California's AB 831 Passes In the Assembly, Heads to Gov. Desk

On Friday, Sept. 12, California's anti-sweepstakes casino legislation, AB 831, which will ban the dual-currency model of Gold Coins and Sweeps Coins, has passed in the Assembly with a 63-0 vote. 

This was the final hurdle for the bill, and now, it's headed to Governor Gavin Newsom's desk. 

He has 12 days, excluding Sundays, to sign it, veto it, or do nothing. 

If he does nothing, it'll still pass as if he did sign it. 

If signed, the bill will take effect on Jan. 1, 2026. 

The Proponents of the Bill

Since this bill was filed earlier this year, certain tribes, such as the Yuhaaviatam of the San Manuel Nation, backed this bill, citing that it infringed on tribes' sovereignty and their exclusivity regarding gambling in the state. 

Additionally, social casino platforms like Light & Wonder were also in favor of it. Social casinos are different than sweepstakes casinos as there's no redemption process of Sweeps Coins at social casinos. It's mainly meant to be "for fun."

On an investment call earlier this year, Matthew Wilson, the CEO of Light & Wonder, said that the rise in sweepstakes casinos caused some decline in revenue for that part of its business, which is known as SciPlay. 

It's also worth noting that the Yuhaaviatam of the San Manuel Nation has its own social casino, Play.Yamaava. 

Opponents of the Bill

While there were opponents throughout the lifespan of the bill, there were four tribes that came on later into the process: Big Lagoon Rancheria, Sherwood Valley Band of Pomo Indians, Kletsel Dehe Wintun Nation, and Mechoopda Indian Tribe of Chico Rancheria. 

The tribes wrote letters to California lawmakers, and members of some of the tribes appeared and protested outside the California State Capitol on Sept. 8. 

Additionally, there were two advocacy groups, the Social Gaming Leadership Alliance and the Social and Promotional Games Association. 

Here's what the SGLA's executive director, Jeff Duncan, had to say about the bill passing in the Assembly: 

“It is incredibly disappointing that the California Assembly decided to pass AB 831. Beyond the fact that this bill would worsen economic disparities among California tribes, put California to the back of the line in terms of digital innovation in this space, and take away a popular form of entertainment for residents, it will immediately strip $1 billion out of the state’s economy.

“We implore Governor Newsom to veto this bill and instead open the door for online social games to support economically disadvantaged tribal nations and the state’s economy while positioning California as a leader in next-generation gaming technology.”

Lastly, the American Civil Liberties Union in California and a few cities with notable cardrooms came out against the bill as they were unsure what ramifications the bill would have on them. 

What to Expect

While it's not known for sure, the growing sentiment is that Newsom is expected to sign the bill. 

This bill received ample bipartisan support. No "no" votes were cast against it throughout the various channels. Thus, it's likely Newsom will sign it into law. 

Again, if Newsom does not veto the law, it will take effect on Jan. 1, 2026, and you can expect numerous sweepstakes casinos to flee the state relatively quickly, like High 5 Casino did earlier this month.