California Becomes Latest State to Ban Sweepstakes Casinos

Sweepstakes casinos are no longer operational in California, three months following Governor Gavin Newsom’s signature of AB 831. The bill officially makes it illegal to operate or promote a sweepstakes casino in the Golden State, the state’s latest move to restrict gambling options within its borders.

The new law is a major setback for sweepstakes casino operators, as it removes California’s 39 million residents from their pool of potential customers. AB 831 passed through both chambers of the California legislature without opposition, and the measure received strong support from the California Nations Indian Gaming Association (CNIGA).

CNIGA claimed that sweepstakes casinos, which aren’t regulated by the state, violate the state compacts that provide the tribes of California with exclusive rights to offer slot machines and table games. California is home to 110 registered Native American tribes, 63 of whom own and operate at least one tribal casino.

California becomes the fifth state to officially ban sweepstakes casinos in 2025, joining Connecticut, Montana, New Jersey and New York. Overall, nine states have an official whole or partial ban on sweepstakes casinos. Michigan, Nevada and Washington do not permit social casinos at all, and Idaho only permits users to play for entertainment purposes, amounting to a de facto ban in that state.

How Are Bettors Affected?

Upon the governor’s signature, social casinos became illegal in California as of January 1, 2026. Residents of the Golden State had until the end of the day on Dec. 31, 2025 to cash in all sweepstakes coins before access to their accounts became blocked.

The decision takes away the only real form of online wagering in California, as it no longer has any form of legal online betting. Those wishing to gamble do have a few in-person options. The tribes of CNIGA operate 86 land-based tribal casinos in the state, offering slot machines, bingo and table games. Racetrack betting remains legal, as does cardroom betting, where bettors wager against each other rather than playing against the house. Additionally, the California State Lottery remains operational.

Outside the state, the bans in California and in other states have had an affect on players elsewhere. In 2025, Pragmatic Play, makers of popular online slots such as Sweet Bonanza and Gates of Olympus, announced it will no longer support sweepstakes casino games in the U.S. market. If more retailers pull their games from sweepstakes casinos, the industry could see bettors in legal states voluntarily leave the market.

How Is the Industry Affected?

The loss of the California market means a projected $790.5 million in revenue will disappear from sweepstakes casinos as a whole, almost overnight. As the largest state in the nation, California represented a significant chunk of sweepstakes casinos’ revenue, especially because no form of state-regulated online gambling existed in the Golden State. That also became a major point of contention for Newsom and California legislators, as the state saw no tax revenue from Californians wagering. The tribes are legally permitted to operate casinos in the state because they share their revenue with the California state government, but sweepstakes casinos had no such agreement and no state regulation, making their presence unacceptable to both tribal leaders and politicians alike.

What Does the Future Hold for Gambling in California?

Ironically, this decision might lead to an expansion of gambling in California over the next few years. Sports betting remains illegal in all forms in California, but the tribes seeing their sovereignty and exclusive license respected is expected to be a key piece toward getting them back to the bargaining table.

Voters have twice rejected ballot proposals to legalize sports betting at tribal casinos, and neither proposal had the support of the tribes. Reports suggest that FanDuel and DraftKings are attempting to work with the tribes to finally bring legal sports betting to California. Such a proposal wouldn’t be possible until at least 2027, as voters would have to approve a ballot initiative to make sports betting legal in any form.