A United Front Against Attorney General Bonta’s Proposed DFS and Sweepstakes Ban
A coalition of seven influential organizations, including the Social and Promotional Games Association (SPGA) and the American Civil Liberties Union (ACLU), has publicly opposed California Assembly Bill 831 (AB 831)—a proposed piece of legislation introduced by California Attorney General Rob Bonta that seeks to ban daily fantasy sports (DFS) and sweepstakes in the state.
Other coalition members include the American Transaction Processors Coalition, Association of National Advertisers, Californians United for a Responsible Budget, Virtual Gaming World, and the Social Gaming Leadership Alliance (SGLA). This broad coalition signals rising concern over the potential unintended consequences of AB 831, which is scheduled for a Senate hearing on July 15, 2025.
Concerns Over Vague Language and Broad Interpretations
Central to the opposition is the argument that AB 831 employs overly broad language and introduces ambiguity around what constitutes illegal gambling and sweepstakes. According to the SPGA, this vagueness could jeopardize legal promotional sweepstakes, which are commonly used in marketing and remain legal under current California law as long as they comply with consumer protection statutes and avoid lottery-like structures.
The SPGA’s statement reads:
“This diverse coalition, including civil liberties advocates, leading businesses and industry groups, reflects a shared belief that the bill, as written, could have unintended consequences for lawful promotional practices without offering clear consumer protections.”
ACLU Joins the Battle: Civil Liberties at Risk?
The ACLU’s involvement adds significant weight to the opposition, raising concerns not only about commercial freedoms but also First Amendment and due process implications. The organization often opposes vague or overly broad statutes that could result in arbitrary enforcement, and their alliance with gaming and business groups underlines that AB 831’s effects extend far beyond the gambling sector.
The Virtual Gaming World, which operates legal sweepstakes-based platforms, is particularly concerned that the bill may unfairly target innovative digital business models that remain compliant with existing state laws.
Industry Reaction and Legal Maneuvers
Ahead of the bill’s formal hearing, DFS operator Underdog attempted to block the measure through legal means, filing for an injunction and restraining order against AG Bonta. The motion was denied, but it reflects the high stakes for operators whose business models rely on DFS and skill-based gaming.
If passed, AB 831 would reshape California’s legal landscape for digital gaming, shutting down fantasy sports platforms and sweepstakes-based promotional marketing campaigns that have become commonplace among advertisers, fintech firms, and social gaming providers.
What’s Next?
As AB 831 moves forward in the Senate, lobbying efforts and legal scrutiny are expected to intensify. With California being the largest market for both DFS and promotional sweepstakes in the U.S., the bill’s impact could have national repercussions for both gaming operators and adjacent industries.
The outcome of the July 15 hearing will likely be a key turning point, determining whether the state proceeds with an outright ban or chooses to revisit the bill’s language and scope in light of mounting opposition.
Bottom Line: While positioned as a consumer protection measure, AB 831 may inadvertently stifle legal businesses and promotional practices. The broad coalition of opponents reflects a cross-industry demand for clearer regulatory language and balanced enforcement, rather than sweeping bans that risk collateral damage.
