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California sweepstakes casino saga took another turn on Wednesday

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Publish Date: Sep 04, 2025

Fact checked by: Sara Jane Gamelli

This article was written prior to AB 831 being enacted into law, meaning some of the information may be outdated or inaccurate. From January 1, 2026 all sweepstakes sites are no longer legal in California.

California Assembly Bill 831 was read a third time on the state Senate floor and amended, with the addition of exempting state-run lottery games and “occasional” sweepstakes-based promotions from criminalization.

Sweepstakes casinos operators that oppose the bill have argued that California Lottery’s online games, in addition to consumer-facing, sweeps-style promos run by companies would be also prohibited under the legislation.

The new amended language reads as follows:

This bill would specify that using or offering for use any method, including an internet website or an online application, in the manner described above is prohibited, and would make conforming changes. The bill would delete the term “gambling-themed games” from the above-described provisions and revise the description of “gambling-themed game” “gambling” to include examples, such as lottery games, bingo, sports wagering, or any game that mimics or simulates similar games, gambling, as specified. The bill would make an unfair practice using or offering games of these types that use a system of payment that allows a person to play or participate in a simulated gambling program for direct or indirect consideration, as specified, and for which the person playing the simulated gambling program may become eligible for a prize or award, cash or cash equivalents, or a chance to win a prize or award, or cash or cash equivalents, in a business establishment, on the internet, or using an online application. The bill would specify that these provisions do not make a game that does not award cash prizes or cash equivalents unlawful.

This bill would specify that these provisions do not make unlawful or otherwise restrict lawful games and methods used by a gambling enterprise licensed under the Gambling Control Act or operations of the California State Lottery. The bill would specify that these provisions do not make unlawful game promotions or sweepstakes conducted by for-profit commercial entities on a limited and occasional basis as an advertising and marketing tool that are incidental to substantial bona fide sales of consumer products or services and that are not intended to provide a vehicle for the establishment of ongoing gambling or gaming.

The bill was then ordered for a second reading.

Last Friday, the seven-member California Senate Appropriations Committee moved CA AB 831 out of the suspense file and onto the full Senate, where the new amended actions occurred on Wednesday.

The suspense file is a procedural mechanism used by the Appropriations Committees in both the state Senate and Assembly to manage bills with significant fiscal impacts.

The bill needs a simple majority in the Senate and then goes back to the Assembly. If approved, California Bill 831 will go to Gov. Gavin Newsom's desk for his signature to be put into law.

If A.B. 831 does become law, it would prohibit operating online sweeps that use a “dual currency” model for casino-like wagering, including sports betting.

It will contain penalties for those who operate and offer online sweepstakes casinos, by creating a misdemeanor violation which can result in up to one year of jail time and $1,000-$25,000 in fines.

Stay tuned!

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