California Assembly Approves AB 831 in Unanimous Committee Decision

Lawmakers in California have taken another step toward passing Assembly Bill 831, a proposal aimed at banning dual-currency sweepstakes operators. The bill has stirred debate, drawing sharp criticism from the Social Gaming Leadership Alliance (SGLA), which argues that the legislation would harm both Tribal partners and the state’s broader economy.

Good to know

• AB 831 targets online sweepstakes games that use dual-currency systems.
• The bill passed 36-0 in the California Senate on September 8.
• It now awaits a final Assembly vote before heading to Governor Gavin Newsom.

Where the Bill Stands

On September 11, the Assembly Governmental Organization Committee approved AB 831 unanimously. Just days earlier, the state Senate had advanced the measure without a single opposing vote. The legislation will now face a full Assembly review before reaching the governor’s desk.

The latest version, revised on September 4, included clarifications on what qualifies as prohibited play. Lawmakers added that the restrictions only apply to companies “knowingly and intentionally” offering sweepstakes with a dual-currency setup. This revision followed questions about how the rules would affect traditional promotions like those run by McDonald’s or Starbucks.

SGLA Pushes Back

The Social Gaming Leadership Alliance responded swiftly after the committee’s approval, calling AB 831 a threat to revenue streams and economic opportunity. According to the group, the measure could erase “hundreds of millions of dollars” in potential new revenue for California.

Jeff Duncan, Executive Director of SGLA, said:

“Today’s hearing exposed the committee’s complete disregard for facts, economic reality and the voices of tens of thousands of Californians all to hand monopoly power to tribes that have already invested hundreds of millions of dollars in Las Vegas and California coastal properties.”

Duncan further noted:

“All the while passage of this bill would deny our Tribal partners the very opportunities the proponents themselves have used. If this damaging bill moves through the Assembly, we hope Gov. Newsom will see it for the poor policy it is and veto AB 831.”

At the center of the dispute is whether online sweepstakes are already unlawful. Supporters of the bill argue they are, but Duncan pushed back:

“As the committee heard today, the entire premise of this bill is false. The proponents have consistently said that online sweepstakes are illegal throughout this process. If that were true, then what is the need for AB 831? The reality is the proponents know this industry is legal. The bill isn’t about clarifying the law. It’s about changing the law to give a few wealthy Tribes exclusivity while shutting down a legal industry.”

What Comes Next

If AB 831 clears the full Assembly, the decision will land with Governor Gavin Newsom. His choice could set the future direction for how online sweepstakes operate in California and whether the industry will remain open to operators outside of Tribal exclusivity.

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