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A move to ban online sweepstakes casinos in California would block the unregulated industry from operating in the nation’s largest state, in the name of protecting tribal sovereignty and exclusivity over casino gaming.
The proposed ban is being supported by the California Nations Indian Gaming Association (CNIGA), the Tribal Alliance of Sovereign Indian Nations (TASIN) and the Yuhaaviatam of San Manuel Nation, which operates one of the state's largest tribal casino-resorts in Highland, some 65 miles east of downtown Los Angeles.
James Siva, chairman of CNIGA, said garnering support for the newly filed amendments to Assembly Bill 831 was easy, as tribes are currently dealing with related issues such as sports betting and prediction markets.
“I’m trying to open their eyes and be aware of all these impending threats,” Siva said Wednesday (June 25) during a webinar hosted by the Indian Gaming Association.
“We’ve been aware of sweepstakes for a while, and unfortunately, with everything happening, it kind of got put on the back burner. But this bill came at the perfect time, where tribes are engaged.”
Siva said that California’s tribes are ready to “do what we have to do to protect our exclusivity and sovereignty”.
“We view this as are top legislative priority,” Siva said. “I do think we could get it done this session, I really do. But it is going to take a big effort from all the tribes. This is about holding up the constitution of California. Our exclusivity is in the constitution.”
The California legislature is scheduled to adjourn on September 13, and will reconvene on January 6 to continue its 2025-2026 biennial session. Legislation introduced this session can carry over to the 2026 session.
Assemblyman Avelino Valencia, a Democrat, last week amended AB 831 by striking its prior language and turning the measure into a bill to ban dual-currency online sweepstakes sites that offer games that mimic sports betting and casino games.
The bill, which was originally introduced in February by Democratic Assemblyman James Ramos and passed the Assembly in May, initially included a simple procedural change to California laws governing tribal-state gaming compacts to give lawmakers 20 days, instead of 15, to review compacts after returning from recess.
The bill was ordered to the inactive file in the Senate earlier this month. Because the bill has already passed the Assembly and a Senate committee, it now requires a vote on the floor of the Senate and then a vote of concurrence in the lower house of the legislature before being sent to the governor's desk to be signed into law.
According to AB 831’s daily file status, it was item number 68 on the Senate’s agenda on Wednesday and scheduled for a third reading, or final vote.
In a statement, Valencia said he believes sweepstakes sites are essentially operating as unlicensed gambling businesses.
“We cannot look the other way while these platforms exploit legal grey areas,” Valencia said. “These operations undermine the voter-approved framework that affirms tribal governments’ sovereign right to conduct gaming in California.”
Under the legislation, it would become illegal for any individual or entity to operate, facilitate, advertise, or support sweepstakes casino activities. That could include everything from payment processors to platform providers to geolocation services, and even celebrities that promote the platforms.
In addition, the bill would make it a misdemeanor to operate online sweepstakes sites that mimic casino-style gambling and offer players a chance to win cash or cash-equivalent prizes. Among the simulated games that are prohibited are sweepstakes that replicate lottery-style games, bingo, sports betting, online slot machines, table games, and video poker.
Any individual found to have violated the ban could also be fined up to $25,000 and sentenced up to one year in county jail.
“This is a strong bill,” said Michael Hoenig, vice president and associate general counsel for the Yuhaaviatam of San Manuel Nation. “We need to go after this entire group, top to bottom.”
Otherwise, “we’re kind of chasing after one individual company app”, said Hoenig. “They shut that down, they start up another one.”
The legislation is similar to New York's Senate Bill 5935A, to prohibit sweepstakes operators and various suppliers that support them, and was passed last week by the New York legislature and is currently awaiting Democratic Governor Kathy Hochul’s signature.
If signed into law, New York would become the fourth state, behind Montana, Nevada and Connecticut, to enact legislation against sweepstakes in 2025.
Sweepstakes Group Slams California Ban
A sweepstakes industry trade group is urging California legislators to oppose AB 831, which would ban their industry and potentially prosecute those who support and advertise sweepstakes offerings.
The Social and Promotional Games Association (SPGA) said it was “deeply troubled” by the decision to attempt a “backroom ban” to prohibit sweepstakes games.
“This isn’t how sound policy gets made,” an SPGA spokesman said in a statement. “A last-minute effort to outlaw legal digital games, without public debate, expert input, or economic analysis, sends a chilling message to entrepreneurs, innovators, and investors across the state.”
Both the SPGA and the Social Gaming Leadership Alliance, another trade group founded by VGW, have argued that legislation banning sweepstakes sites could affect McDonald’s Monopoly sweepstakes game, as well as other sweepstakes contests offered by the likes of Marriott and Starbucks.
Hoenig disputed those claims, saying that AB 831 does not make all sweepstakes games illegal in California.
He added that the bill was not designed to stop McDonald’s from offering a sweepstakes game “that does not award cash prizes or cash equivalents”.
The SPGA also described the Yuhaaviatam of San Manuel Nation as being hypocritical, noting the tribe offers its own sweepstakes website. PlayOnline is a website that offers sweepstakes as a means of promoting its Yaamava Resort and Casino, according to screenshots shared by the group with Vixio GamblingCompliance.
Hoenig also criticized the SPGA for trying to tie its promotions page to the sweepstakes sites the group's members operate in California.
“San Manuel’s site is very different,” Hoenig said. “All the free coins have no value. You can’t cash them out. You can’t get anything for them. It’s completely different. It’s not gambling.”
