Tribal gaming leaders and attorneys believe sweepstakes gaming operators don’t have much time left in California.
A bill to ban sweepstakes casinos is moving quickly through the state Senate, and Victor Rocha, conference chair of the Indian Gaming Association, said on his webcast “New Normal” it’s “only a matter of time before the controversial dual currency form of gaming is eradicated.”
As CDC Gaming reported, the panel dissected California Attorney General Robert Bonta’s recent opinion declaring daily fantasy sports illegal under state law. They also looked at Assembly Bill 831, which is supported by tribes and aims to shut down online sweepstakes gambling. Tribes are calling for “immediate enforcement” from Bonta and urging lawmakers to pass the bill.
On Tuesday, AB 831 cleared a Senate committee with unanimous support. California’s Native American tribes, the only groups legally allowed to run gambling operations in the state, are behind the legislation.
California joins other states in going after companies offering online casino slots, table games, and sports betting through systems that let players use virtual coins. Since those coins can sometimes be traded for cash or prizes, tribes and regulators see this as gambling, and a violation of state compacts and laws.
California tribal leaders say ‘not much oxygen left’ for sweepstakes
The webcast featured Rocha and IGA CEO Brian Giles, along with tribal attorney Scott Crowell and Joe Webster, managing partner of Hobbs, Straus, Dean & Walker.
Crowell criticized sweepstakes operators and their affiliates for defending their business model while claiming tribal social media sites are doing the same thing. The companies argue more research is needed on the bill and that lawmakers shouldn’t rush it through.
“An avalanche is already happening against these (operators),” Webster said. “You’re seeing state-by-state legislation, AG opinions and enforcement action, and a lot of lawsuits being filed. A whole range of gaming that tribes are supposed to have exclusivity for is being run over by these operators.”
What a week. Sweepstakes gambling will still die an ugly death. That’s not up for debate. As for DFS, I see this as an opportunity to redefine the industry on our terms.
— Victor Rocha (@VictorRocha1) July 4, 2025
Rocha said the situation is playing out exactly as he expected. “After California, they’re not going to have much oxygen left,” Rocha said. “I think Texas is coming right behind us, especially when it’s this egregious exploitation.”
Both Webster and Crowell stressed that shutting down sweepstakes operators in California will require active government enforcement, including cease-and-desist letters and legal action, regardless of AB 831’s fate.
“Enforcement is the only thing these guys are going to understand,” Rocha said.
On Wednesday (July 9), the Social & Promotional Games Association warned the crackdown would stifle “innovation.”
