California lawmakers have advanced Assembly Bill 831 with revised language aimed at explicitly targeting online sweepstakes casinos. The updates clarify that the measure is clearly directed at digital sweepstakes gambling-style platforms while leaving state lottery and marketing sweepstakes untouched.
In addition to prohibiting the operation of sweepstakes casinos, the updated language expands liability to include partners of operators that knowingly and willfully provide support. This encompasses a diverse range of participants, including payment processors, geolocation providers, game developers, and media affiliates.
These revisions come at a time when Stake.us was hit with a lawsuit within the state, which also included a pair of gaming developers in Evolution and Hacksaw Gaming.
The revised language in AB 831 directly addresses criticisms that the measure could extend beyond sweepstakes casinos and affect other lawful activities.
The bill makes clear that it does not apply to licensed gambling under the Gambling Control Act, the California State Lottery, or promotional sweepstakes linked to genuine product sales.
Here’s an example of language within the bill for lotteries with licensed gambling:
“Nothing in this section shall be deemed to render unlawful or restrict otherwise lawful games and methods used by a gambling enterprise licensed under the Gambling Control Act or operations of the California State Lottery.”
More language that supports promotional sweepstakes marketing include:
“These provisions do not make unlawful game promotions or sweepstakes conducted by for‑profit commercial entities on a limited and occasional basis as an advertising and marketing tool that are incidental to substantial bona fide sales of consumer products or services and that are not intended to provide a vehicle for the establishment of ongoing gambling or gaming.”
By explicitly outlining these exemptions, lawmakers have removed a key argument raised by opponents, which is that AB 831 might unintentionally restrict common marketing promotions or state-sanctioned lottery programs.
The Senate made small but important edits to AB 831 to make the bill more precise. For example, instead of saying “gambling-themed games,” the text now just says “gambling,” and “casino-style table games” was shortened to “table games.” This avoids confusing or overly broad language that could be interpreted in different ways.
If the bill had kept the phrase “gambling-themed games,” someone could argue it also applies to harmless games that look like gambling but don’t involve real money or prizes, such as a free mobile poker app. By shortening it to just “gambling,” the law now clearly points to actual gambling activity, not anything that only resembles it.
On the other hand, if the bill had kept the phrase “casino-style table games,” it might raise questions about what exactly counts as “casino-style.” For example, it could force a casual online card game to fall under that category just because it looks similar to something in a casino.
By simplifying the wording to just “table games,” lawmakers made the rule clearer. It now directly covers games like blackjack, roulette, or poker that are commonly associated with gambling, without leaving gray areas about whether something needs to be “casino-style” to qualify.
Lawmakers also added the phrase “and willfully” next to “knowingly” when describing who can be held responsible. This means a company would need to both know what it was doing and intentionally support sweepstakes casinos to be at fault. These changes are meant to keep the bill focused on actual gambling operations, without accidentally pulling in other businesses or harmless promotions.
These revisions show lawmakers are working to tighten the bill’s language, ensuring AB 831 specifically targets online sweepstakes casinos while minimizing unintended effects on legitimate gaming and promotional activities in California.
