In suspense over the future of sweepstakes casinos in California? So is the bill that would ban them from the state.
The California Senate Appropriations Committee has placed Assembly Bill 831 (AB 831) in its suspense file. While on the surface that doesn't appear to bode well for the future of the bill, the move may only be a temporary measure.
The suspense file is akin to a waiting room or being put on hold. You might only be in that situation for a short period, or you could linger there for quite some time.
It's a common practice when considering major bills. The Senate Appropriations Committee places bills that could cost the state’s general fund $50,000 or more into the suspense file for later consideration. But it's entirely possible that later won't be much later.
The bill could be back before the committee as early as the beginning of next week. Bills placed in the suspense file are often considered in rapid-fire sessions held toward the end of the state assembly's session.
The current session is scheduled to conclude on September 12. However, a special hearing is set for August 25. AB 831 may be considered during this season. If not, it would still be on the docket when the state assembly resumes in January 2026.
If passed, AB 831 would ban sweepstakes casinos in the state.
Opponents of AB 831 have to be looking at this move with a sense of optimism. Many bills that end up in the suspense file never make it out and die on the assembly floor.
California's tribes, who control the majority of legal gambling in the state, have mostly been strong supporters of AB 831. It was Rep. James Ramos, a member of the Yuhaaviatam of San Manuel Nation, who helped co-author the bill. The tribe is a co-sponsor of AB 831.
“The state’s voters have consistently shown their trust in Native American tribes to operate gaming facilities responsibly and ethically," Yuhaaviatam of San Manuel Nation tribal leaders wrote in an argument in support of the bill. "Allowing unregulated and predatory sweepstakes operators to bypass these regulations undermines that trust and integrity of California’s gaming policies.”
However, there is evidence of a break in the ranks. The Kletsel Economic Development Authority (KEDA) spoke in opposition of Bill 831 at the most recent assembly session. This group is a federally chartered corporation of the Kletsel Dehe Wintun Nation.
Speaking before the committee, KEDA Chief Executive Officer Eric Wright was critical of AB 831.
“This bill lacks unanimous support among California tribes, has advanced without meaningful consultation with many of us, and threatens our inherent right to create legitimate revenue streams to support our people,” Wright said.
The tribe and sweepstakes casino operator VGW announced on Tuesday that they were forming a partnership.
The conditional agreement involves KEDA, which is the tribe’s economic development arm, and VGW partnering to operate free-to-play online social gaming platforms, including associated sweepstakes promotions, in California.
VGW operates some of the most popular sweepstakes casinos in the US market. They include Chumba Casino, Luckyland Slots, and Global Poker.
At issue with Bill 831 is whether sweepstakes casinos are a form of gambling. These casinos operate with a dual virtual currency format. Players can use Gold Coins to play social casino games for the sheer fun and entertainment of the experience. No real money changes hands.
Players can also opt to play with Sweepstakes Coins. Again, no money changes hands during casino gameplay. However, Sweepstakes Coins can be redeemed for prizes such as gift cards and sums of real money.
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