Various Groups Rally with SPGA in Opposition to California's AB 831 Legislature
California Assembly Bill 831 (AB 831) is currently making waves in the state's legislature, aiming to **ban online sweepstakes casinos** that simulate gambling. The bill intends to prohibit operations, promotions, and facilitation of such sweepstakes that use dual-currency systems enabling players to convert virtual winnings into cash or prizes.
### Current Status As of July 2025, AB 831 has passed several key committees and legislative stages. It was approved unanimously by the Senate Governmental Organization Committee on July 8, 2025, and passed with a 6-0 vote in the Senate Public Safety Committee in mid-July 2025. The bill is now expected to be reviewed by the Senate Appropriations Committee. If not finalized by September 12, 2025, it may continue into 2026.
### Opposition and Criticism Several groups, including the American Civil Liberties Union (ACLU) and the Association of National Advertisers (ANA), have voiced opposition to AB 831. Critics argue the bill's wording is too vague, potentially leading to unintended consequences and insufficient clarity on what constitutes illegal sweepstakes activity.
The ACLU and advertising industry groups worry that the law could infringe on free speech rights related to marketing promotions that use sweepstakes elements, as well as unduly penalize legitimate advertising practices. Opponents also contend that the legislation might negatively affect companies that use sweepstakes as part of lawful promotions and restrict consumer choice without clear evidence of harm.
### Background Context The bill comes amid broader legal debates in California about online gambling and daily fantasy sports. Notably, the California Attorney General recently ruled daily fantasy sports illegal under state law, intensifying scrutiny of gambling-like activities.
The popularity of prediction markets has led to disagreements between tribal authorities and commercial sports betting industry stakeholders. The American Civil Liberties Union (ACLU) and the Association of National Advertisers have joined the Social & Promotional Games Association (SPGA) in opposing AB 831.
If passed, AB 831 would ban sweepstakes gaming in California, affecting the local sweeps industry. The Association of National Advertisers includes Fortune 500 companies such as Google and NBCUniversal. The SPGA states that the bill's broad language would create significant legal uncertainties.
The California Nations Indian Gaming Association (CNIGA) supports the bill, viewing it as a way to close a legal loophole exploited by online sweepstakes casinos to operate gambling-like services outside tribal and state regulatory frameworks.
As the debate continues, consumer advocates and business leaders are opposing the bill in its current form, calling for significant revisions to avoid uncertainty and prevent unintended consequences. The bill's future remains uncertain as it navigates through the California legislature.
- The California Assembly Bill 831 (AB 831) targets not only online sweepstakes casinos, but it also raises concerns for companies involved in sports betting, fantasy sports, and general-news advertising, as its broad language could impact their marketing promotions.
- Interestingly, the bill's impact extends beyond the local sweeps industry, reaching fortune 500 companies such as Google and NBCUniversal who are members of the Association of National Advertisers.
- The bill's opponents, including the ACLU and advertising industry groups, argue that the legislation's vague wording could lead to unintended consequences, potentially infringing on free speech rights and unduly penalizing legitimate advertising practices, and negatively affecting businesses in the sports betting, fantasy sports, and finance sectors.
