California is moving towards outlawing sweepstakes casinos, as Assembly Bill 831 has successfully cleared the Senate Appropriations Committee. The bill advanced during the committee’s Suspense Day, a fast-paced, vote-only session where lawmakers decide the fate of numerous proposals without debate or public input.
Suspense Day is a distinctive feature of California’s legislative process. During this session, bills placed in the “Suspense File,” including AB 831, are rapidly voted on without discussion.
The committee approved AB 831 unanimously with a 7-0 vote, sending it to the Senate’s Third Reading file, which sets the stage for a full Senate vote.
Introduced by Assemblymember Avelino Valencia, the bill had previously passed the Assembly in a version that did not include the ban on sweepstakes casinos. Since then, it has received unanimous support from both the Senate Governmental Organization Committee and the Senate Public Safety Committee. Following this latest development, the bill now awaits a final vote in the Senate.
Next Step: A Race Against the Clock
Now that AB 831 is in the Third Reading file, it can be brought to the Senate floor for a vote at any time. To pass, it must secure at least 21 votes in the 40-member chamber.
The California Legislature is set to wrap up its 2025 session on September 12. Before that deadline, the Senate must approve the bill and send it back to the Assembly for agreement on the amendments, specifically the newly added provision banning sweepstakes casinos.
If both chambers pass the revised bill, it will head to Governor Gavin Newsom, who has until October 12 to either sign it into law or veto it. Even if the bill doesn’t pass in time, it could still be revived. California’s two-year legislative cycle allows lawmakers to revisit unfinished business when the 2026 session begins.
Why Does California Want To Ban Sweepstakes Casinos?
California’s push to ban sweepstakes casinos stems from a mix of legal, economic, and tribal sovereignty concerns. The proposed legislation, Assembly Bill 831 (AB 831), aims to prohibit online sweepstakes casinos that operate using a “dual currency” model, where players use free credits and paid tokens to simulate casino-style games.
While Tribal casinos in CA are not allowed to operate online, sweepstakes casinos have been building a pool of players. Sweepstakes casinos often operate in a legal gray area, skirting traditional gambling laws by offering prizes through sweepstakes entries rather than direct wagers.
Are Online Casinos Available In California?
Yes, online casinos in California are available from offshore sites operating legally from their country of origin. California gambling laws do not set restrictions on what gambling sites can be accessed online, and federal gambling laws also lack restrictions, outright banning the service.
While technically operating in a gray area, online casinos have been accepting Canadian players since the early 2000s. Sweepstakes casinos have been around for decades, but they became more apparent in the mid-2010s as a way to attract players who often seek online gaming options. Today, CA players have access to both offshore casinos and domestic sweepstakes casinos; however, that could change by the end of the legislative session.