California Passes Anti Sweepstakes Bill

AB 831 has crossed its final hurdle in Sacramento, passing the Senate, and is now on Governor Gavin Newsom’s desk for a signature or a veto.

The Assembly wrapped things up on September 12, 2025, the last day of session, with a 63–0 floor vote. All the signs point to Newsom signing the bill into law and sweepstakes casinos being banned in California from January 1^st 2026.

The Social Gaming Leadership Alliance (SGLA) warned lawmakers they’re walking away from a regulatable, taxable vertical with real economic weight. Meanwhile, suppliers have already started to peel back. Big-name studios tied to sweeps, including those with household slots catalogs, have paused or exited California exposure after a recent civil enforcement action from the LA City Attorney that named Stake.us and several suppliers. Pragmatic Play even confirmed it would no longer supply sweeps casinos at all.

Why This Matters Nationally

California is not a side market. Independent estimates put the state at roughly one-sixth of US sweeps casino purchases. If AB 831 becomes law, it will have an impact on the whole sector.  Montana, Connecticut and New Jersey have all banned sweepstakes casinos recently, while New York and Nevada have taken a hard line using existing laws, but the proposed Californian ban will hit the sector harder than any of those.

The Legislature has adjourned for the year. Newsom now has 30 days to sign or veto. Most watchers expect a signature. If that happens, operators, suppliers, and partners will have a narrow runway to unwind California activity before January 1, 2026. We’ll track the pen stroke, and we’ll break down the compliance to-do list the same day.

The bill will make running a sweepstakes casino a misdemeanor offence that carries a $1,000-$25,000 fine and up to one year in county jail for offenders. Crucially, it also targets those supporting sweeps casinos and holds them equally liable. So payment providers, geolocation providers, games providers and affiliates could all find themselves in hot water if they support a sweepstakes casino that knowingly operates in California once the legislation passes.

In truth we don’t expect that to happen. Sweeps casinos have been banned in a number of states of late, and the casinos have complied with the new regulations in all cases and restricted access to the state or limited players to free play only with Gold Coins. It’s the Sweeps Coins, which can be redeemed for real prizes or cash later on, that are the truly contentious part for most states, so even in California there is a chance that operators will continue to offer a pure social casino experience.