California Governor Gavin Newsom has officially signed AB 831 into law, making it illegal to run or sweepstakes gambling establishments in the state. The brand-new statute takes objective at digital platforms that use a "dual-currency" model to mimic gambling establishment betting under the guise of sweepstakes.

Under the law, anyone who operates, conducts, offers, or promotes a covered online sweepstakes game may deal with 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 impact, online sweepstakes gambling establishments in California need to cease operations or risk prosecution. The law clearly criminalizes their core service design. Entities that had actually served simply as facilitators or promoters will likewise be susceptible.

The new law closes legal loopholes that these platforms exploited by declaring they were sweepstakes, not gambling. It redefines "gambling-themed games" to include slots, table video games, bingo, lottery, and simulated wagering tied to money or reward payouts.

In addition, the law preserves carve-outs for sweepstakes that do not award cash or money equivalents, consequently exempting genuine advertising projects by brand names. The optimum charge caps at a fine up to $25,000 and/or up to one year in county jail.

Tribal gaming interests view the law as security of their constitutional and compact-based exclusivity over gambling.

Reception from Lawmakers, Supporters, and Detractors

Supporters, including tribal federal governments and the California Nations Indian Gaming Association, hailed the bill as needed to secure regulated video gaming integrity. Tribal supporters argued that sweepstakes gambling establishments weaken voter-approved gaming law and income circulations.

Assemblymember Avelino Valencia, the expense's author, stated these platforms made use of legal loopholes and weakened California's managed video gaming system.

But critics from the sweepstakes industry say AB 831 overreaches. The Social and Promotional Games Association and the Social Gaming Leadership Alliance alerted that the law might damage genuine digital promos. They likewise argued it might broaden criminal liability beyond operators.