstakes operations undermine tribal casinos, a sector that has contributed billions in tax revenue and essential services over the past three decades. Violators of the law face misdemeanour charges, with fines ranging from $1,000 to $25,000 and up to one year in county jail.
Opposition to the bill comes from the Social Gaming Leadership Alliance (SGLA) and several smaller tribes, which argue that the ban could eliminate up to $1 billion in annual economic activity and deprive the state of $200–300 million in potential tax revenue. Critics also warn that overly strict regulations may push the sector underground, creating new enforcement challenges.
AB 831 also addresses technological loopholes, including platforms using cryptocurrencies or alternative payment methods, aiming to ensure fair competition and consumer protection. By distinguishing dual-currency casino-style games from traditional promotional sweepstakes, the bill establishes regulatory clarity while safeguarding the interests of tribal communities. As California moves toward this new regulatory framework, AB 831 stands as a defining moment in online gaming policy, balancing economic, legal, and social considerations.
