Sports Betting Sites / Play / Gov. Newsom signs into law AB 831, set to go into effect Jan. 1, 2026

Gov. Newsom signs into law AB 831, set to go into effect Jan. 1, 2026

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Publish Date: Oct 13, 2025

Fact checked by: Sara Jane Gamelli

Signed, sealed, delivered.

California Gov. Gavin Newsom did some work over the weekend officially signing into law Assembly Bill 831 on Saturday, banning any online sweepstakes casinos for operating in the state.

The law will go into effect on Jan. 1, 2026.

The Golden State becomes the fifth state to enact such legislation, along with Connecticut, Montana, Nevada, and New Jersey. New York could be next in line having passed similar legislation this summer and is just awaiting Gov. Kathy Hochul's penmanship.

The California Senate back on Friday, Sept. 12 moved AB 831 out of its chamber (along with concurrence), after passing through the state's Assembly Governmental Organization Committee by a 20-0 vote on Thursday, Sept. 11. It was then sent to the Governor's desk.

AB 831 was actually presented to the governor’s office on Wednesday, Sept. 24, and he had 12 days (excluding Sundays) to either sign, veto, or not sign (letting it become law).

Gov. Newsom just the first option with his signature

When it does become law on the first day of the new year, it would prohibit operating online sweeps that use a “dual currency” model for casino-like wagering, including sports betting. It will also 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.

Vocal Opposition

On Sunday, Oct. 12, the Social Gaming Leadership Alliance (SGLA) expressed their dismay and opposition to Newsom's signature.

Since the introduction of AB 831 back in June, the SGLA, along with many California tribal nations and other groups, have been vocal in their opposition to the ‘gut-and-amend’ bill.

Tribes such as Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria, and Big Lagoon Rancheria have opposed AB 831 because it would limit economic opportunities available to tribes.

Did they really wanted to ban online social games?

“Voters, players who love online social games, California tribes, and online social games operators all made their position clear: they didn’t want a ban on this popular, safe form of entertainment,” said Jeff Duncan, Executive Director of SGLA, in an official statement. “We hoped that Governor Newsom would see past the anti-competitive efforts of the powerful, well-funded tribes behind this bill and veto AB 831, but he chose the easy, short-sighted path and turned his back on choice, innovation and economic gains.”

Earlier this summer, a nationwide poll with an oversample of California voters revealed that residents overwhelmingly opposed banning online social games with sweepstakes components. Instead, 85% of California voters agreed that the state should modernize and update laws to regulate and tax online social gaming. Additionally, more than 20,000 Californians wrote over 34,000 emails and made nearly 6,500 calls directly to legislators and to Governor Newsom opposing AB 831.

SGLA also stated that Gov. Newsom signed a bill that had zero industry consultation and was backed by conflicted proponents, impinging on Californians’ choice and hurting California’s reputation as a pro-business, pro-innovation state.

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