Deadline Looms for Gov. Newsom, California Sweepstakes Prohibition Bill

• A dual-currency sweepstakes prohibition bill has been sitting on Gov. Gavin Newsom’s (D) desk since late September
• Gov. Newsom has until midnight Monday to sign the bill, not sign the bill and allow it to become law, or veto the bill
• The bill will prohibit all dual-currency sweepstakes games in the state

A deadline is looming for California Gov. Gavin Newsom (D) and a dual-currency sweepstakes prohibition bill.

Both the California Assembly and Senate unanimously approved AB 831 over the summer, sending the dual-currency sweepstakes prohibition bill to Gov. Newsom on Sept. 24, 2025. Assemblymember Avelino Valencia’s (D-68) bill prohibits dual-currency sweepstakes contests resembling casino and sports betting games in the state.

However, Newsom has yet to officially act on the legislation, and must decide to either sign the document, not sign the document, or veto the document by midnight Monday, Oct. 13.

No Signs of Action Yet

Gov. Newsom has yet to acknowledge what he will do with AB 831. He can either take three possible courses of action; signing the bill into law, taking no action on the bill and allowing it to become law, or vetoing the bill.

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.

The bill also 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.

If the legislation is signed into law, 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.

SGLA Urges Veto

The Social Gaming Leadership Alliance (SGLA) has urged Gov. Newsom to reconsider the approved legislation and veto the document.

“It is incredibly disappointing that the California Assembly decided to pass AB 831. Beyond the fact that this bill would worsen economic disparities among California tribes, put California to the back of the line in terms of digital innovation in this space, and take away a popular form of entertainment for residents, it will immediately strip $1 billion out of the state’s economy,” said Jeff Duncan, Executive Director of SGLA.

According to the SGLA, the bill would eliminate $1 billion in annual economic impact to California, causing the state to miss out on at least $200 million to $300 million annual that regulation and taxation of the industry brings.