A bill to ban sweepstakes gaming was approved by the California Senate Appropriations Committee on Friday, setting up a vote by the State Senate in the coming weeks.
Assembly Bill 831, the latest battle in California's ongoing gambling Cold War, intends to "protect Californians from unregulated online gambling by prohibiting online sweepstakes games that introduce a "dual currency" model to mimic casino-style wagering," according to a June press release from Avelino Valencia (D-Anaheim), the Assemblymember who sponsored an amended version of the bill that passed the California State Assembly early in 2025.
'Dual-currency' model challenged
Sweepstakes sites like Global Poker and ClubWPT Gold use virtual currency for casino-style gaming and poker, which can be exchanged for cash and other prizes. Loopholes like 'No Purchase Necessary' allow players to send in for free virtual currency, setting up a sweepstakes model that circumvents the state's gambling regulations.
“We cannot look the other way while these platforms exploit legal grey areas,” Assemblymember Valencia said this summer. “These operations undermine the voter-approved framework that affirms Tribal governments’ sovereign right to conduct gaming in California. AB 831 strengthens that framework and ensures gaming in California remains fair and accountable.”
Proponents of the bill include the Yugaaviatam of San Manuel Nation and the California Nations Indian Gaming Association. California tribes have negotiated compacts with the state, allowing gambling on tribal lands with certain limitations. The compacts have allowed tribal casinos to operate throughout California, but no form of online poker is currently legal in the state.
Smaller tribes push back
Opponents of the bill, which include some smaller tribes in the state, argue that it favors larger gaming companies and creates an unfair competitive environment. Smaller tribes could potentially partner with sweepstakes gaming sites, opening the door for the legal operation of online poker in California.
The bill passed through the California State Senate Appropriations Committee with a 7-0 vote and no debate. It now moves to the California State Senate, where a vote will be held in the coming weeks. If passed, AB 831 will head back to the Assembly for re-approval before the legislature wraps up its session in mid-October, since it has changed significantly since they voted in favor.
