AB 831 gains traction in California as SGLA warns of billion-dollar industry threat

• The California Assembly Governmental Organization Committee unanimously supported AB 831, which would ban sweepstakes gaming platforms
• The Social Gaming Leadership Alliance claims the bill threatens $1 billion in economic activity and potential revenue streams
• SGLA executive director accuses lawmakers of favouring tribal monopolies over fair competition and consumer choice

California’s controversial AB 831 bill has gained significant momentum after receiving unanimous backing from the Assembly Governmental Organization Committee this week. The legislation, which seeks to eliminate sweepstakes gaming operations across the state, now heads to the State Assembly floor for a full hearing.

The bill specifically targets dual-currency gaming platforms that have operated in legal grey areas by using sweepstakes models to avoid traditional gambling regulations. These operators have long maintained their legitimacy by leveraging specific legal frameworks that distinguish their services from conventional gambling offerings.

The Social Gaming Leadership Alliance has voiced strong opposition to the advancing legislation. The trade organisation argues that AB 831 would destroy approximately $1 billion in direct and indirect economic activity whilst preventing California from accessing hundreds of millions in potential new tax revenue.

Jeff Duncan, executive director of the SGLA and former Congressman, expressed frustration with the legislative process.

“The proponents have consistently said that online sweepstakes are illegal throughout this process. If that were true, then what is the need for AB 831? The reality is the proponents know this industry is legal. The bill isn’t about clarifying the law. It’s about changing the law to give a few wealthy tribes exclusivity while shutting down a legal industry,” Duncan said.

The SGLA chief criticised what he described as lawmakers’ “disregard for facts, economic reality, and the voices of tens of thousands of Californians.” He argued that the legislation would effectively grant monopoly power to select tribal gaming operators whilst disadvantaging other tribal nations and eliminating competitive market forces.

Several tribal gaming organisations have publicly opposed AB 831, citing concerns about its potential economic ramifications. The opposition stems from worries that the legislation could harm existing tribal gaming interests that benefit from current market structures.

The sweepstakes gaming sector has faced increasing regulatory scrutiny across multiple US states, with various jurisdictions pursuing similar prohibition measures. California’s bill represents one of the most advanced efforts to eliminate these operations entirely rather than establish regulatory frameworks.

Duncan indicated that the SGLA maintains hope that Governor Gavin Newsom will intervene to prevent the legislation from becoming law. The organisation believes the governor will recognise what they characterise as the bill’s “false premise” and exercise his veto authority.

The advancement of AB 831 reflects broader national tensions surrounding unregulated gaming activities and tribal gaming rights. As traditional gaming operators and tribal nations seek to protect their market positions, sweepstakes platforms face mounting pressure from legislative and regulatory authorities.