Clock Ticks for Governor Newsom on California Sweepstakes Casino Ban
California Governor Gavin Newsom faces a Sunday, October 12, 2025, deadline to act on Assembly Bill 831 (AB 831). The controversial bill aims to ban online casino-style games that operate via the sweepstakes model. Newsom has not yet signaled his position on the bill, which landed on his desk after receiving unanimous approval in the State Assembly (63-0) and the Senate (36-0).
Newsom has three options: sign the bill into law, veto the bill, or allow it to become law without his signature. If the ban takes effect, it would start on January 1, 2026.
Powerful Tribal Forces Drive Ban
AB 831 enjoys powerful support from major political forces in California. The bill is strongly backed by the California Nations Indian Gaming Association (CNIGA) and many of the state’s most influential and wealthiest tribes.
These tribes argue the ban is necessary to protect their exclusive right to offer casino-style gaming. The sweepstakes model, which uses a dual-currency system to simulate real-money gambling, has long been a point of contention for tribal operators who hold a constitutional monopoly on casino gaming. The bill also expands criminal liability to third-party entities, such as payment processors and game suppliers, that “knowingly and willfully” support the prohibited operations.
Smaller Tribes and Industry Groups Call for Veto
Despite the bill’s unanimous passage through the legislature, a vocal coalition of opponents urges Governor Newsom to issue a veto. The opposition is led by a group of four smaller, more rural tribes.
These smaller tribes argue that AB 831 poses a direct threat to their economic sovereignty. They contend the bill eliminates a key revenue pathway for tribes that do not possess large, established brick-and-mortar casinos.
Additionally, the Social Gaming Leadership Alliance (SGLA), which represents social gaming operators, has asked Newsom to veto the bill. SGLA warns that the measure could “worsen economic disparities among Tribal Nations, stifle digital innovation, and drain a billion dollars from the state’s economy.”
Eric Wright, an economic development executive for the Kletsel Dehe Wintun Nation, echoed the sentiment that the bill unfairly disadvantages smaller tribes.
If Newsom signs AB 831, California will join a growing list of states, including New Jersey and Montana, that have legislatively banned sweepstakes online casinos.
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