The most hotly-contested legal fight over sweepstakes casinos this year draws to an end with California Governor Gavin Newsom signing AB831 into law. He did so at the weekend.
The bill outlaws sweepstakes casinos and their whole supply chain in the Golden State with some pretty straightforward language:
“337o. (a) It is unlawful for any person or entity to operate, conduct, or offer an online sweepstakes game in this state.
(b) It is unlawful for any entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly and willfully support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within this state.”
An “online sweepstakes game” is defined as one which works via a dual-currency system, and the bill goes on to assign fines of up to $25,000 and/or up to a year in jail for violation.
The legislation comes into effect on January 1 2026, as is the standard pattern for successful bills in California without an urgency clause.
Many sweepstakes casinos such as High 5, Crown Coins, and Mega Bonanza have already left the state, with Pulsz and McLuck added to that number recently; we expect all other operators to pull out eventually.
California is the Latest State to Ban Sweepstakes Casinos
CA is now the fifth state this year to ban sweeps casinos via the legislature route, the others being Montana, Connecticut, Nevada, and New Jersey. New York’s own anti-sweeps proposal (S5935) currently awaits a signature from Governor Kathy Hochul, and it’s thought she’ll sign, just like Newsom.
That being said, California’s proposal became arguably the biggest story out of all the states because it had the largest potential market. CA has the highest population out of any state, and a report from Eilers & Krejcik Gaming estimated its market share at $2.42 billion in 2025 – 17.3% of the total US sweeps market.
One of the angles that opponents of the bill spoke on was the potential loss of economic benefits for California. Sweeps trade body, the Social Gaming Leadership Alliance (SGLA) often pointed out the potential revenue that could be raised if the format was properly regulated and taxed – estimates suggested an opportunity for $200-$300 million in yearly tax revenue.
The other main angle was a limiting of freedoms for players, with critics arguing that AB831 represented government overreach. Opponents warned that prohibition could push users toward offshore or unregulated platforms too.
The CA bill also became arguably the most controversial this year, after it was introduced by a ‘gut and amend’ procedure. This is where the wording of a bill already in motion is completely replaced with new text, ensuring the new version doesn’t have to go through the same full scrutiny it normally would.
Governor Newsom signed AB 831. Sweepstakes gambling is a dead in California. I called it a year ago!!!
— Victor Rocha (@VictorRocha1) October 12, 2025
Introduced by Assemblymember Avelino Valencia, the bill was backed by the California tribes, as well as real-money gaming interests such as Light & Wonder. Victor Rocha, Conference Chair of the Indian Gaming Association, was perhaps the most vocal proponent, insisting that only the tribes should have the sovereign right to offer gambling-style products within the state.
However, some smaller tribes broke rank with the larger coalition, arguing that the bill would harm their economic independence by cutting off potential partnerships with sweeps and social casinos. Their protests cited how the legislation would only benefit the wealthier tribes already operating major casinos, while limiting new revenue opportunities for those without large-scale operations.
Jeff Duncan, Executive Director of the SGLA – which recently absorbed the SPGA – had this to say:
“We hoped that Governor Newsom would see past the anti-competitive efforts of the powerful, well-funded tribes behind this bill and veto AB 831, but he chose the easy, short-sighted path and turned his back on choice, innovation and economic gains.”
What Does AB831 Mean for Sweepstakes Casino Players in California?
California residents who are players at sweepstakes casinos should be aware that the format will be outlawed in under 3 months, with the new legislation coming into effect on January 1 2026.
This means your casino of choice is highly likely to withdraw from the state to avoid enforcement, if it hasn’t already. Therefore, we urge any California players to redeem Sweeps Coins as soon as possible to avoid disappointment.
It’s possible that some sweeps casinos will switch to a Gold Coin-only format in CA – popular platforms like Chumba and Pulsz already do this in selected states. However, Sweeps Coins-play will definitely end.
Alternatives also exist in the form of pure social casinos, like Gambino Slots and ZitoBox. Again, these allow promotional play-only, with no opportunity to redeem coins for real cash prizes.
That dual-currency mechanism leading to cash redemptions is ultimately what AB831 seeks to outlaw, and for now, California’s stance is clear: dual-currency sweepstakes are incompatible with its gaming laws.
Author: Joseph Allen
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