AB 831 Signed: California Bans Online Sweepstakes Casinos
California Governor Gavin Newsom has formally signed AB 831 into law, making it prohibited to run or promote online sweepstakes casinos in the state. The brand-new statute takes goal at digital platforms that utilize a "dual-currency" design to simulate gambling establishment wagering under the guise of sweepstakes.
Under the law, anyone who runs, conducts, 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 service providers, geolocation services, media affiliates, and other indirect stars.
What AB 831 Becoming Law Means for California Online Sweepstakes Casinos
With AB 831 now in impact, online sweepstakes casinos in California should cease operations or risk prosecution. The law clearly criminalizes their core company design. Entities that had served simply as facilitators or promoters will likewise be vulnerable.
The brand-new law closes legal loopholes that these platforms exploited by claiming they were sweepstakes, not betting. It redefines "gambling-themed video games" to include slots, table games, bingo, lottery, and simulated betting tied to money or reward payouts.
In addition, the law preserves carve-outs for sweepstakes that do not award cash or money equivalents, therefore exempting genuine advertising projects by brands. The maximum charge caps at a fine as much as $25,000 and/or approximately one year in county prison.
Tribal gaming interests view the law as protection of their constitutional and compact-based exclusivity over gaming.
Reception from Lawmakers, Supporters, and Detractors
Supporters, including tribal governments and the California Nations Indian Gaming Association, hailed the expense as needed to gaming integrity. Tribal supporters argued that sweepstakes casinos weaken voter-approved video gaming law and profits circulations.
Assemblymember Avelino Valencia, the bill's author, stated these platforms made use of legal loopholes and undermined California's controlled gaming system.
But critics from the sweepstakes industry state AB 831 overreaches. The Social and Promotional Games Association and the Social Gaming Leadership Alliance warned that the law might harm genuine digital promotions. They also argued it could expand criminal liability beyond operators.