California Bans Sweepstakes Casinos Starting 2026
In the U.S., the state of California has banned sweepstakes casinos starting January 1, 2026, after Governor Gavin Newsom signed Bill AB 831 into law.
Signing of Bill AB 831
California Governor Gavin Newsom signed Assembly Bill 831, which prohibits sweepstakes contests and gaming in the state. The bill was unanimously approved by both the California Senate and Assembly.
Key Provisions of the Law
The new law bans activities of:
- Sweepstakes operators;
- Their payment processors;
- Media partners associated with gambling.
Violators will be considered guilty of a misdemeanor, facing fines up to $25,000 or up to one year in county jail, or both.
Industry Pushback
The law faced strong opposition from the Social Gaming Leadership Alliance (SGLA), a group representing sweepstakes operators. SGLA warned that the law could result in a loss of more than $1 billion in annual economic activity and hundreds of millions in tax revenue.
SGLA’s Arguments
SGLA Executive Director Jeff Duncan stated:
“Today’s hearing ignored the facts, economic realities, and the voices of tens of thousands of Californians, while granting monopoly power to tribal organizations that have already invested hundreds of millions of dollars in Las Vegas and California’s coastal regions.”
History of Sweepstakes Bans in the U.S.
California is not the first state to ban sweepstakes gambling. Previous states include:
- Montana — the first state in 2025;
- Connecticut;
- New Jersey.
Laws in New York and Nevada are currently under review by their respective governors.
Support for the Law
| Stakeholder | Position on the Law |
|---|---|
| Tribal Gaming Interests | Support |
| Social Gaming Leadership Alliance (SGLA) | Opposition |
| California Government Agencies | Unanimous Approval |
Effective Date
The law takes effect on January 1, 2026. It bans so-called “dual currency” gambling and any activities supporting sweepstakes, including those of financial institutions, payment providers, content suppliers, and media partners.