California Sweepstakes Casino Ban on the Cusp of Becoming Law

The looming ban forms part of a broader effort to more clearly define what is and isn’t legal gambling in California. 

Geoff Zochodne - Sports Betting Journalist at Covers.com
Geoff Zochodne • Senior News Analyst
Sep 12, 2025 • 18:37 ET • 3 min read
Photo By - Imagn Images.

The California State Legislature has officially decided to slam the door on sweepstakes casino operators in the state. 

Key Takeaways
  • The California State Assembly passed A.B. 831, which bans sweepstakes casinos and sportsbooks, sending the bill to Governor Gavin Newsom for approval.

  • The legislation prohibits not only sweepstakes operators but also support from entities like payment processors and media affiliates, aiming to curb unregulated gambling.

  • Backed by Native American tribes, the bill could help reinforce tribal gaming exclusivity and is part of a broader push to clarify and enforce California’s gambling laws.

Members of the California State Assembly voted on Friday to pass Assemblymember Avelino Valencia’s A.B. 831 by a unanimous, 63-0 vote. 

The legislation will prohibit the operation and offering of sweepstakes casinos and sportsbooks, as well as make it illegal for payment processors, media affiliates, and other entities to support sweeps.

A.B. 831 was amended into an anti-sweeps bill in the California State Senate, which then passed the legislation earlier this week. The Assembly voted on Friday to concur with the Senate's anti-sweeps amendments.

Now, with the approval by the Assembly, A.B. 831 can head to Gov. Gavin Newsom’s desk to be signed into law, to become law without a signature, or be vetoed.

If the bill becomes law, that would put a ban on sweepstakes casinos and sportsbooks in place in the most populous state in the U.S., a huge win for opponents of the sites and their “dual-currency" system of gambling. 

While a few states have banned sweepstakes casinos, such as New Jersey, and regulators in others have taken action against operators, California would easily be the largest jurisdiction to take a stand. It would also do so with support from the state’s casino-operating Native American tribes, who see sweeps as an unregulated and unwanted competitor to their businesses.

“Tribal gaming exclusivity, as granted by the voters of California, must be honored,” the California Nations Indian Gaming Association has said in a statement in support of the bill. “Allowing unregulated and predatory sweepstakes operators to bypass these regulations undermines that trust and the integrity of California’s gaming policies.”

The sweeps crackdown in California has been opposed by sweeps operators that have claimed it would criminalize a legal form of entertainment. Those operators sought instead a form of state regulation and taxation for their business.

However, the looming ban forms part of a broader effort to more clearly define what is and isn’t legal gambling in California. 

California’s attorney general said in July that paid daily fantasy contests are illegal, and the tribes have voiced their concerns about federally regulated prediction markets in the courts and to the U.S. Commodity Futures Trading Commission. Three California tribes have sued prediction markets Kalshi and Robinhood as well.

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Geoff Zochodne, Covers Sports Betting Journalist
Senior News Analyst

Geoff has been writing about the legalization and regulation of sports betting in Canada and the United States for more than four years. His work has included coverage of launches in New York, Ohio, and Ontario, numerous court proceedings, and the decriminalization of single-game wagering by Canadian lawmakers. As an expert on the growing online gambling industry in North America, Geoff has appeared on and been cited by publications and networks such as Axios, TSN Radio, and VSiN. Prior to joining Covers, he spent 10 years as a journalist reporting on business and politics, including a stint at the Ontario legislature. More recently, Geoff’s work has focused on the pending launch of a competitive iGaming market in Alberta, the evolution of major companies within the gambling industry, and efforts by U.S. state regulators to rein in offshore activity and college player prop betting.

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