Deputy Editor
While things look grim for California poker players anticipating the demise of sweepstakes poker in the state, there’s still a chance that the bill banning it won’t become law. Last week, the industry’s main trade organization penned an open letter pleading with Gov. Gavin Newsom to exercise his veto power before the bill is enacted.
Gov. Newsom has yet to sign AB 831, a bill banning sweepstakes gambling, into law. It arrived at his desk following unanimous passage through the state’s legislature.
All signs point to the bill becoming law. It never received a single “no” vote in its legislative lifespan. More than 80% of the bills that Newsom has received over the past few years have become law. And even if Newsom takes no action, the bill becomes law by default on Oct. 12. After that, it would take effect Jan. 1, 2026.
Popular poker sites like Clubs Poker, Global Poker, and ClubWPT Gold use the sweepstakes model. The latter even drastically pivoted its business model, possibly in hopes of maintaining legality under the expected new law.
Essentially, Newsom has to veto the bill to stop it.
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Veto Would Almost Certainly Stop Sweepstakes Ban
Newsom vetoed 16% of the bills he received in 2024. So, a veto is unlikely but possible.
Trade groups fighting the ban have called on Newsom to use his veto powers. Social Gaming Leadership Alliance (SGLA) Executive Director Jeff Duncan called the bill’s passage through legislature “incredibly disappointing.” He claimed the state will miss out on more than $200 million in tax revenue.
“We implore Governor Newsom to veto this bill and instead open the door for online social games to support economically disadvantaged tribal nations and the state’s economy while positioning California as a leader in next-generation gaming technology,” he said.
Most of the California tribes, which carry significant political power, advocated in favor of AB 831. However, a few smaller ones have partnered with sweepstakes operators and lobbied against its passage.
Since AB 831 received such overwhelming legislative support, it might appear all but certain to become law even if Newsom issued a veto. After all, the California legislature can override the veto via a two-thirds vote in each legislative chamber.
In practice, due to a variety of political reasons, this basically never occurs. According to Cal Matters, the legislature hasn’t overridden a veto since 1979. That’s despite the fact that Newsom alone has vetoed hundreds of bills that had more than 90% support in the legislature, well in excess of the two-thirds needed.
So, despite unanimity in the legislature, a Newsom veto would almost certainly kill AB 831 and similar efforts, at least in the short term.
Why Would Newsom Veto an Anti-Sweepstakes Bill?
Cal Matters explains that gubernatorial vetoes from Newsom have generally occurred due to one of the following reasons:
- Budget concerns
- Disagreement over policy
- Deemed unnecessary due to overlap with other state agencies or local governments
Currently, sweepstakes operators have little oversight, and what they do have is at the federal level. Real-money online gambling isn’t legal in California. The sweepstakes operators reside in a gray area that AB 831 hopes to erase. There is seemingly no way AB 831 could fall into the third category, in other words.
Budget concerns are also unlikely to save the day for sweeps. As much as they advocate for the possibility, regulating and taxing sweepstakes gambling would almost certainly be a non-starter in California. It has repeatedly shut down attempts at doing the same for real-money online gambling, mainly due to intense lobbying and public campaigning against it by tribal gaming interests.
That leaves only a disagreement over policy as a reason the governor could veto. Newsom has not given any public indication of whether he supports or opposes AB 831.
However, he has shown significant support for tribal efforts in the state’s gambling industry. Last year, he signed a bill into law that allowed the tribes to sue California card clubs for violating their gaming exclusivity via work-arounds in the mechanics of the games.
So, with the majority of tribes backing AB 831, PokerScout’s assessment is that it’s unlikely Newsom will veto.
Victor Rocha, conference chair of the Indian Gaming Association, likewise said in a webinar that he expects Newsom to take no action.
“Right now, I would say he lets this thing go,” Rocha said. “He doesn’t sign it, it becomes law, and everybody wins except the sweepstakes.”
Image credit: Gage Skidmore/Wikimedia Commons (license)
