September 18, 2025

California Assembly Bans Sweepstakes Casinos

Sacramento, California, September 18, 2025

News Summary

The California Assembly has unanimously passed a bill to ban sweepstakes casinos in the state with a 63-0 vote. This decision falls within a broader trend of increasing regulatory scrutiny surrounding sweepstakes casinos across the United States. The bill, known as AB 831, is expected to be signed by Governor Gavin Newsom, who supports regulating the gaming industry with an emphasis on consumer protection. With rising concerns about player safety and regulatory oversight, California’s legislation could significantly impact the sweepstakes casino market.

Sacramento, California – The California Assembly has unanimously approved a bill to ban sweepstakes casinos in the state, passing with a vote of 63-0. The bill, known as AB 831, is anticipated to receive the signature of Governor Gavin Newsom, who has indicated support for federally recognized tribes, a factor that may influence the decision-making process regarding gaming regulations.

This legislative action is part of a broader trend of increasing regulatory scrutiny surrounding sweepstakes casinos across the United States. Recently, New York’s Attorney General, Letitia James, implemented a cease-and-desist order against several sweepstakes casinos, emphasizing serious consumer protection concerns. Similarly, New Jersey has seen legislative setbacks for the sweepstakes casino sector, indicating a growing movement among state regulators to tighten oversight.

As concerns about player protection rise, regulators have pointed out the absence of audits and the lack of regulatory oversight within the sweepstakes casino industry. Many see these factors as detrimental to consumer safety, prompting states like California to take a firm stance against these often-less-regulated gaming operations.

The sweepstakes casino market is projected to generate over $14 billion in gross revenue this year, marking a year-over-year growth of approximately 31%. This sector’s growth can be attributed to new regulatory measures and evolving market dynamics that create access for players. Currently, about 95% of U.S. adults can engage with sweepstakes casinos without major legal challenges, due to compliance with federal sweepstakes laws. However, some states, including Washington, Idaho, and Montana, impose stricter state-level restrictions on these operations.

California’s legislative ban on sweepstakes casinos could lead to a significant impact on the overall industry revenue. Nevertheless, it may open avenues for rebuilding in states where tribal gaming operations are less prominent. Some operators may seek partnerships with regulated real-money casinos as a potential alternative to counterbalance the projected losses stemming from California’s actions.

The evolving landscape of the sweepstakes casino industry consists of various platforms, from established market leaders to innovative newcomers focused on delivering player satisfaction and trust. Key features that players value include reliable redemption processes, quality customer support, and a diverse game selection. Interestingly, these attributes often take precedence over mere promotional offers, indicating a shift in player priorities.

Technological advancements, such as blockchain verification and artificial intelligence, are also shaping the future of the sweepstakes casino business model. Evidence suggests that platforms that emphasize transparency and quick redemption processes tend to enjoy heightened player retention rates and stronger community engagement.

As of 2025, it is estimated that there are approximately 169 active sweepstakes casino platforms operating across the United States. With the increasing restrictions and regulatory checks, the market faces both challenges and opportunities. While certain states are tightening regulations, others may still provide fertile ground for growth and adaptation within the gaming sector.

The actions taken by the California Assembly underscore a pivotal moment in the regulatory landscape surrounding sweepstakes casinos. As more states join the movement for stricter oversight, the future of sweepstakes casinos remains uncertain, with operators and players alike watching closely for what these legislative shifts will bring.

Deeper Dive: News & Info About This Topic

HERE Resources

Additional Resources

Author: STAFF HERE CHARLESTON

The CHARLESTON STAFF WRITER represents the experienced team at HEREcharleston.com, your go-to source for actionable local news and information in Charleston, Charleston County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Spoleto Festival USA, Charleston Wine + Food Festival, and the MOJA Festival. Our coverage extends to key organizations like the Charleston Metro Chamber of Commerce and the Charleston Museum, plus leading businesses in tourism and maritime industries that power the local economy such as South Carolina Ports Authority and the Charleston Visitor Center. As part of the broader HERE network, including HEREaiken.com, HEREbeaufort.com, HEREchapin.com, HEREcharleston.com, HEREclinton.com, HEREcolumbia.com, HEREgeorgetown.com, HEREgreenwood.com, HEREgreenville.com, HEREhiltonhead.com, HEREirmo.com, HEREmyrtlebeach.com, HEREnewberry.com, HERErockhill.com, HEREspartanburg.com, HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, and HEREsanantonio.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.