Chavdar Vasilev is a gambling news writer with several years of experience in the iGaming industry. He started creating promotional content but soon found he loved reporting on the industry itself. Since then, he’s delivered...
Read Full BioA bill banning sweepstakes casinos in California has passed its first hurdle as the Senate Governmental Organization Committee unanimously advanced the proposal on July 8
With a 15-0 vote, the committee passed AB 831 and advanced it to the Public Safety Committee.
The committee has a scheduled hearing on July 15. Should the second committee approve the bill, it would move to a Senate floor vote. It will then return to the Assembly, which passed it in May, if further amendments are made.
Tribes and Sports Betting Operators Urge Ban
During the roughly 45-minute session chaired by Senator Steve Padilla, representatives from the Native Tribes, including the San Manuel Nation and the California Nations Indian Gaming Association (CNIGA), argued for closing loopholes that allow unregulated sweepstakes casinos to operate in the state.
Representatives from the Sports Betting Alliance (SBA), a trade group representing sports betting operators, echoed the concerns of the tribes.
The SBA emphasized that these platforms undermine tribal gaming exclusivity, threaten regulated markets, and lack proper consumer protections.
VGW, SPGA Call for Regulation Instead of Prohibition
Opponents, including VGW and the Social Gaming Leadership Alliance (SGLA), contested that the bill is overly broad, rushed, and risks criminalizing players and legitimate businesses.
In its opposition argument included in the committee’s bill analysis, VGW, the parent company of Chumba Casino, LuckyLand Slots, and Global Poker, asks lawmakers to scrap the “rushed, gut-and-amend legislation.” The company says they should instead focus on regulation.
VGW states that it aims to collaborate with lawmakers to establish a regulatory framework that will protect consumers while generating a new revenue stream for the state. The operator notes:
“The economic opportunity is significant. Based on industry projections by Eilers & Krejcik, California could generate annual revenue of $149 million through sale tax alone. Currently, there is no method for us to pay sales tax in California because ours is a digital product, but this is something we would be happy to do under an appropriate framework. We are also open to other potential sensible taxation frameworks and/or revenue stream to benefit the people of California.”
Meanwhile, the Social and Promotional Games Association (SPGA) called AB 831 “too vague, too rushed, and too risky.” The SPGA is a trade group representing the interests of the sweepstakes casino industry and advocating for responsible social casino gaming.
The association warns that the bill threatens free speech and legitimate commerce. It exposes app developers, influencers, and advertisers to harsh penalties simply for “supporting” these games.
The SPGA stresses that no evidence of consumer harm has been presented. It added that nearly 20,000 Californians have spoken in favor of sweepstakes casinos. Meanwhile, the bill would damage lawful, popular entertainment and major brand promotions.
Like VGW, SPGA asks lawmakers to reject AB 831 and instead create a regulatory framework.
Lawmakers Express Concerns Over Process and Scope
While the sweepstakes casino ban bill, introduced by Assemblymember Avelino Valencia at the end of June, passed unanimously, several lawmakers raised concerns about the process’s transparency, legal reach, and potential unintended consequences.
Senators also questioned the urgency surrounding the bill, especially as the sweepstakes provisions were inserted into an unrelated tribal gaming bill, a “gut-and-amend” approach.
The legislation targets operators, suppliers, payment processors, and celebrity endorsers. One such endorser is Ryan Seacrest, who is facing a lawsuit over his involvement with Chumba. However, there was confusion about whether it also targeted users of sweepstakes casinos.
Valencia stated that there will likely need to be a change in the language to clarify that it doesn’t include users. Additionally, he agreed to remove references to cardrooms from the bill to secure neutrality from that sector. The Assemblymember clarifies that the focus remains on sweepstakes operators and their support networks.
Aside from sweepstakes casinos, cardrooms, and daily fantasy sports (DFS) operators are also under threat in California. Attorney General Rob Bonta has announced sweeping changes to cardroom regulations, although his proposals have faced significant backlash. He also recently issued a legal opinion declaring that DFS is illegal in California.
These overlapping efforts reflect a broader crackdown on unregulated and gray-area gaming activities across California.
