California Passes AB 831 as Vendors Retreat from Stake.us

by Kevin Lentz, 16 September 2025

California’s Assembly approved AB 831 with a unanimous vote, signaling a potential end for sweepstakes casinos statewide.

California Assembly passes AB 831 sweepstakes ban. © sarangib, Pixabay

Key Facts:

• California Assembly passed AB 831 with a unanimous 63-0 vote on September 12
• Bill bans dual-currency sweepstakes casinos like Stake and Chumba statewide
• Governor Newsom has until October 12 to sign or veto the measure
• 11 vendors including NetEnt, Evolution, and Pragmatic Play pulled games from California Sweeps operators

The California Assembly unanimously passed AB 831 on September 12, moving to ban dual-currency sweepstakes casinos from the state. The 63–0 vote sends the bill to Governor Gavin Newsom, who has until October 12 to sign or veto the measure. If he chooses to take no action, the bill still automatically becomes law.

AB 831 Raises the Stakes

AB 831 specifically targets the dual-currency sweepstakes model, where gold coins are used for free play while sweep coins can be redeemed for prizes.

Both lawmakers and regulators pointed to sweepstakes casinos’ widespread use of this mechanism alongside games that mimic those found in actual casinos to circumvent state law prohibiting online casinos.

But California chose to take the legislation a step further by extending the liability. Affiliates, content providers, payment processors and platforms that knowingly support sweeps operators could face penalties up to $25,000 per violation, and up to a year in jail.

Bowing to pressure, the Senate revised the bill earlier in September to clarify that promotional sweepstakes by companies like McDonald’s or Starbucks would not be affected. The final version specifically targets operators “knowingly and intentionally” offering dual-currency sweeps casinos.

Opposition from the Industry

The Social Gaming Leadership Alliance (SGLA) has pushed back strongly, warning that the measure would damage tribal and social gaming opportunities.

Today’s hearing exposed the committee’s complete disregard for facts, economic reality, and the voices of tens of thousands of Californians.– Jeff Duncan, Executive Director, SGLA, SGLA Press Release

The group claims over 16,000 Californians contacted legislators in opposition, sending nearly 33,000 emails and making over 4,000 calls.

Casinos and Vendors Pull Up Stakes

Even before the Governor can legally sign the bill, both high-profile casinos and many of their vendors are heading for the hills. High 5 Casino and ClubWPT Gold have announced their departure.

Many of the vendors who supplied games to these operators have either pulled their games from California or, in the case of Pragmatic Play, pulled their games from sweepstakes operators across the entire US.

Playtech, Evolution, Skywind, Hacksaw, and others were elected just to pull their games from the state, waiting to see which way the courts rule on a state-by-state basis.

This leaves operators like Chumba and Stake with a drastically nerfed product offering that might affect their ability to continue operations while they await the Governor’s final decision.

Apart from that, Stake faces even bigger problems with a lawsuit filed by the Los Angeles City Attorney that accuses the company of operating an illegal gambling enterprise and pocketing millions.

Looking Ahead

All eyes are now on Governor Newsom, though the general expectation is that he will either sign it or ignore it and let it become law without his signature.

The state’s tribes, which have exclusive rights to all house-backed casino games in the state, have been very clear about their desire to see this bill passed, other than several small but notable exceptions.

They are a politically powerful force that the Governor would not want to antagonize needlessly. And with both the Senate and Assembly passing this legislation unanimously, a veto here seems counterproductive at best.

However, in any case, suppliers are treating AB 831 as if it were already law, retreating from grey-market partnerships to avoid reputational and regulatory risk.

California will probably join New Jersey, Connecticut, New York, and several other smaller states to make sweeps illegal this year. The message is becoming increasingly loud and clear for operators, affiliates, and suppliers. Appease state legislatures, or face slow extinction.