California Bans Sweepstakes Casinos Starting 2026

The legislature agreed unanimously, and Governor Gavin Newsom made it official: sweepstakes casinos will no longer be available for Californians starting January 1, 2026. 

No Votes Against

Assembly Bill 831, a measure that enjoyed strong backing from the California Nations Indian Gaming Association (CNIGA), passed with zero opposing votes over the weekend.

CNIGA argued that sweepstakes casinos violated tribes’ exclusive right to offer gambling within the state. 

“This bill ensures that California’s laws around gaming remain consistent with the state’s constitution and the agreements made with tribal nations,” the group said in a statement.

For the sweepstakes industry, it’s a major setback. California’s population of more than 39 million people makes it the largest state yet to outlaw the platforms. 

Before this, the most significant action came from New York, where a similar bill is awaiting Governor Kathy Hochul’s signature. In Florida, legislation to ban sweepstakes casinos failed to advance earlier this year, offering the industry a brief reprieve.

SGLA Calls Vote “Incredibly Disappointing”

Not everyone supported California’s decision. The Social Gaming Leadership Alliance (SGLA), which represents sweepstakes operators, called on Newsom to veto the bill. The group cited a study by Seven Letter Insight showing that 85% of respondents wanted the state to update and regulate sweepstakes games instead of banning them.

“It is incredibly disappointing that the California Assembly decided to pass AB 831,” said SGLA executive director Jeff Duncan. 

“Beyond the fact that this bill would worsen economic disparities among California tribes, put California to the back of the line in terms of digital innovation in this space, and take away a popular form of entertainment for residents, it will immediately strip $1 billion out of the state’s economy.”

Duncan went on to “implore Governor Newsom to veto this bill and instead open the door for online social games” that would offer support to “economically disadvantaged tribal nations and the state’s economy” while placing California as a “leader in next-generation gaming technology.”

Despite that plea, Newsom signed the measure into law without hesitation. The move signals the state’s clear stance that sweepstakes casinos, often operating in a legal gray area by using virtual coins instead of cash wagers, will not be allowed to continue.

As of January, California players will need to look elsewhere for social casino gaming, and the industry will lose access to its largest market yet.