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California considers banning sweepstakes casinos
California lawmakers are considering Assembly Bill 831, introduced by Assemblymember Avelino Valencia (D-Anaheim), which aims to ban online sweepstakes casinos using virtual currencies to mimic real-money gambling.
The Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA) support the bill, arguing that these platforms threaten the integrity of tribal gaming. Tribal casinos received voters’ support, contribute nearly $25 billion to the state economy, and support more than 112,000 jobs.
Lynn Valbuena, Chairwoman of the Yuhaaviatam Tribal Council, said:
“Illegal online gaming now threatens this foundation.”
AB 831 would also penalize anyone promoting or enabling these sweepstakes, including influencers and celebrities. Industry figures like Drake, Paris Hilton, and Ryan Seacrest could be impacted if found to have promoted these platforms.
Avelino Valencia commented:
“We cannot look the other way while these platforms exploit legal grey areas. These operations undermine the voter-approved framework that affirms Tribal governments’ sovereign right to conduct gaming in California. AB 831 strengthens that framework and ensures gaming in California remains fair and accountable.”
Not everyone supports the proposal. The Social and Promotional Games Association criticized the bill for being rushed through a “gut-and-amend” process without public hearings or expert input. They also warn that the language could unintentionally affect legal sweepstakes run by brands like Microsoft, Marriott, or Starbucks.
If passed, AB 831 would make California one of several states that get rid of online sweepstakes casinos. The bill is currently awaiting a hearing in the California Senate.
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