The California Senate has unanimously approved Assembly Bill 831, legislation that would criminalize the operation of dual-currency sweepstakes casinos that mimic online gambling. The bill now returns to the Assembly for concurrence before heading to Governor Gavin Newsom’s desk.
What AB 831 Does
The measure targets “online sweepstakes games” that meet all of the following criteria:
- Accessible via the internet or mobile devices;
- Use a dual-currency system (coins or tokens plus sweepstakes entries) where play involves direct or indirect payment;
- Simulate casino-style games such as slots, poker, table games, lotteries, bingo, or sports wagering;
- Award cash or cash equivalents as prizes.
Violators face misdemeanor charges with penalties of up to $25,000 in fines, one year in county jail, or both.
The bill also extends liability to third parties – including payment processors, geolocation providers, content suppliers, and affiliates – but only if they knowingly and willfully support an unlawful sweepstakes operation. Lawmakers added clarifying language to shield companies that are not aware of their services being misused.
Why It Matters
Supporters, including tribal gaming groups and consumer protection advocates, say the bill closes a loophole exploited by sweepstakes casinos that argue they are running promotions rather than gambling platforms. These sites often use virtual currency to skirt gambling laws while still offering cash redemption options.
AB 831 does not legalize sports betting or online casinos in California. Instead, it reinforces prohibitions on unregulated gambling while exempting licensed tribal casinos, cardrooms, the state lottery, and legitimate marketing sweepstakes that do not pay out cash equivalents.
Impact on the Market
If signed into law, AB 831 could effectively block operators such as global sweepstakes casinos that run dual-currency models from serving California players. The inclusion of liability for knowingly complicit service providers could also prompt payment companies, platforms, and affiliates to cut ties with sweepstakes operators nationwide.
For bettors, the bill means that popular sweepstakes casino platforms offering slots or poker-style play for redeemable prizes would no longer be legally accessible in California. Legal sports betting and online casinos remain off the table until voters or lawmakers approve separate legalization measures.
What’s Next
The Assembly must now concur with Senate amendments. If it does, the bill will go to Governor Newsom, who will decide whether to sign it into law. Enforcement would then fall to state and local authorities, with penalties applied to operators and knowingly complicit partners.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: https://sportshandle.com/california-senate-passes-bill-to-ban-online-sweepstakes-casinos/