California has officially entered the sweepstakes casino crackdown. On July 8, 2025, the California Senate Governmental Organization Committee unanimously advanced AB 831, a bill designed to ban sweepstakes casinos and sportsbook-style games that operate outside the state’s regulated gambling framework.
The vote—10 to 0 in favor—marks a significant escalation in California’s stance toward dual-currency gaming platforms, which have long operated in a legal grey area. If signed into law, Assembly Bill 831 would outlaw the core mechanics of the sweepstakes model, including the use of virtual currencies like Gold Coins and Sweeps Coins that simulate real-money gambling while technically offering free play.
What Is AB 831?
AB 831 seeks to prohibit unlicensed online gambling disguised as sweepstakes or promotional contests. Specifically, the bill would:
- Define and ban casino-style sweepstakes games that use proxy currencies for prize redemption.
- Apply the ban to both online casinos and social sportsbook sweepstakes platforms.
- Extend enforcement not only to operators, but also to payment processors, affiliate marketers, and software providers involved in the ecosystem.
The language in AB 831 targets games that “simulate gambling activities” and offer players a “chance to win a prize” based on random outcomes, which encompasses nearly all major sweepstakes casino models.
Tribal Backing and Broad Political Support
Support for the bill is strong, particularly from California’s tribal gaming coalitions, who argue that sweepstakes platforms directly threaten the integrity and exclusivity of tribal gaming compacts. These casinos operate under strict state and federal guidelines, pay taxes, and fund responsible gambling programs—unlike their unregulated sweepstakes counterparts.
Lawmakers have echoed these concerns, pointing to the lack of consumer protections, tax oversight, and age verification systems used by most sweepstakes platforms. Proponents of AB 831 argue that if left unchecked, these sites will continue to siphon revenue away from both tribal and commercial casinos operating under license.
What the Bill Means for Operators
If AB 831 is passed into law, it would likely force the complete shutdown of sweepstakes casino operations in California. Major platforms—such as Chumba Casino, LuckyLand Slots, and Pulsz—would be prohibited from offering prize redemptions to California residents. Operators could face legal penalties for continuing to serve users in the state.
This is not merely symbolic. California is one of the largest online gaming markets in the U.S., and a sweepstakes casino ban would be a massive blow to companies that rely on volume from populous states. Industry insiders already speculate that some platforms may exit the California market preemptively to avoid legal exposure.
What’s Next for AB 831?
Following its unanimous approval in committee, AB 831 now heads to the Senate Public Safety Committee, where it will undergo further debate before proceeding to a full Senate vote. If approved, it will return to the Assembly for final concurrence before being sent to Governor Gavin Newsom for signature.
No timeline has been confirmed, but with bipartisan support and strong tribal lobbying, the bill is widely expected to move swiftly through the remaining stages.
Why This Matters
California’s move follows similar efforts in New York (S9226), New Jersey (A5447), Michigan (HB 5662), and other states that have either banned or are actively legislating against sweepstakes-style gambling. In tandem with recent enforcement actions in Louisiana, the national climate is shifting rapidly.
AB 831 could be a bellwether for broader federal scrutiny, especially as sweepstakes operators continue to exploit regulatory loopholes to reach users in states without real-money iGaming laws.
If AB 831 becomes law, it will effectively shut the door on the sweepstakes casino model in California, making it illegal for platforms to operate any online games with redeemable virtual currencies. For players, it means fewer options—and for operators, it’s a clear warning: the days of skirting regulation under the sweepstakes banner may be numbered.
Stay tuned to bansweepstakes.com for full coverage as AB 831 moves through the California legislature.