Sweepstakes casinos might be getting kicked out of California. 

• Online sweepstakes casinos are under legal pressure

• California has passed anti-sweepstakes Assembly Bill 831 

• Chumba Casino, Global Poker and others face being banned 

In a shock move, California is pushing to ban sweepstakes casinos. 

This is bad news for gamers living in the Golden State, many of which have been hooked on these sites as far back as the COVID-19 pandemic. 

California’s anti-sweepstakes movement comes following increased legal scrutiny of sweepstakes casinos. 

Connecticut and Montana have already banned sweepstakes casinos in 2025, and it appears as though California, as well as a growing number of other states, will be joining the list. 

California Doesn’t Want Sweepstakes Casinos Operating There 

There was absolutely no debate over Bill AB 831 in the Assembly, which passed 63-0 last month, just three days after the Senate passed it with a 36-0 vote. 

The bill itself has now been handed over to Governor Gavin Newsom’s desk, who will officially outlaw sweepstakes casinos from the state for good if he, indeed, puts pen to paper. 

Newsom could technically veto the bill, but the expectation is that he will sign it and sweepstakes casinos will have to wave goodbye to California, a state where they’ve performed exceptionally well since 2020, raking in huge amounts of money. 

The reason behind California politicians clamping down on online sweepstakes casinos is that these sites claim to be non-gambling platforms, yet they allow players to purchase virtual ‘Sweeps Coins’. 

These coins can then be redeemed for prizes if you collect enough of them across the different games, such as slots and roulette, with most users doing this on Apple or Android. 

Prizes typically include cash transfers and gift cards, so sweepstakes casinos are, effectively, using a legal loophole to let players gamble, even though they’re not allowed to bet real money. 

California isn’t happy about this, which is why they’ve launched an attack on these sites since the summer. 

Sweepstakes Casino Execs Beg Governor Newsom to Veto the Bill 

All of this has got sweepstakes casino executives panicked. 

Members of the Social Gaming Leadership Alliance (SGLA) sent a letter to Governor Newsom at the end of September, labeling the bill a “misguided, rushed prohibition” that would “destroy a thriving $1 billion California industry”, while also warning him that booting sweepstakes casinos out of California would mean the state misses out on at least “$200-300 million annually in new tax revenue.” 

It’s certainly true that the California sweepstakes casino market is huge, so whether Newsom is happy to let that tax revenue go remains to be seen. 

There is, of course, a chance that he will opt to veto the bill, but it will come down to priorities. 

The state of California can either keep tax revenue coming in from this iGaming vertical, or it can decide that player protection and consumer safeguards come first. 

Until a final decision is made, you can expect the sweepstakes executives at Virtual Gaming Worlds, ARB Interactive, and several of the other big social gaming companies to keep pushing for this bill to be reversed. 

Ruby Sweeps Exits California Sweepstakes Market, Following 

With all signs pointing to California banning sweepstakes casinos, another one of the popular sites, Ruby Sweeps, has preemptively exited the state. 

They follow MegaBonanza, Hello Millions, PlayFame, and SpinBlitz, some of the other popular sweepstakes casinos on SweepsLounge who decided to leave California back in the summer. 

It’s all about legal protection, with these sites deciding to leave early to avoid any potential lawsuits or penalties that may come further down the line.

At the same time, several suppliers of sweepstakes casino games, including Playtech and Evolution, have removed their games from sweepstakes casino sites still operating in the Golden State. 

It’s a mini exodus of both casinos and the game suppliers, with the remaining ones set to get wiped out by Governor Newsom if he decides to pass the bill.  

Players Show Support for Social Gaming in California

In response to California’s anti-sweepstakes movement, the SGLA decided to conduct a nationwide poll, with an oversample of Californians, to see how they felt about the proposed AB 831 bill. 

The survey saw 85% agree that California should modernize and update laws to regulate and tax online social gaming, while 77% believe that online sweepstakes casinos should be allowed to keep operating. In total, only 6% said that sweepstakes casinos should be banned. 

Interestingly, California voters and gamers are overwhelmingly in favor of social gaming and the sweepstakes casinos attached to it. And if the bill officially makes it into law, there will be plenty of backlash. 

A Pivotal Moment in Sweepstakes Casino History 

California’s Assembly Bill 831 is, arguably, the biggest moment yet for sweepstakes casinos. 

If it makes it into law, sweepstakes casinos will lose a big source of revenue and their player counts will also take a serious hit. 

However, even though the bill itself has made it all the way to Governor Newsom’s desk, there’s still no guarantee it will be passed. 

The process hasn’t been straightforward and so sweepstakes operators, along with California’s many casino players, will have to wait patiently to see what happens.