California Bill to Ban Sweepstakes Poker Sites Passes
Summary
California’s Assembly Bill 831, which would outlaw sweepstakes-style online casinos that sell ‘sweeps coins’ to enable real-money play, has cleared the state legislature and now waits on Gov. Gavin Newsom’s desk. The bipartisan measure, sponsored by Assemblymember Avelino Valencia (D), moved through multiple votes with minimal opposition — including a 20-2 committee result and a 79-0 vote on the Assembly floor. If signed, the bill will criminalise operating online sweepstakes games in California, exposing operators to misdemeanor charges, up to one year in jail and fines of up to $25,000.
The law is aimed squarely at operators using the sweepstakes loophole — companies like ClubWPT Gold and Global Poker — and follows increasing enforcement actions in other states, such as cease-and-desist notices in New York. Industry groups representing social gaming and tribal interests have warned the ban would harm tribal revenue and strip roughly $1 billion from the state’s economy.
Key Points
- AB 831 would make it illegal to operate online sweepstakes games in California; penalties include misdemeanor charges, up to one year in jail and $25,000 fines.
- The bill passed through committees and both legislative houses with little resistance (committee 20-2; Assembly 79-0) and is now awaiting Gov. Newsom’s signature or veto by 12 October 2025.
- The law targets sites that sell ‘Sweeps Coins’ — a model used by operators such as ClubWPT Gold and Global Poker to circumvent online-gambling prohibitions.
- The Social Leadership and Gaming Alliance warned the ban would damage tribal economies and cost the state about $1 billion in economic activity.
- California follows other major jurisdictions tightening enforcement against the sweepstakes model; New York moved against 26 sweepstakes casinos earlier in 2025.
- Some sweepstakes operators have already exited certain states; play in California may continue briefly but major changes are likely by January if the governor signs the bill.
Context and Relevance
The sweepstakes model has been a workaround in U.S. jurisdictions that forbid traditional online gambling: users buy virtual currency (Sweeps Coins) to participate in games with cash-value prizes. AB 831 seeks to close that loophole in the largest U.S. market, which would have wide knock-on effects for operators, players and tribal partners who have relied on the social-gaming model for revenue and growth.
For regulators and industry watchers, this is part of a broader trend of states pushing back on novel online-gaming models and asserting stricter interpretations of gambling laws. For players and operators, California’s decision will materially alter access to sweepstakes poker in a major market and could accelerate regulatory changes elsewhere.
Why should I read this?
Short version: if you play, work in, or follow online poker, this matters — big time. California is the biggest market in the US; banning sweepstakes sites would cut off major operators and change where and how people can play. It’s a one-line change on the books but a big hit to the business model that’s been skirting online-gambling rules. Read the detail if you care about access, tribal economics or the future of online poker.