California’s state Senate voted 36-0 to approve Assembly Bill 831, which targets sweepstakes and daily fantasy sports operators across the state. Assemblyman Avellino Valencia has been driving the legislation and recently made amendments to address critics’ concerns.
The bill has split California’s tribal gaming community, with smaller tribes worried it gives too much power to larger casino operators. In a historic move, VGW partnered with the Kletsel Dehe Wintun Nation to oppose the bill together, marking the first time a sweepstakes company has teamed up with a tribal nation.
Why This Bill Keeps Moving Forward
California officials argue that current sweepstakes operations create legal gray areas. Attorney General Rob Bonta called daily fantasy sports a “violation of the law” earlier this year, though Governor Newsom disagrees with banning DFS entirely.
Valencia’s amendments clarified that players will not face punishment and explicitly protected state lottery games and standard promotional sweepstakes. Since these changes, the Senate has voted unanimously in favor of the bill.
What AB 831 Actually Does
The legislation would ban dual-currency sweepstakes operators in California—companies that let players buy virtual coins and win real prizes. Daily fantasy sports would also be prohibited despite their popularity among California players.
The bill now returns to the Assembly’s Governmental Organisation Committee. If approved, it moves to the full Assembly for a vote. A majority there would send AB 831 to Governor Newsom’s desk for signature or veto.
How This Plays Out Over the Next Month
Time is tight: the Assembly must vote by September 12 before the mid-session break. If they miss this deadline, the bill dies for the session. If it passes, Governor Newsom has until October 12 to sign or veto.
The sweepstakes industry is closely watching, as companies like VGW have invested heavily in California players. Tribal casinos remain divided, with some wanting sweepstakes eliminated to protect market share while others worry the bill favors larger tribes.
The unanimous Senate vote indicates growing momentum, but the true test will come when Assembly members face pressure from both sides in the coming days.
