California's AB 831 sweepstakes casino ban takes effect

California's ban on online sweepstakes casinos took effect Jan. 1. Assembly Bill 831, by Assemblymember Avelino Valencia, passed both chambers without a dissenting vote and was signed by Gov. Gavin Newsom on Oct. 11, 2025.

The law adds Penal Code section 337o, making it unlawful to operate or support an online sweepstakes game, defined as one that uses a dual-currency system, simulates gambling such as slots, video poker, table games, bingo or sports wagering, and awards cash or cash equivalents. It also amends Business and Professions Code section 17539.1, so the ban can be enforced through civil actions as well as criminal prosecution.

Liability reaches past operators to payment processors, financial institutions, geolocation providers, game content suppliers, platform providers and media affiliates that knowingly and willfully help run or promote such games. Violations are misdemeanors punishable by up to a year in jail and fines of up to $25,000 per violation. Ordinary promotional sweepstakes tied to bona fide product sales remain lawful.

Tribal gaming interests backed the bill. The California Nations Indian Gaming Association argued that sweepstakes casinos "impinged on the exclusive tribal rights" to offer gaming in the state, while the Social Gaming Leadership Alliance urged Newsom to veto it, saying the industry had not been consulted.

Several major sweepstakes brands stopped serving California before the deadline, and game studios including Evolution and Hacksaw Gaming had already pulled titles from California sweepstakes sites in 2025.