California Governor Gavin Newsom has formally signed AB 831 into law, making it illegal to run or promote online sweepstakes casinos in the state. The new statute takes aim at digital platforms that utilize a "dual-currency" design to simulate casino betting under the guise of sweepstakes.

Under the law, anybody who runs, carries out, provides, or promotes a covered online sweepstakes 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 result, online sweepstakes gambling establishments in California must stop operations or risk prosecution. The law clearly criminalizes their core organization model. Entities that had served simply as or promoters will also be vulnerable.

The new law closes legal loopholes that these platforms exploited by claiming they were sweepstakes, not betting. It redefines "gambling-themed games" to consist of slots, table video games, bingo, lottery, and simulated wagering connected to cash or reward payouts.

In addition, the law preserves carve-outs for sweepstakes that do not award money or cash equivalents, consequently excusing legitimate marketing projects by brand names. The optimum charge caps at a fine approximately $25,000 and/or as much as one year in county jail.

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

Reception from Lawmakers, Supporters, and Detractors

Supporters, consisting of tribal governments and the California Nations Indian Gaming Association, hailed the bill as needed to protect regulated video gaming stability. Tribal fans argued that sweepstakes casinos undermine voter-approved gaming law and profits flows.

Assemblymember Avelino Valencia, the bill's author, said these platforms exploited legal loopholes and undermined California's managed gaming system.

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