California Senate Moves Toward Ban on Sweepstakes Casinos

The California Senate has voted to move forward with a bill that would ban sweepstakes casinos and daily fantasy sports. Lawmakers supported the measure 36-0, sending it to the Assembly for the next stage. If it passes there, Governor Gavin Newsom is expected to sign it.

The bill, AB 831, targets online companies that run casino-style games under sweepstakes rules. It specifies that contests run by charities or brands for promotions will not be affected. The goal is to cut down on gambling that looks like casinos but is not licensed by the state.

How Other States Handle Online Gambling

California is not the first state to face this debate. Some have taken a different path. For example, real money online casinos are not legal in Florida, but players still have options. Many turn to sweepstakes-style platforms that use virtual coins, or to offshore sites that accept Florida residents. Florida online casinos often offer this mix of sweepstakes models and real money casinos, with access to popular games like blackjack, roulette, and themed slots.

Several other states, such as Pennsylvania, Delaware, and New Jersey, have fully licensed online casinos and collect millions in monthly tax revenue. Lawmakers in California are watching these examples closely while also noting how Florida players continue to find alternatives.

Why Tribes Back the Bill

Tribal casinos play a major role in California’s gambling industry. Federal law gives them the right to run casinos, which has provided funding for housing, health, and education in their communities. For larger tribes, AB 831 is a way to protect this system. They argue that sweepstakes casinos are unfair competition and draw money away from regulated venues.

Not all tribes agree, though. Smaller groups without big casino resorts often see sweepstakes and fantasy sports as a chance to add income. This split has caused some friction within groups that normally stand together in gambling debates.

The economic weight is clear. Some tribes depend on casino profits for a major share of their community budgets. Larger tribes believe AB 831 keeps that funding stream stable. Smaller tribes counter that the law could close off one of the few growth options they had.

Opposition from the Industry and Players

The Social and Promotional Games Association and the Social Gaming Leadership Alliance are among the strongest critics of AB 831. They argue sweepstakes casinos and fantasy sports are part of everyday entertainment. Removing them, they say, would only push players toward offshore websites where the state has no control.

Fantasy sports, especially, play a big role for many fans, from office pools to national leagues. Banning them in California would separate the state from a pastime that millions of Americans enjoy. The demand for online play has grown, so shutting down digital platforms may create more problems than it solves.

Some industry voices also argue that the ban will not change consumer habits. They believe players will simply find new ways to access online games, whether through offshore websites or mobile apps. If that happens, California could miss out on taxes while still dealing with the social costs.

Voices from Tribal Leaders

Tribal leaders expressed confidence after the Senate’s unanimous vote on AB 831. Many see the bill as a strong step toward protecting their existing casino rights and limiting competition. They believe the measure has enough bipartisan backing to pass the Assembly and reach the Governor’s desk without major changes.

Industry lobbyists are still working to push back, but tribal representatives suggest that support in Sacramento is firmly on their side. Some leaders also point out that sweepstakes operators have tried to drive a wedge between larger and smaller tribes, though so far these efforts have not slowed the progress of the bill.

Legal Cases Already Underway

The state is not waiting for the new law to take action. Attorney General Rob Bonta has filed a civil case against Stake.us and several of its partners, accusing them of breaking state law. This shows that enforcement is already happening.

Lawmakers made sure the bill does not affect normal contests run by charities or well-known brands. That avoids problems for companies that use sweepstakes as part of marketing or fundraising. The focus is squarely on casino-style sweepstakes and daily fantasy sports.

The lawsuit also highlights how old California gambling laws are. They were written before online sweepstakes were common, leaving courts to decide how those laws apply. AB 831 tries to settle that question by clearly banning casino-style sweepstakes. Future court cases will test how far the ban reaches, especially for companies that already have customers in the state.

Waiting on the Governor

Governor Newsom has not said what he will do, but many expect him to sign the bill. He has been careful on gambling matters, often trying to balance tribal rights, voter views, and the state’s budget needs. While Attorney General Bonta called daily fantasy sports a form of betting, the Governor’s office did not fully agree at the time. His final decision may depend on whether the bill is seen as keeping control without upsetting too many groups.

If he signs, the move will keep gambling tied to tribal casinos for now. That would likely delay serious talks about licensed online casinos until at least the next legislative cycle. In the meantime, players will keep looking for workarounds online, while lawmakers decide if and when to tackle full regulation.

Larger Debate on Online Casinos

The push to ban sweepstakes is only one part of a bigger question: should California create a legal market for online casinos? The state is one of the biggest untapped markets in the country. Industry supporters say regulation would bring in tax money, provide consumer protections, and help stop players from using offshore sites.

Opponents warn that allowing online casinos could hurt tribal venues and change gambling culture in ways that are hard to predict. They also raise concerns about social costs. Supporters counter that a legal system with rules and safeguards would be safer than the current mix of offshore and sweepstakes play.

This debate is not going away. Lawmakers, tribes, and industry groups are already looking ahead to ballot measures or new bills that could set the path for legal online casinos. Californians may see the issue on their ballots within the next few years if lawmakers cannot reach an agreement in Sacramento.

What Comes Next

AB 831 now heads to the Assembly, where it is expected to pass. Industry groups and smaller tribes may still push for changes, but the odds are against them. If Governor Newsom signs, sweepstakes casinos and daily fantasy sports will no longer have a place in California.

For players, that means turning to other states or offshore sites while waiting to see if California will someday allow legal online casinos. Additionally, it means the bigger fight over how to handle online gambling has only just begun for lawmakers. The outcome will shape how Californians play, spend, and interact with digital gambling for years to come.