California Bans Sweepstakes Casinos Starting 2026

Summary

Assembly Bill 831 passed the California legislature unanimously and was signed by Governor Gavin Newsom. From 1 January 2026, sweepstakes casinos — platforms that typically use virtual coins and have operated in a legal grey area — will be banned across the state.

The California Nations Indian Gaming Association (CNIGA) backed the measure, arguing it protects tribal nations’ exclusive rights to offer gambling. Industry groups such as the Social Gaming Leadership Alliance (SGLA) strongly opposed the bill, warning of economic losses and reduced digital innovation. California’s decision follows similar moves elsewhere and leaves the sweepstakes sector without access to the US’s largest state market.

Key Points

AB 831 passed with zero opposing votes in the legislature and was signed by Governor Newsom.
The ban comes into force on 1 January 2026; sweepstakes casinos will no longer be available to Californians.
CNIGA supported the bill, citing protection of tribal gaming exclusivity and constitutional consistency.
SGLA and operators argued the ban would harm the economy, claiming a potential $1 billion hit and lost innovation.
California, with 39+ million residents, is the largest state to outlaw sweepstakes platforms — a major blow to the industry.
Other states are taking varied approaches: New York has a similar bill awaiting signature, while Florida recently failed to pass a ban.

Context and Relevance

The law underscores California’s stance favouring tribal gaming compacts and tighter oversight of social/sweepstakes gambling. For operators and investors it represents a significant market contraction and may prompt legal, commercial and regulatory responses. Regulators, tribal groups and industry stakeholders should expect heightened scrutiny and shifting policy debates in other jurisdictions.

Why should I read this?

Look — this matters if you’re in iGaming, tribal gaming, or run/partner with sweepstakes platforms. It closes off the biggest US market, changes the legal playbook, and could set a precedent other states copy. If you’re a casual player, it’s still useful to know where you’ll lose access next year.