Anti-sweepstakes legislation in California amended by Senate floor
AB 831, which had previously been amended in 2025 to include language prohibiting sweepstakes play, was altered for a third time on September 3 and sent for a second reading.
Key Points
- California lawmakers revised the legislation in hopes of clarifying the legal status of sweepstakes promotions run by companies such as McDonalds and Starbucks
- The revised AB 831 also states there will be no attempts to restrict the operations of the California State Lottery or games and strategies used by licensed operators
The California Senate has revised Assembly Bill 831 for a third time, sending the anti-sweepstakes legislation back for a second hearing on September 3 after clarification was needed regarding the legal status of promotions run by companies such as McDonalds and Starbucks.
Lawmakers provided additional text within AB 831, having said, “The bill would specify that 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.”
The revised AB 831 also states there will be no attempts to restrict the operations of the California State Lottery or games and strategies used by licensed operators under the Gambling Control Act.
The clarification was required after the Social and Promotional Games Association (SPGA) warned those on social media of a recent promotion unveiled by the Make-A-Wish Foundation program, which the Alliance stated may be illegal under AB 831’s original text.
Good to know: The Superior Court of California, County of San Francisco, denied four motions filed by High 5 Entertainment in an ongoing legal dispute concerning its sweepstakes operations
The California Senate created a new section within the legislation that states prohibited sweepstakes play would only apply to operators “knowingly and intentionally” conducting business relating to online sweepstakes games that utilize a dual-currency system.
AB 831 is currently supported by organizations such as the Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA), while the likes of Virtual Gaming Worlds (VGW) and the Kletsel Dehe Wintun Nation of the Cortina Rancheria have spoken out in opposition.
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