A crackdown on sweepstakes casinos in California is drawing nigh.
- The California State Senate unanimously passed A.B. 831, a bill aimed at banning sweepstakes casinos and sportsbooks.
- The bill prohibits any individual or entity from supporting online sweepstakes gambling in California and includes penalties such as fines and jail time for violators.
- Supported by Native American tribes and gaming associations, the legislation now awaits approval from the Assembly before heading to Governor Newsom for signature.
On Monday, the California State Senate passed Assemblymember Avelino Valencia’s A.B. 831 by a 36-0 vote. The legislation would prohibit the operation and offering of sweepstakes casinos and sportsbooks.
A.B. 831 would also make it illegal “for any person, entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within the state,” a Senate analysis notes.
Anyone caught violating the new law could face fines and jail time.
“Many of these ‘sweepstakes’ operators are based offshore and function without proper oversight, avoiding requirements like consumer protections, responsible gaming safeguards, background checks, and tax compliance,” Valencia said in a statement on the bill.
A.B. 831 was amended in the Senate to become an anti-sweeps bill, and must now go back to the California State Assembly, where it originated, to get its changes approved. If they are, the legislation can then go to Gov. Gavin Newsom’s desk to be signed into law.
Victor Rocha, conference chair of the Indian Gaming Association, tweeted on Sept. 1 that his sources are saying there are "more than enough" votes in the Assembly to get A.B. 831 through, and that Newsom will sign the bill.
My sources tell me we have more than enough votes in the Senate & the Assembly. I’m also told Gov. Newsom will sign it when it gets to his desk. https://t.co/OSdzqmpP2o
— Victor Rocha (@VictorRocha1) September 2, 2025
The anti-sweeps bill was tweaked a few times by the Senate to clarify who is and isn't a target. Last week, it was updated again to ensure its provisions are not aimed at licensed cardrooms and the state lottery.
Furthermore, the legislation was amended to say that it does not "make unlawful game promotions or sweepstakes conducted by for-profit commercial entities on a limited and occasional basis as an advertising and marketing tool that are incidental to substantial bona fide sales of consumer products or services and that are not intended to provide a vehicle for the establishment of ongoing gambling or gaming."
The change appears to have been made to ease concerns about any effect the anti-sweeps bill would have on various corporate contests and rewards programs, a possible side effect that was raised by the sweeps industry.
At any rate, the Senate passing A.B. 831 is a significant step, and one that brings the proposed crackdown on online sweepstakes casinos and sportsbooks closer to happening.
The legislative attack on sweeps is intended to take out a form of online gambling that is not overseen by the state and that competes with authorized gambling operators, namely California’s casino-operating Native American tribes. A.B. 831 is even co-sponsored and supported by groups such as the Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA).
“The state’s voters have consistently shown their trust in Native American tribes to operate gaming facilities responsibly and ethically,” the Yuhaaviatam of San Manuel Nation said in a written argument in favor of the bill. “Allowing unregulated and predatory sweepstakes operators to bypass these regulations undermines that trust and integrity of California’s gaming policies.”
Sweeps have been a particular target of state legislators this year in the U.S.
The California Senate floor analysis noted the popularity of sweepstakes casinos “has surged in recent years,” and, citing research done by Eilers & Krejcik Gaming, said sweeps-related revenue has been rising as well.
Rushing to end the gold rush
“Capping off with a $3.1 billion reported revenue in 2022, the sweepstakes market is projected to hit revenue figures of over $8 billion by the end of 2024,” the Senate analysis said. “As sweepstakes casinos have risen in popularity, criticism about whether they are being operated in a legal manner has risen as well.”
The analysis noted that several states have taken legislative or regulatory action against sweeps, such as a ban in Connecticut and cease-and-desist orders in Louisiana.
“In short, as of July, 2025, a number of states have begun to explicitly prohibit online sweepstakes casinos, especially those that utilize a dual-currency system,” the document added. “With that said, online sweepstakes casinos remain operational in a majority of U.S. States, including California.”
The Senate analysis did point out that a crackdown on sweeps would come with some costs, such as for law enforcement and the courts system.
“[The California Department of Justice] notes that online sweepstakes providers may choose to cease their operations in the State, which would alleviate the department’s enforcement workload,” it says. “However, to the extent that enforcement action is necessary, DOJ notes these costs will likely be significant because enforcement actions against these providers are complex with difficult jurisdictional issues.”
Sweepstakes casinos are not the only form of online gambling that has been targeted by California regulators, lawmakers, and Native American tribes this year either.
California’s attorney general said in July that daily fantasy sports contests are illegal in the state, and tribes have voiced their opposition to federally regulated prediction markets in the courts and to the U.S. Commodity Futures Trading Commission (CFTC).
A.B. 831 takes specific aim at sweeps, though. And California is a significant market for those operators.
Not everybody loves it
There are opponents to the anti-sweeps bill, including a few California tribes and major sweeps operators. While their arguments failed to persuade the Senate, time will tell if they resonate in the Assembly.
The Social and Promotional Games Association, for example, has warned that "[d]isrupting an entire legal industry in less than two months without adequate debate, education, public outreach, and evidence supporting the proponent’s arguments seems extremely short-sighted and irresponsible.”
"We want to work collaboratively with the California Legislature on sensible legislation that creates a robust regulatory framework prioritizing consumer protection while simultaneously offering a new revenue stream for the state," sweeps company VGW has said.
