ACLU Slams California’s Online Sweepstakes Ban
The ACLU California Action, joined by a broad coalition, opposes AB 831, a bill aiming to ban online sweepstakes casinos in California. Critics warn its vague wording could harm legal promotions and unfairly punish consumers.
Harsh Penalties and Vague Rules
AB 831, sponsored by Assemblymember Avelino Valencia, seeks to outlaw online sweepstakes casinos and tighten digital gambling laws.
It targets platforms using dual-currency systems, where players swap cash for virtual items to win prizes, labeling them illegal. The bill doubles jail time from six months to a year and hikes fines from $1,000 to $25,000, a 2500% jump, for anyone involved in online sweepstakes.
ACLU California Action argues, “AB 831 would rachet up existing punishments for gambling… prosecutors may argue that anyone who participates in an online sweepstakes is directly or indirectly supporting the gambling platform.” They cite the Federal Department of Justice, saying these harsh penalties won’t stop crime.
Threat to Legal Promotions
The bill’s broad language worries the ACLU and groups like the Association of National Advertisers, including Google and NBCUniversal, and the Social & Promotional Games Association (SPGA).
They fear it could “criminalize standard promotional activities,” like Coinbase’s giveaways, as SPGA noted: “This is not smart legislation.”
The Social Gaming Leadership Alliance’s Jeff Duncan added, “This rushed proposal not only cuts Californians off from the free-to-play games they enjoy… but it also threatens to criminalize the businesses that drive California’s economy.”
Critics say AB 831, passed via a last-minute “gut-and-amend” process, skipped proper debate, risking unintended harm to legitimate marketing without clear consumer protections.
AB 831 passed the Assembly in May 2025 and was unanimously approved by the Senate Governmental Organization Committee on July 8, 2025. It faced a Senate Public Safety Committee hearing on July 15, with a final deadline of September 12, 2025, or it may roll over to 2026.
California’s tribal groups and the California Nations Indian Gaming Association back the bill, seeing it as a way to protect their exclusive gaming rights.
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