California Revises Anti Sweepstakes Bill Ahead of Hearing

California’s long-debated Assembly Bill 831 continues to shift as lawmakers attempt to balance consumer protections with business promotions. The Senate has now revised the anti-sweepstakes measure once again, adding language to clarify that popular marketing promotions from companies like McDonald’s or Starbucks will not be swept into the ban. A second hearing is now set for September 3.

Good to Know

• AB 831 targets online sweepstakes operators using dual-currency systems, not standard marketing promotions.
• The bill now explicitly exempts state lottery products and licensed gambling operators.
• Supporters include CNIGA and the Yuhaaviatam of San Manuel Nation, while opponents such as VGW remain strongly against it.

The latest changes to AB 831 come after concerns spread across social media that charitable or brand promotions could be unintentionally outlawed. The Social and Promotional Games Association pointed to a Make-A-Wish Foundation campaign as a potential example that might have been considered illegal under the bill’s earlier language.

In response, lawmakers revised the text to draw a clearer line. They wrote that promotions conducted “on a limited and occasional basis as an advertising and marketing tool” remain lawful, provided they are tied to genuine sales of goods or services and are not meant to create ongoing gambling enterprises. That clarification effectively shields standard fast-food sweepstakes or coffee chain giveaways.

The bill also includes assurances that the California State Lottery will not be affected and that licensed gambling operators under the Gambling Control Act can continue offering their existing products.

Perhaps the most crucial addition is a new section stating that prohibited sweepstakes activity only applies to businesses “knowingly and intentionally” running online sweepstakes games that rely on dual-currency systems. These are the kinds of structures commonly used by companies like Virtual Gaming Worlds, which has been vocal in its opposition.

Support for AB 831 has come from tribal groups including the California Nations Indian Gaming Association and the Yuhaaviatam of San Manuel Nation, who argue the measure is necessary to protect the integrity of regulated gaming. On the other side, VGW and the Kletsel Dehe Wintun Nation of the Cortina Rancheria have pushed back, warning that the bill unfairly targets legitimate operators.

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