Tribal Leaders Back California Sweepstakes Casino Ban

California Assemblymember Avelino Valencia’s AB 831, which intends to ban online sweepstakes casinos, has strong support from tribal gaming operators. Tribal operators argue that sweepstakes casinos are exploiting legal loopholes that put consumers at risk and undermine tribal gaming sovereignty. 

At a recent webinar hosted by the Indian Gaming Association (IGA) and California Nations Indian Gaming Association, tribal leaders expressed their support for the bill. They emphasized that their opposition to sweepstakes casinos was about upholding the state constitution. 

Panelists at the webinar emphasized that the legislation will not ban legitimate promotional sweepstakes but will close loopholes exploited by online casinos operating outside regulatory frameworks. They also warned that comprehensive action is required to ensure unauthorized casino platforms do not simply rebrand themselves and return.

Sweepstakes operators push back

While Assemblymember Valencia’s bill has support from some parties, it has also faced significant pushback from the Social Gaming Leadership Alliance and the Social and Promotional Games Association. 

The Social Gaming Leadership Alliance, led by Jeff Duncan, was created by sweepstakes operator VGW to promote the interests of the sweepstakes industry.

“Many Californians play online games but this rushed proposal, which subverts proper process, would abruptly cut them off from popular, free-to-play entertainment they love.It was written by those involved in the gambling industry and introduced without providing the online social gaming industry any meaningful opportunity to engage. These parties with clear vested interests want to eliminate any and all perceived competition and are trying to deceive California legislators with a campaign of deliberate misinformation that, if successful, would close off a potential revenue stream for the state,” Duncan said on AB 831. 

While the issue feels imminent with other US states introducing measures against sweepstakes casinos, the California legislative session runs until Sept. 12. It carries into 2026, so there may be some time before this issue is resolved. 

Other states push against sweepstakes

Many US states have shown an appetite to prohibit online sweepstakes casinos, or at least regulate these gaming operations more closely. California’s recent legislative efforts join those from states like Louisiana and New York, which also submitted bills to ban sweepstakes casinos this year.

While Louisiana’s legislation failed to get signed into law, the sweepstakes casino ban in New York is under consideration by Governor Kathy Hochul after receiving approval from the NY House and Senate. 

Meanwhile, although Louisiana didn’t pass measures to ban sweepstakes casinos in the state, the Louisiana Gaming Control Board did serve 40 cease-and-desist letters recently, many of which went to sweepstakes operators.

The Mississippi Gambling Commission also sent 10 cease-and-desist letters to sweepstakes operators at a similar time.