CA Anti-Sweeps Bill Progresses Out of Suspense File

California’s AB831 has moved out of its suspense designation in the legislature, taking another step towards passage.

The anti-sweepstakes bill – introduced by Assemblyman Valencia via a ‘gut and amend’ process – was approved to proceed with a unanimous vote of 7-0. This was announced during the Senate Appropriations Committee on Friday (August 29).

AB831 had passed into suspense for a review of financial implications, a standard step for any bill expected to generate significant costs for the state.

This meant it was temporarily held while committee staff assessed potential expenses – for example, because of increased enforcement by regulators, or legal costs arising from challenges to the law. Moving out of suspense with a unanimous vote shows that lawmakers determined the fiscal impact was acceptable.

Now, because AB831 was gutted and amended, it doesn’t require the Assembly’s full scrutiny again, despite having completely different contents from when it was originally approved (back in May). This is why gut and amend is controversial.

The bill has since passed through the committee stage of the Senate, and all that remains here is a full floor vote. If approved, it will return briefly to the Assembly for concurrence on the amended language, before heading to the Governor’s desk for a signature or veto.

While other states like Connecticut, Montana, and New Jersey have signed anti-sweeps bills into law this year, the California version is especially noteworthy because CA is widely regarded as the biggest market for sweepstakes nationwide. A report from Eilers & Krejcik Gaming last month estimated the Golden State accounts for 17.3% of the total US market, valued at $2.42 billion overall.

Recent Opposition to AB831

The bill, which is backed by various Indian tribal gaming groups, has experienced vocal opposition over the last few weeks.

The Kletsel Dehe Wintun Nation, a federally recognized tribe located in Northern California, spoke out against the bill initially, and, in a surprising move, announced a partnership with sweepstakes industry-leader, VGW.

Since then, two more tribes have voiced similar sentiments. First, was Big Lagoon Rancheria, a federally recognized tribe located in Humboldt County. Then came the Sherwood Valley Rancheria of Pomo Indians located in Mendocino County. In fact, the latter announced a partnership with B-Two Operations Limited, one of the other major operators in the sweepstakes space (the partnership does seem to contradict B-Two withdrawing its brands from CA, a process it began in July).

All three tribes argue that AB831 would limit their economic opportunities, and that tribal support for the bill is not unanimous. Of course, the Social Gaming Leadership Alliance (SGLA) and Social and Promotional Games Association (SPGA) have both continued to voice opposition alongside the three tribes. From an SPGA spokesperson:

Then, one of the most recognized sweepstakes-related brands, Publishers Clearing House (PCH), wrote to Senate committee members urging them to drop the bill:

PCH became a household name in the 80s and 90s for its iconic mail-in sweepstakes promotions and prize drawings, and more recently it was acquired by ARB Interactive, operator of Modo.us sweepstakes casino. It remains to be seen exactly how ARB will integrate PCH and its assets into the sweepstakes casino space.

Will AB831 Pass This Year?

Opponents of the bill will be hoping that California’s legislative session runs out of time before passage this year. The session is scheduled to end on September 12, and both chambers still need to approve the proposal.

However, even if time did run out, California operates on a two-year legislative cycle, meaning AB831 could automatically carry over into the next session without needing to be reintroduced, allowing lawmakers to take it up again in 2026.

We will be closely watching the next two votes, as the final outcome will shape the state – and the nation’s – sweepstakes landscape for the foreseeable future.