California to Prohibit Sweepstakes Casinos Starting in 2026
Legislature and Governor Enact Ban
California’s legislature unanimously passed a bill banning sweepstakes casinos, a move solidified by Governor Gavin Newsom’s approval. Starting January 1, 2026, these establishments will no longer be permitted in the state.
Unanimous Support for Assembly Bill 831
Assembly Bill 831, strongly supported by the California Nations Indian Gaming Association (CNIGA), received no opposition in the vote. CNIGA emphasized that sweepstakes casinos infringe on tribal rights to operate gambling in California.
They stated that the bill ensures the state’s gaming laws remain aligned with its constitution and tribal agreements.
This development marks a significant setback for the sweepstakes casino industry, as California’s large population of over 39 million represented one of its biggest markets.
Previously, New York has moved similarly, with legislation awaiting the governor’s signature, while Florida saw attempts to prohibit sweepstakes casinos fail earlier this year.
Industry Response and Concerns
Not everyone welcomed the ban. The Social Gaming Leadership Alliance (SGLA), which represents sweepstakes casino operators, urged Governor Newsom to veto the bill. They referenced research indicating that 85% of respondents favored updating and regulating sweepstakes games rather than banning them.
SGLA’s executive director, Jeff Duncan, expressed disappointment, highlighting potential negative impacts such as increased economic disparities among tribes, hindering California’s digital innovation, removing a favored form of entertainment, and a projected $1 billion loss to the state’s economy.
Duncan appealed for the creation of online social games to support economically disadvantaged tribes and boost the state’s economy, positioning California as a leader in emerging gaming technology.
Governor’s Decision and Industry Impact
Despite opposition, Governor Newsom signed the bill into law without delay. This action makes clear California’s intention to end sweepstakes casinos, which have often operated in a legal gray area by using virtual currency instead of cash bets.
Beginning in January 2026, players in California will need to find alternative social casino gaming options, resulting in the industry losing access to one of its largest markets to date.
