California Governor Gavin Newsom Signs AB 831 Into Law, Banning Online Sweepstakes Casinos

California has officially prohibited online sweepstakes casinos after Governor Gavin Newsom signed AB 831 into law.

The legislation makes it illegal to facilitate or promote sweepstakes-style online gaming.

Enforcement now extends beyond operators to include payment processors, affiliates, content suppliers, and platform providers.

The law targets unregulated gaming models that mimic casino experiences but operate outside state gambling regulations.

Support From Tribal Gaming Groups

AB 831 received strong backing from the California Nations Indian Gaming Association (CNIGA).

The group argued that sweepstakes-style games violate tribal gaming exclusivity established under state compacts.

California’s tribal casinos hold exclusive rights to certain types of gaming in exchange for revenue sharing with the state.

CNIGA contends that unregulated sweepstakes casinos undercut this exclusivity and the associated financial agreements.

Industry Concerns Over Economic Impact

Opponents, including the Social Gaming Leadership Alliance, warned that the ban could eliminate more than $1 billion in annual economic activity.

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They also cautioned that players may turn to offshore or unregulated markets in response.

Despite these objections, the bill cleared the legislature and was signed into law by Newsom.

The law takes effect immediately, granting regulators authority to enforce violations statewide.

California Follows Other States

With AB 831, California joins Connecticut, Montana, Nevada, and New Jersey in banning online sweepstakes gaming in 2025.

Lawmakers nationwide are increasingly focused on consumer protection, tribal sovereignty, and curbing unlicensed online gambling.

The trend follows similar crackdowns, such as New York’s 2025 enforcement action, which shut down 26 sweepstakes casinos statewide.

Ongoing Legal Disputes Over Tribal Gaming

Separately, a California Superior Court dismissed a lawsuit filed by tribal operators challenging state card rooms that offer house-banked table games.

Tribal groups argue these operations violate their exclusive rights.

The State Indian Gaming Association has announced plans to appeal the ruling.

The case stems from SB 549, which granted tribes the legal standing to sue over exclusivity disputes.

This ongoing legal battle underscores persistent tensions between California’s tribal casinos and commercial card rooms.

These debates have influenced gaming policy in the state for decades.

Future of California Gaming Regulation

With AB 831 now law, attention may shift to regulated online sports betting and iGaming.

Future frameworks will likely need to preserve tribal exclusivity to comply with state agreements.

Industry analysts note that the ban clarifies California’s stance on unregulated online gambling.

It also establishes a pathway forward that emphasizes consumer protection, tribal rights, and market integrity.

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