California’s sweepstakes casino industry was effectively decimated this weekend, when Senator Gavin Newsom signed Assembly Bill 831 into law. The law, which bans online casinos in the state, will go into effect January 1, 2026.
Not all sweeps casinos are waiting until January 1st to exit the state. High 5 Casino pulled out of California in September, a proactive move against mounting legal pressures caused by AB 831. Ruby Sweeps, Carnival Citi, and Dara Casino have also ceased operations in California, with other casinos likely to follow.
In addition to impacting sweepstakes casinos, the law targets companies that support casinos including software developers, payment providers, and banking institutions. Any company acting in violation of the law can face fines of up to $25,000 or up to a year in county jail.
Leading casino game developer Pragmatic Play chose to pull out of the U.S. sweepstakes casino market entirely in September, in part due to AB 831 as well as an ongoing lawsuit with Stake.us. Pragmatic Play joins other companies like Light & Wonder, who has been outspoken against sweepstakes casinos.
So, what does this mean for sweeps players in the Golden State? Players are urged to cash out any eligible redemptions and close their accounts as soon as possible, or risk forfeiting their winnings. There’s no guarantee that sweepstakes casinos will announce their closure date in advance, so players may be left with little notice especially from smaller casinos.
A brief history of Assembly Bill 831
AB 831 has had both players and casino operators on edge since the California State Assembly voted overwhelmingly in favor of it on September 12, 2025. The bill was initially proposed by California Assembly Member Avelino Valencia in June of this year.
Newsom had 12 days to either sign or veto the law, which would have automatically gone into effect if he had failed to do so. He passed the bill one day before the deadline.
AB 831 was met with protest by the Social Gaming Leadership Alliance (SGLA), who sent a letter to Newsom on September 25th calling it a “misguided, rushed prohibition” that “chooses destruction over opportunity.”
However, others have voiced their support of the bill, including California’s tribal gaming operators who feel that sweepstakes casinos violate their exclusive gaming rights in the state. Other supporters claim the new law protects players from unregulated casino operators.
California is now the ninth state to pass legislation banning sweeps casinos, and also the largest one with a population of more than 39 million people. The ban follows in New Jersey’s footsteps, when Governor Phil Murphy passed its own law banning sweepstakes casinos in August.
It’s unclear yet what kind of financial effect this will have on California, but the state is facing the loss of $1 billion in annual revenue. Last year, California accounted for about 17% of the total sweepstakes casino revenue in the U.S.
