California Senate Unanimously Supports Sweepstakes Prohibition Bill

• The California Senate on Monday unanimously approved a bill to prohibit dual-currency sweepstakes games in the state
• The bill was amended last week to exclude traditional sweepstakes games or traditional state lottery games from the prohibition
• Legislation now heads to the California Assembly

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The California Senate gave a resounding “yes” to a bill that will prohibit dual-currency sweepstakes games in the Golden State.

The Senate approved AB 831, a bill to ban dual-currency sweepstakes games, by a unanimous 36-0 vote. The bill was moved to the Senate by the Senate Committee on Appropriations in late August.

Assemblymember Avelino Valencia’s (D-68) bill prohibits dual-currency sweepstakes contests resembling casino and sports betting games in the state. It must now head back to the Assembly after being amended by the Senate on third reading to exclude several contest types from the prohibition.

Senate Amends Bill to Make Prohibition More Clear

The California Senate amended the bill on Sept. 3 to specify the legislation will not criminalize state lottery games or traditional sweepstakes promotions. The approved amendment from the Senate is as follows:

“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.”

Detractors of the bill said the potential new law is restrictive to already established sweepstakes games from companies such as Starbucks and Microsoft. The Senate-approved amendment aims to make the bill more clear that it will not prohibit traditional sweepstakes promotions held on a “limited or controlled basis.”

News: California bill to prohibit online sweepstakes casinos (AB 831) has been amended by CA Senate on 3rd reading to specify that it would not criminalize state lottery games or traditional sweepstakes promotions conducted on "limited and occasional" basis. pic.twitter.com/H8p8IsedWY

— Daniel Wallach (@WALLACHLEGAL) September 4, 2025

New Fines for Sweepstakes

Valencia’s bill, originally dealing with tribal state gaming compacts, was overhauled in late June to make it unlawful for any person or entity to operate, conduct, or promote a dual-currency online sweepstakes game that mimics casino games or sports betting.

In addition to prohibiting dual-currency sweepstakes games, the bill outlines potential fines and punishments for those who offer the games.

“The bill would make a person who violates these provisions guilty of a misdemeanor punishable by a fine not less than $1,000 nor more than $25,000, or by imprisonment in the county jail not exceeding one year, or by both the fine and imprisonment,” according to the legislation.

The bill also outlines the type of sweepstakes games that will be prohibited in California. Games that allow a person to purchase “sweepstakes coins” or other types of sweepstakes currency that allows the user to win a prize, award, cash, or cash equivalents will be prohibited.

Additionally, any games that simulate gambling or play a gambling-themed game, such as slot machines, video poker, casino-style table games such as blackjack, roulette, craps, and poker, will be prohibited.

Several California Tribes Speak Out on Prohibition

While the legislation is backed by the California Nations Indian Gaming Association (CNIGA), several tribes have spoken out against the bill as it has been considered by the California legislature.

The Sherwood Valley Band of Pomo Indians, Big Lagoon Rancheria, and Kletsel Dehe Wintun Nation Tribe all submitted letters of opposition during the bill’s prior committee hearings.

“For communities long overlooked and geographically isolated, digital commerce is not a luxury – it is a lifeline,” said Eric Wright, Tribal Administrator of Kletsel Dehe Wintun Nation and CEO of Kletsel Economic Development Authority, the tribe’s economic development arm, said in a press release. “AB 831 would sever that lifeline. Tribal members gather at the State Capitol today to ask lawmakers to stand for tribal equity, sovereignty, and economic justice by voting NO on AB 831.”