Bill To Ban Sweepstakes Casinos Introduced In California

The Golden State is looking to add its name to the list of states that no longer allow sweepstakes casinos. 

California Assemblymember Avelino Valencia introduced AB 831 on Tuesday, which looks to ban sweepstakes casinos in the nation’s most populous state. The bill has support from the California Nations Indian Gaming Association but has drawn pushback from pro-sweepstakes groups, including the Social Gaming Leadership Alliance (SGLA) and the Social and Promotional Games Association (SPGA).

California tribes have exclusive rights to most forms of gambling in the state, other than player-banked card games. They claim sweepstakes casinos violate state law, while sweeps operators say they have a different model that does not constitute gambling.

Legislation targets operators, promoters and more

AB 831 takes a twofold approach to banning sweepstakes casinos.

First, it prohibits operating, conducting, offering or promoting online sweepstakes games. It defines sweepstakes casinos as online websites that utilize a dual-currency form of payment, simulate casino-style gambling and award cash or cash equivalents.

Additionally, it makes it illegal for “any person, entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider or media affiliate “ to support, conduct or promote online sweepstakes games.

According to this verbiage, celebrities endorsing sweepstakes casinos would violate California law, including Drake (Stake.us), Paris Hilton (WOW Vegas Casino) and Ryan Seacrest (Chumba Casino). 

The bill stipulates that any infractions would constitute a misdemeanor, punishable by a maximum fine of $25,000, by imprisonment of up to one year in county jail, or by both the fine and imprisonment.

“We cannot look the other way while these platforms exploit legal grey areas,” Valencia said in a statement. “These operations undermine the voter-approved framework that affirms Tribal governments’ sovereign right to conduct gaming in California. AB 831 strengthens that framework and ensures gaming in California remains fair and accountable.”

Sweepstakes ban bill progress so far

This week’s introduction was the second for AB 831. It was originally introduced in February and passed the Assembly and Senate unanimously in May and June. Three days after its passage, the Senate ordered the file inactive on June 13.

Ten days later, an amended version resurfaced with language specifically targeting sweepstakes operators. 

The bill’s changes will require it to undergo the legislative process again. However, it met no resistance during the first go around, and the state has consistently curbed gambling expansion in support of its tribal gaming model.

Opposition groups make multiple objections

The SPGA called the legislation a “backroom ban on promotional sweepstakes” and a “last-minute effort to outlaw digital legal games, without public debate, expert input, or economic analysis.” It also said the legislation was broadly written and could target other sweepstakes promotions by companies like Marriott, Microsoft and Starbucks.

The organization expressed similar sentiments regarding New York‘s legislature recently passing a sweepstakes ban, citing its “potential overreach,” making entrepreneurs, software vendors and investors criminally liable “for funding or building free-to-play digital entertainment and rewards platforms.”

It also highlighted that Southern California’s Yaamava Resort & Casino operates an online social casino that awards free casino play. The San Manuel Band of Mission Indians, which operates Yaamava, supports AB 831.

The SGLA chimed in, too. The organization’s leader, former US Congressman Jeff Duncan, said the prohibition would result in players going to black market operators, and added:

“Many Californians play online games but this rushed proposal, which subverts proper process, would abruptly cut them off from popular, free-to-play entertainment they love. It was written by those involved in the gambling industry and introduced without providing the online social gaming industry any meaningful opportunity to engage. 

“These parties with clear vested interests want to eliminate any and all perceived competition and are trying to deceive California legislators with a campaign of deliberate misinformation that, if successful, would close off a potential revenue stream for the state.”

Uphill battle for sweepstakes casinos

As sweepstakes casinos have grown in popularity in recent years, so has the attention they’ve garnered from state regulators. 

Five states passed legislation to ban sweepstakes casinos during their 2025 sessions: Connecticut, Louisiana, Montana, Nevada and New York. Several more discussed the topic, and even more will pick up that discussion next year.

Louisiana Gov. Jeff Landry vetoed the bill on June 13, saying the state already had a way to target illegal operators. The state served cease-and-desist letters to more than 40 sweepstakes operators on June 17.

California’s legislative session ends on Sept. 12. Active bills can carry over to the 2026 session.