The California State Senate has unanimously voted through legislation designed to outlaw the operation of sweepstakes casinos, and sportsbooks.
AB 831, introduced by assembly member Avelino Valencia, passed through the Senate with a vote of 36-0.
The bill will now head back to the California State Assembly for approval.
If approved, it will be sent to California Governor Gavin Newsom to be signed into law.
The proposed legislation would make it illegal for “any person, entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within the state”.
Those in violation of the legislation would be subject to a fine ranging from $1,000 to $25,000, or possibly a one-year prison sentence in a county jail.
Since its initial introduction in July, the bill has been amended to exclude commercial entities.
The updated AB 831 now states that the legislation does not apply to “ancillary or publicly available services, platforms, or infrastructure providers that may be unknowingly or unintentionally used in connection with those online sweepstakes games provided they are not acting with the intent to further those online sweepstakes games.”
An additional amendment has been made to specify that intent is necessary with regard to sweepstakes operation, clarifying that it applies to “persons or entities who knowingly and intentionally engage in, promote, or facilitate online sweepstakes games that utilise a dual-currency system.”
Text within the bill states: “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.”
AB 831 has received the support of the state’s tribal gaming entities, with the Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA) co-sponsoring the legislation.
The battle against the sweepstakes sector within the US has been ongoing this year.
Both Connecticut and Montana have signed legislation banning sweepstakes operation into law, with both respective bills coming into effect in October 2025.
In June, New York Attorney General Letitia James issued cease-and-desist orders to 26 sweepstakes operators.
Meanwhile, Louisiana Governor Jeff Landry opted against signing anti-sweepstake legislation into law in the Bayou State.
The post California Senate passes anti-sweepstakes legislation first appeared on EGR Intel.
AB 831 voted through unanimously 36-0 following amendments, as it awaits approval from the State Assembly
The post California Senate passes anti-sweepstakes legislation first appeared on EGR Intel.