California Bans Sweepstakes Gambling: New Law Targets 'Dual Currency' Operations
California has joined the growing list of states clamping down on sweepstakes games. Governor Gavin Newsom has signed Assembly Bill 831 into law, prohibiting sweepstakes and contest-style games across the state. The new law, set to take effect on January 1, 2026, has received overwhelming support from the state legislature and tribal gaming interests. AB 831, which passed with unanimous votes from both the California Senate and Assembly, imposes penalties of up to $25,000 or one year in county jail for violators. The law targets 'dual currency' gaming operations that have long operated in a legal gray area. These operations use virtual credits or 'sweeps' to facilitate games, often skirting existing laws. The Social Gaming Leadership Alliance (SGLA) opposed the bill, but it found strong support from tribal gaming interests. California's move follows similar bans in Montana, Connecticut, and New Jersey, indicating a national trend towards stricter regulation of sweepstakes games. Meanwhile, in New York, an anti-sweepstakes bill awaits Governor Kathy Hochul's approval, and Nevada is considering its own version, S.B. 256. With California's new law, the landscape of sweepstakes games is set to change significantly. As more states follow suit, the industry may face increased scrutiny and regulation. The full impact of these changes will become apparent in the coming years.
