California Senate revises AB 831 to restrict online sweepstakes casinos

The California Senate has tweaked Assembly Bill 831 (AB 831), a proposal that aims to shut down online sweepstakes casinos in the state. Lawmakers stressed that the bill isn’t meant to interfere with state lottery games or the kind of sweepstakes promotions that pop up every so often.

The updated language makes it clear: “(a) It is unlawful for any person or entity to operate, conduct, or offer an online sweepstakes game in this state.”

News: California bill to prohibit online sweepstakes casinos (AB 831) has been amended by CA Senate on 3rd reading to specify that it would not criminalize state lottery games or traditional sweepstakes promotions conducted on "limited and occasional" basis. pic.twitter.com/H8p8IsedWY

— Daniel Wallach (@WALLACHLEGAL) September 4, 2025

It also declares: “(b) It is unlawful for any entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly and willfully support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within this state.”

Some of the Senate’s tweaks were more about wording than substance. For example, “gambling-themed games” got trimmed down to just “gambling,” “casino-style table games” was simplified to “table games,” and the phrase “and willfully” was added after “knowingly.”

The bill also explains that these rules will not interfere with legal gambling operations such as casinos licensed under the Gambling Control Act or with the California State Lottery.

It goes on to clarify: “The bill would specify that these provisions do not make unlawful game promotions or sweepstakes conducted by for-profit commercial entities on a limited and occasional basis as an advertising and marketing tool that are incidental to substantial bona fide sales of consumer products or services and that are not intended to provide a vehicle for the establishment of ongoing gambling or gaming.”

Following these updates, the measure has progressed to a second Senate reading.

AB 831 not expected to outlaw traditional sweepstakes promotions in California

Both of those arguments were specious. The Starbucks-type promotions were already protected by Section 17539.1's existing "limited and occasional" language. And state lottery games could not be criminalized since they are specifically authorized by the CA Constitution and CA law.

— Daniel Wallach (@WALLACHLEGAL) September 4, 2025

Sports betting attorney Daniel Wallach said the updated language resolves misconceptions about the bill’s reach. “This language addresses the false contentions that AB 831 would outlaw traditional sweepstakes promotions like those offered by Marriott, Microsoft and Starbucks, as well as the California Lottery’s ‘2nd Chance Program’ online games,” he wrote.

He continued: “Both of those arguments were specious. The Starbucks-type promotions were already protected by Section 17539.1’s existing ‘limited and occasional’ language. And state lottery games could not be criminalized since they are specifically authorized by the CA Constitution and CA law.”

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