AB 831 Now Enforceable
California's Assembly Bill 831, signed by Governor Gavin Newsom in October 2025, took effect on January 1, 2026, formally banning all dual-currency sweepstakes casinos in the state. The law makes California the largest market in the country to shut down the sweepstakes casino model, eliminating what was previously the industry's most significant revenue source.
AB 831 goes further than most state bans by extending criminal liability beyond operators to supporting entities. Payment processors, game suppliers, marketing affiliates, and even celebrity promoters who advertise sweepstakes platforms could face legal consequences under the new law.
Penalties and Scope
Violations of AB 831 are classified as misdemeanors, carrying fines of up to $25,000 and up to one year in county jail per violation. The broad scope of liability means that companies providing games to sweepstakes platforms, such as Evolution and Pragmatic Play, could face prosecution for continuing to serve California-facing operators.
The law was driven primarily by tribal gaming coalitions, including the San Manuel Band of Mission Indians, the Soboba Band of Luiseno Indians, and the California Nations Indian Gaming Association (CNIGA). These groups argued that sweepstakes casinos were operating unregulated gambling operations that competed directly with their licensed facilities. Some tribal interests are now exploring legal action to recover profits that operators earned from California consumers before the ban took effect.
Operator Exodus
Several operators began withdrawing from California before the January 1 deadline. Dara Casino, Carnival Citi, Ruby Sweeps, and High 5 Casino all ceased California operations in late 2025. Major game providers Evolution and Pragmatic Play pulled their content from platforms serving California users, further reducing the available gaming libraries.
VGW, the operator behind Chumba Casino, LuckyLand Slots, and Global Poker, has taken a different approach. The company may continue operating Gold Coin-only games in California, arguing that a purely free-play model without a redeemable currency falls outside the scope of AB 831. Legal experts are divided on whether this interpretation will survive enforcement scrutiny.
Market Consequences
California's ban has had outsized effects on the national sweepstakes casino market. With a population of nearly 39 million, the state represented a disproportionate share of total industry revenue. Analysts estimate that the loss of California alone could account for roughly 20% of the projected $1 billion revenue decline the industry faces in 2026.
The law has also created a chilling effect on operators considering expansion. New platforms launching in 2026 face a shrinking addressable market, as states continue to adopt bans or initiate enforcement actions. The combination of California's ban, New York's SB 5935, and pending legislation in Indiana and Maryland means that four of the five most populous US states are either already off-limits or moving in that direction.
Looking Ahead
Enforcement of AB 831 will be closely watched. Whether California authorities pursue action against game suppliers and marketing affiliates, rather than just operators, could set a precedent that shapes the industry's approach to compliance nationwide. The tribal coalitions that drove the legislation have indicated they intend to push for aggressive enforcement.