California has officially banned online sweepstakes casinos after Governor Gavin Newsom signed AB 831 into law, marking a decisive step in the state’s ongoing efforts to regulate online gaming.
The new law makes it illegal to facilitate or promote online sweepstakes casinos, extending enforcement beyond operators to include payment processors, affiliates, gaming content suppliers, and platform providers. The measure aims to shut down unregulated gaming models that mimic online casinos while operating outside state gambling laws.
AB 831 received strong backing from the California Nations Indian Gaming Association (CNIGA), which argued that sweepstakes-style games violate tribal gaming exclusivity established under state compacts. Tribal casinos in California hold exclusive rights to offer certain types of gaming in exchange for revenue sharing with the state.
Industry Pushback Over Economic Impact
Opponents, including the Social Gaming Leadership Alliance, claimed the ban would remove more than $1 billion in annual economic activity and could drive players toward offshore or unregulated markets. Despite that opposition, the bill cleared the legislature and was signed into law by Newsom, taking effect immediately.
Despite the economic concerns, the measure passed with broad legislative support and was signed into law by Newsom. The law takes effect immediately, giving regulators authority to enforce violations across the state.
California Joins Growing List of States Banning Sweepstakes Casinos
By signing AB 831, California joins Connecticut, Montana, Nevada, and New Jersey – states that have also banned online sweepstakes gaming in 2025.
The nationwide trend reflects mounting concern among lawmakers about consumer protection, tribal sovereignty, and unlicensed online gambling. The bans follow similar crackdowns, including New York’s 2025 enforcement action that forced 26 sweepstakes casinos to shut down statewide.
Tribal Lawsuit Over Card Room Gaming Continues
Separately, a California Superior Court dismissed a lawsuit filed by tribal gaming operators claiming that state card rooms offering house-banked table games violate tribal exclusivity.
The state Indian Gaming Association said it will appeal the ruling. The case was filed after the passage of SB 549, which granted tribes standing to sue over exclusivity disputes. The legal challenge highlights the ongoing tension between California’s tribal casinos and commercial card rooms, a debate that has shaped gaming policy for decades.
What’s Next for California Gaming Regulation
With AB 831 now law, California’s focus could shift toward regulated online sports betting and iGaming frameworks – but only under models that preserve tribal exclusivity.
Industry analysts say the ban clarifies the state’s position on unregulated online gambling while reinforcing a path forward that prioritizes consumer safety, tribal rights, and market integrity.