Inside Califonia’s New Bill That Could End Online Sweepstakes Games

California State Assembly member Avelino Valencia (D-Anaheim) has introduced Assembly Bill 831 to protect Californians from unregulated online gambling. The bill targets online sweepstakes games that use a “dual currency” system to imitate casino-style betting.

These “sweepstakes” platforms sell virtual coins for playing casino-like games, which can be exchanged for cash or prizes, effectively operating as unlicensed gambling businesses. They exploit “No Purchase Necessary” disclaimers to avoid California’s gambling regulations and bypass voter-approved Tribal-State gaming laws. Many of these operators are based overseas and operate without proper oversight, avoiding consumer protections, responsible gaming measures, background checks, and tax obligations.

Assemblymember Valencia stated, “We cannot ignore these platforms exploiting legal loopholes. They undermine the voter-approved system that recognizes Tribal governments’ sovereign right to conduct gaming in California. AB 831 strengthens this system to keep gaming fair and accountable.”

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AB 831 enhances current sweepstakes laws by clearly declaring internet sweepstakes using the dual currency model illegal. It emphasizes the shared responsibility of the State, licensed operators, and Native Nations to maintain safe, transparent, and accountable gaming. The bill is co-sponsored by the Yuhaaviatam of San Manuel Nation, the California Nations Indian Gaming Association (CNIGA), and the Tribal Alliance of Sovereign Indian Nations (TASIN), showing strong support from Tribal communities.

Lynn Valbuena, Chairwoman of the Yuhaaviatam Tribal Council of San Manuel, said, “For over 25 years, Tribal governments like ours have respected California voters’ will by running gaming operations with integrity. This has helped us reinvest in our communities, grow local economies, and support vital public services. Illegal online gaming threatens this foundation, undermining voter-approved laws and putting Californians at risk.”

Johnny Hernandez, Jr., Vice Chairman of the Yuhaaviatam Tribal Council, added, “We back this legislation to close dangerous loopholes and protect the integrity of California’s gaming system. We are dedicated to defending Tribal sovereignty and ensuring gaming benefits all Californians. Together with the State, Tribal governments will continue to fight illegal internet gaming in all forms.”

James Siva, Chairman of CNIGA, highlighted the economic importance of Tribal gaming, stating, “Tribal gaming contributes nearly $25 billion to California’s economy, supports over 112,000 jobs, and funds essential community programs. Unregulated online sweepstakes threaten this voter-approved system by mimicking casino gaming without oversight or accountability. These illegal platforms eliminate the benefits of regulated gaming and expose consumers to serious risks.”

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