California is progressing towards prohibiting sweepstakes casinos with the recent passage of Assembly Bill 831 (AB 831) from the Senate Appropriations Committee on August 29. This occurred during the committee’s Suspense Day hearing, a crucial session for swiftly resolving numerous bills.
On Suspense Day, part of California’s budgeting procedure, the committee does not engage in debates or public discussions, instead, they quickly vote on bills listed in a “Suspense File,” including AB 831.
With a unanimous 7-0 vote, the committee has advanced the bill prohibiting sweepstakes casinos into the Senate’s Third Reading file, setting it up for a floor vote.
Spearheaded by Assemblymember Avelino Valencia, the bill has already cleared the Assembly despite its original version not addressing the sweepstakes casino ban. It has also passed through the Senate Governmental Organization Committee and the Senate Public Safety Committee without opposition.
Next Steps: Senate Vote Approaches
Now included in the Third Reading file, AB 831 is ready for a Senate vote anytime. To succeed, it requires a simple majority of 21 votes from the 40-member chamber.
The proposal is up against a looming deadline, as the California Legislature’s 2025 session ends on September 12. The Senate must pass it and send it back to the House for approval before this date, since the bill was amended to include the ban on sweepstakes casinos.
Rising Opposition Yet Proactive Progress
Throughout its legislative journey, AB 831 has attracted significant opposition, particularly from VGW, which operates Chumba Casino, LuckyLand Slots, and Global Poker. In July, the Social & Promotional Games Association, of which VGW is a founding member, announced certain prominent organizations, including the American Civil Liberties Union and the Association of National Advertisers, have opposed the bill.
Moreover, VGW has sought support from California tribes. Recently, it entered a significant partnership with the Kletsel Dehe Wintun Nation of the Cortina Rancheria, the first California tribe to oppose the ban, which was soon followed by the Big Lagoon Rancheria and the Sherwood Valley Rancheria of Pomo Indians, all warning that the ban infringes on tribal sovereignty and economic growth.
Nevertheless, a coalition of over 50 California tribes supports the ban, indicating a division in tribal perspectives. Other opponents include Publishers Clearing House, now under ARB Interactive, an operator of a sweepstakes casino.
Conclusion: California’s Gambling Discussions at a Crossroads
AB 831 extends beyond the sweepstakes casino ban, reflecting a wider debate surrounding gambling in California. The state has consistently rejected sports betting initiatives, leaving tribal gaming interests as the preeminent influence. California tribes argue that their exclusive rights to gambling are threatened by unregulated forms such as sweepstakes casinos.
Given California’s significant size and economic potential, the outcome of the sweepstakes casino ban could impact gambling legislation in other states, whether it leads to restrictions or increased regulation. The upcoming Senate vote, followed by the Assembly’s decision, will determine if California becomes the sixth state to institute a ban on sweepstakes casinos in 2025 or if the discourse will carry into 2026.
Feel free to adapt any part as needed!
