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One Prominent Native Tribe Opposes Ban on Sweepstakes Casinos in California

Sports Writer

Publish Date: Aug 19, 2025

Fact checked by: Sara Jane Gamelli

Key Points

Kletsel Dehe Wintun Nation opposes ban on sweepstakes casinos in California
Economic organization within Kletsel Dehe Wintun Nation has signed a partnership agreement with Australian-based provider of free-to-play gaming apps
Assembly Bill 831 under consideration now would prohibit sweepstakes and social casinos in California

A large portion of the tribal nations in California are lined up in support of Assembly Bill 831, which would define and prohibit so-called "sweepstakes" and "social" casinos in that state.

The Kletsel Dehe Wintun Nation and its Kletsel Economic Development Authority (KEDA) recently sent a letter to the California State Senate to voice opposition to AB831.

california state capitol building at night

“This bill lacks unanimous support among California tribes, has advanced without meaningful consultation with many of us, and threatens our inherent right to create legitimate revenue streams to support our people," KEDA wrote in the letter.

California is the latest state to see lawmakers take steps to ban sweepstakes casinos and other forms of online gaming that straddles the line if legality.

Last week, a New Jersey bill that bans such games was signed into law by the state governor

Nevada, Montana, and Connecticut have also passed laws prohibiting them. Several other jurisdictions have decided to use cease-and-desist orders to handle sweepstakes casinos.

KEDA is the first major native tribe organization in California to come out publicly against AB831, which has supporters from both major political parties.

KEDA's motives may be spurred by economics. Last week, KEDA and VGW, a gaming company known for its sweepstakes offerings, announced a partnership.

The Cheif Executive Officer of KEDA, Eric Wright, cites alarming poverty statistics within rural tribes as a reason for his opposition to bans on what could be revenue streams.

Online gaming platforms, Wright says, are “one of the few viable ways for geographically isolated tribes to fund essential services: healthcare, education, housing, food security, and social programs.”

If Kletsel Dehe Wintun Nation, located in Williams, wants to launch its own sweepstakes casino apps in the future, a ban on such platforms is a threat. So far, a handful of tribes have released mobile apps that serve as basically sweepstakes or social casinos in the state.

Why sweepstakes casinos are coming under scrutiny

Sweepstakes casinos use a payment model that is structured around "fake" currency such as coins or tokens. Players can register and play the games without having to connect a payment source like a bank account or credit card.

When a customer "wins" while playing slots or casino table games, they receive tokens or coins.

The problem with sweepstakes casinos arise when customers can redeem their digital currency like tokens/coins for prizes or even cash. The prize component of redemption is why these apps are called "sweepstakes casinos."

Because no money is being played or awarded, the activity can technically be classified as non-gaming

Many tribal nations balk at such policies because they have been granted exclusive gaming rights via compacts and federal recognition.

The so-called "social casinos" are similar apps that offer slots and other casino games without playing real money. Consumers garner tokens or coins, etc. and are ranked on leaderboards against other players. In the case of most social casino apps, coins cannot be redeemed for cash nor prizes.

What the VGW and KEDA partnership means for California

With headquarters in Australia, VGW has long been a major presence in free-to-play casino gaming platforms. Now as a partner with KEDA, the economic arm of a major California tribal nation, VGW can leverage its expertise to potentially influence the future of online casinos in the Golden State.

In statements by both VGW and KEDA, the message stresses a commitment to creating revenue opportunities for California tribes that face stark poverty. That issue has been a touchpoint in this state, that has a complicated history with legal gaming.

While it only represents one tribe among many, KEDA can now lobby state lawmakers to act on behalf of the purse strings of vulnerable members of native tribes.

Such an appeal worked well in 2023 when two ballot proposals that would have legalized sports betting in ways that could have jeopardized the sovereignty of tribal nations, were defeated.

California is the seventh-largest economy in the world. It's economic engine is a tremendous boon to the United States and serves as a lucrative prize for gaming companies who wish to see legal online casinos and sportsbooks here.

AB831 is currently under consideration by a State Senate committee. It could come to the floor for a vote later this year before recess in December. Get the latest updates in our Ballislife Play section.

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