The California Assembly voted 63-0 on September 12 to approve AB 831, legislation aimed at banning dual-currency sweepstakes operators. The bill now heads to Governor Gavin Newsom, who has until October 12 to sign or veto it. If he takes no action, the measure becomes law automatically through a “pocket signature.”
The Social Gaming Leadership Alliance (SGLA) voiced strong opposition. Executive Director Jeff Duncan accused lawmakers of ignoring economic realities and handing “monopoly power to tribes.”
Why This Bill Targets Sweepstakes Operations
AB 831 focuses on companies that use dual-currency or prize-awarding sweepstakes models, allowing players to win rewards outside traditional gambling structures. Lawmakers revised the bill three times to clarify it wouldn’t affect promotions run by major brands like McDonald’s or Starbucks. That distinction was critical, as corporate sweepstakes remain a common marketing tool.
Duncan criticized the changes, arguing the legislation unfairly disadvantages sweepstakes operators while exempting large corporations and tribal gaming interests.
What the Legislation Actually Does
The final revision specifies that prohibited operations only apply to companies that “knowingly and intentionally” run dual-currency systems. This ensures promotional campaigns like McDonald’s Monopoly or Starbucks Rewards remain legal while effectively outlawing certain sweepstakes platforms.
Duncan warned the bill would eliminate jobs and restrict opportunities for Californians, calling it “damaging” and “poor policy.”
How This Changes California’s Gaming Landscape
If signed, AB 831 would significantly impact sweepstakes operators in one of the largest U.S. markets. The unanimous 63-0 Assembly vote demonstrates rare political unity, signaling strong momentum for reform despite industry opposition.
Governor Newsom’s decision by October 12 will determine whether California follows other states in cracking down on sweepstakes gaming. While industry groups hope for a veto, the overwhelming support suggests lawmakers see urgent issues with the current system.
