California Introduces Bill To Rid State of Sweepstakes Casinos

Many states are moving toward outlawing sweepstakes casinos, and California can now be added to that list.

Howard Glaser, the Global Head of Government Affairs at Light & Wonder, made a LinkedIn post detailing this news, saying the following:

“A bill introduced today with the backing of the California Nations Indian Gaming Association follows similar lines as the New York legislation passed unanimously this week, making it unlawful to facilitate or promote the operation of illegal online sweepstakes casinos by any “financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate."

The bill, AB831, has had some proposed amendments. It was changed up by Assemblyman Avelino Valencia, and the new law around these would result in a misdemeanor to operate, promote, and support sweepstakes games and casinos.

More About the Bill

This bill has been backed by the California Nations Indian Gaming Association (CNIGA).

As mentioned, it would be unlawful and it would pertain to financial institutions, payment processors, geolocation services, gaming content suppliers, platform providers, and media affiliates. Additionally, there's language that could lead to celebrity endorsers facing potential legal liability. This comes as individuals like Drake, Paris Hilton, and Ryan Seacrest have endorsed sites like Stake, WOW Vegas, and Chumba Casino.

In California, gambling is currently limited to just tribal nations, and sweepstakes casinos are somewhat of a workaround to that system.

Victor Rocha, the conference chair of the Indian Gaming Association, had quite an eye-popping statement regarding sweepstakes casinos, saying, "If the Vampire Squid called Sweepstakes Gambling insists on sticking its blood funnel into California, we will chop it off."

Social and Promotional Games Association Responds

On Monday, the Social and Promotional Games Association, a group that lobbies on behalf of sweepstakes casinos, released a statement.

The group called it a "backroom ban," and it was made possible by a “controversial ‘gut and amend’ maneuver” as the legislative deadline approached.

“This isn’t how sound policy gets made,” a spokesperson for the SPGA said. “A last-minute effort to outlaw legal digital games, without public debate, expert input, or economic analysis, sends a chilling message to entrepreneurs, innovators, and investors across the state.

“California voters didn’t sign on for backroom deals dictated by powerful political interests. With the state facing wildfires, a housing crisis, and a full federal assault on Californians’ rights, it’s astounding that any lawmaker would make banning mobile games a priority.”

The group also asked Governor Gavin Newsom to veto AB831.

Other Sweepstakes Bills

This bill, AB831, comes as other states have introduced legislation.

This includes New York, Connecticut, Louisiana, Mississippi, New Jersey, and Montana.

Right now, New York has sent a bill, SB 5935, to be signed by Governor Kathy Hochul.

There's also Connecticut, which is finalizing a bill

• Louisiana Governor Jeff Landry vetoed the bill to ban them, but cease-and-desist letters were sent. Mississippi also did that.
• Then, there's New Jersey with A 5447 and the companion bill, S4282, which is advancing.
• Finally, Montana's SB555 passed, and sweepstakes casinos will be effectively banned as of Oct. 1, 2025.