Gov. Gavin Newsom really gave it some thought, and while he could have remained indifferent, and AB 831 would have become a law anyway, he chose to act confidently. Gov. Newsom has approved and signed the controversial bill over the weekend.
Gav. Newsom finally nods agreement to contentious sweepstakes ban
On Saturday, October 11, the governor’s office announced that Gov. Newsom had indeed approved AB 831, which will ban sweepstakes casinos, effective January 1, 2026, rendering such companies and operators illegal.
This is the latest push against the sector, which has come under threat from traditional operators. They accuse sweepstakes of exploiting the model to offer online casino gaming without going through the same rigorous licensing processes, as well as paying taxes, and the fact that many states do not offer online casinos to begin with.
The bill was backed by the California Nations Indian Gaming Association (CNIGA), which has been firmly in the sweepstakes sector for the above reasons.
The Social Gaming Leadership Alliance (SGLA) has responded to this overnight development and expressed its frustration with the decision. SGLA Executive Director Jeff Duncan said:
"Voters, players who love online social games, California tribes, and online social games operators all made their position clear: they didn’t want a ban on this popular, safe form of entertainment. We hoped that Governor Newsom would see past the anti-competitive efforts of the powerful, well-funded tribes behind this bill and veto AB 831, but he chose the easy, short-sighted path and turned his back on choice, innovation, and economic gains."
California is hardly the only place where bans are rolling in
Duncan and the SGLA have long maintained that while the sector was due to a new draft regulation, banning the industry outright would impact the people who enjoy the sector, as well as affect jobs and the state’s economy and ability to innovate.
Signing the bill is a significant step back for sweepstakes operators in the United States and puts into question the model’s future. However, most sweepstakes operators remain confident in the sector’s resilience despite facing pressure in Louisiana, New York, and elsewhere.
California joins Montana, Connecticut, and New Jersey in banning sweepstakes operators, significantly reducing the sector’s reach and breadth, nevertheless.
