September 18, 2025

California Assembly Approves Ban on Sweepstakes Casinos

Sacramento, California, September 18, 2025

News Summary

The California Assembly has passed bill AB 831 with a unanimous 63-0 vote, moving to ban sweepstakes casinos in the state. This decision comes as a response to concerns from federally recognized tribes about the impact of these casinos on traditional tribal gaming. Governor Gavin Newsom is expected to sign the bill into law as part of a growing trend across the U.S. to regulate sweepstakes casinos amidst scrutiny over consumer protection and operational transparency.

Sacramento, California — The California Assembly has unanimously approved a bill, AB 831, aimed at banning sweepstakes casinos within the state. The bill, which passed with a 63-0 vote, is anticipated to be signed into law by Governor Gavin Newsom. The governor has shown support for federally recognized tribes, which have been vocal about the potential harm sweepstakes casinos pose to traditional tribal gaming operations.

This legislative action comes amid heightened regulatory scrutiny of sweepstakes casinos across the United States. In New York, Attorney General Letitia James has taken steps to ban these establishments by enforcing a cease-and-desist order on several operators due to consumer protection concerns. Similarly, in New Jersey, initiatives have been introduced to curb the expansion of sweepstakes casinos, reflecting a growing trend towards regulation in various states.

The move by California aligns with broader regulatory trends that raise alarm about sweepstakes casinos, primarily due to a significant absence of audits and oversight. Regulators have pointed to this lack of scrutiny as a reason for concern regarding player protections, as these establishments operate under federal sweepstakes laws but are typically subject to differing state regulations.

Despite the potential negative impact on the industry’s revenue in California, which is projected to exceed $14 billion this year, experts suggest there might be opportunities for operators in states with smaller tribal gaming markets. Some companies may seek partnerships with regulated real-money casinos to mitigate potential losses resulting from the ban.

As of 2025, the United States is anticipated to have approximately 169 active sweepstakes casino platforms. The industry has witnessed rapid growth, with an annual increase of about 31%, fueled by evolving regulations and market dynamics. Approximately 95% of U.S. adults currently have access to sweepstakes casinos, owing to their structured compliance with federal laws.

While sweepstakes casinos continue to thrive in states with more lenient restrictions, they also face challenges in states like Washington, Idaho, and Montana, where such operations are heavily regulated. The marketplace is diverse, consisting of well-established platforms and innovative newcomers focused on transparency and customer satisfaction.

Players highlight essential features that influence their choice of platforms, such as redemption reliability, quality of customer support, and the variety of games available. Surveys have indicated that these elements are prioritized significantly more than promotional offers, indicating a shift in player expectations and preferences.

The landscape of sweepstakes casinos is also evolving, shaped by advancements in technology. Innovations such as blockchain verification and artificial intelligence are starting to take root, enhancing operational transparency and player trust. Studies show that platforms emphasizing swift and straightforward redemption processes are able to maintain higher rates of player retention and community engagement.

This decisive move by California could herald a new era in the regulation of sweepstakes casinos across the U.S. As scrutiny intensifies, industry stakeholders may need to reassess their strategies to comply with emerging legal frameworks and shifting consumer expectations. The emphasis on player protections, transparency, and reliable services is likely to define the future of the gaming landscape in the United States.

Deeper Dive: News & Info About This Topic

HERE Resources

Additional Resources

Author: STAFF HERE CLINTON

The CLINTON STAFF WRITER represents the experienced team at HEREClinton.com, your go-to source for actionable local news and information in Clinton, Laurens 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 Festival of Discovery, Clinton Community Day, and performances at the Whitten Center Amphitheater. Our coverage extends to key organizations like the Clinton Area Chamber of Commerce and the Laurens County Historical Society, plus leading businesses in manufacturing and education that power the local economy such as Milliken & Company and Presbyterian College. 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, and HERESpartanburg.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.