California Keeps Sweepstakes Casino Ban Bill in Suspense

California lawmakers are holding off on a final decision about whether sweepstakes casinos will be banned in the state, leaving both supporters and critics waiting a little longer.

Good to know

• Assembly Bill 831 is backed by major tribal groups, including the Yuhaaviatam of San Manuel Nation.
• Opponents, including the Kletsel Economic Development Authority, argue the bill harms isolated tribes that rely on digital platforms.
• New Jersey recently passed similar anti-sweeps legislation, adding pressure on California to act.

The Senate Appropriations Committee placed A.B. 831 into its “Suspense File” on Monday. That’s the holding area for bills expected to cost the state more than $50,000 from the general fund or $150,000 from a special fund. A rapid-fire hearing scheduled for Aug. 25 will determine if the bill advances to the Senate floor. The deadline to report the bill out is Aug. 29.

If enacted, A.B. 831 would make it a misdemeanor to operate sweepstakes casinos using a “dual currency” model. Violations could bring fines of $1,000 to $25,000 and up to a year in jail.

The measure was reshaped into an anti-sweeps proposal in June, cleared the governmental organization committee unanimously in July, and later passed the public safety committee with amendments. Lawmakers say the effort is part of a broader push to clarify gambling laws in California, where sports betting remains illegal.

Supporters argue the bill protects the state’s long-standing system of tribal gaming. “Tribal gaming exclusivity, granted by the voters of California, must be honored,” wrote the Yuhaaviatam of San Manuel Nation. The California Nations Indian Gaming Association also backs the bill.

Opponents, however, stress that not all tribes are aligned. The Kletsel Economic Development Authority, partnered with sweeps operator VGW, urged lawmakers to reconsider.  CEO Eric Wright said:

“This bill lacks unanimous support among California tribes, has advanced without meaningful consultation with many of us, and threatens our inherent right to operate legitimate revenue streams.”

Wright further noted that digital platforms often fund health care, education, housing, and food security for remote tribes.

For now, the state’s decision remains in suspense.

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