California’s sweepstakes casino ban is in full force, and you’re encouraged to report any illegal sweepstakes casino to the state. As of Jan. 1, 2026, sweepstakes casinos and sweepstakes sportsbooks are illegal across the state.

Gov. Gavin Newsom signed Assembly Bill No. 831 into law on Oct. 11, 2025. The legislation amended California law to target online sweepstakes games that use virtual currencies to mimic casino gambling or sports betting.

That means sweepstakes gambling brands such as Stake, Thrillz, Chumba Casino, LuckyLand Slots, Pulsz, Fliff Sportsbook, Cheddr, Fortune Coins, and others can no longer legally offer dual-currency sweepstakes gambling products to Californians.

What Are Online Sweepstakes Casinos?

The typical sweepstakes casino model features two distinct types of virtual currency. The currencies are used to play casino games or games that mimic or simulate gambling.

Under California’s law, this dual-currency model is no longer a loophole.

For years, sweepstakes casinos circumvented California gambling law.

What are Sweeps Coins?

The first virtual currency is usually gold coins, used in so-called “free-to-play games.” They have no cash redemption value.

The second is sweepstakes coins, which may be awarded as a “bonus” with the purchase of gold coins, through promotional activities, or as complimentary rewards.

Players can use sweepstakes coins to participate in games or contests that may be redeemable for real-world prizes, cash, or cash equivalents.

The sweepstakes model can also create other risks for consumers. One former sweepstakes player claimed in a 2025 lawsuit that Affirm gave him predatory loans for gambling.

Growing U.S. Sweepstakes Crackdown

The California sweepstakes ban was extraordinarily popular among lawmakers. No lawmaker voted against the bill during the legislative process. Final Assembly concurrence was 79-0, and the Senate passed the bill 36-0.

Within California, Los Angeles has sued sweepstakes leader Stake.us for alleged illegal gambling.

California is part of a broader state-level crackdown on sweepstakes casinos.

In 2025, states including New Jersey, Montana, and Connecticut also moved against sweepstakes-style online gambling. New Jersey approved a law prohibiting the “sweepstakes model of wagering,” Montana expanded its illegal internet gambling law, and Connecticut enacted new restrictions on sweepstakes and promotional drawings involving simulated online casino gaming or sports wagering.

The state of Washington already had a ban on sweepstakes casinos.

States such as Arizona, Louisiana, Maryland, Michigan, Mississippi, and New York have also sent cease-and-desist orders against the sweepstakes casino industry.

Why Sweepstakes Casinos Are Unsafe

Any form of online gambling can be addictive. While sweepstakes casinos and sportsbooks may operate differently from traditional online casinos or sportsbooks, they can still create similar risks for users.

The danger is not simply that these platforms are “unregulated.” It is that they can make gambling look casual, social, or risk-free while still pushing users toward repeated spending.

Sweepstakes casinos often have fewer safeguards than regulated gambling platforms. They may lack meaningful age verification, enforceable self-exclusion, clear limits, or addiction support.

In fact, some sweepstakes casinos have sent users to the wrong addiction support groups. That’s because these companies often claim they are not gambling companies, even though their products mimic gambling and can create gambling-related harms.

Connecticut’s enforcement action against High5Games showed how serious this can get. State officials accused the company of operating an illegal online casino and said some self-excluded users had spent money on the platform.

Sweepstakes casinos have also used celebrities and influencers to promote their products and present a friendly, sanitized version of online gambling to consumers.

Penalties Under California Sweepstakes Ban

The California law primarily targets operators and companies that support sweepstakes casinos.

A person who violates the California sweepstakes casino ban can be convicted of a misdemeanor. Consequences include a fine of $1,000 to $25,000, up to one year in county jail, or both.

Supporting the sweepstakes casino industry can also create legal exposure in California.

The law makes it unlawful for any financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly and willfully support, directly or indirectly, the operation, conduct, or promotion of an online sweepstakes game in California.

California’s law does not ban ordinary promotional sweepstakes. It also does not make games illegal if they do not award cash prizes or cash equivalents.

California Ban Hits Sweepstakes Casino Market

Sweepstakes casinos have been around for years, but their use surged as online gambling became increasingly normalized in the U.S.

Many sweepstakes casinos offered versions of sports betting, including moneylines, spreads, and player props.

According to gambling industry sources, the sweepstakes casino market grew sharply from 2019 to 2022, reaching $3.1 billion in 2022. 

California was one of the most important states for these companies because it does not have legal online casino gambling or legal online sports betting.

That made sweepstakes casinos especially attractive to operators looking to reach Californians without going through the political and regulatory process required to legalize online gambling.

California Sweepstakes Casino Ban FAQ

Are Sweepstakes Illegal in California?

Sweepstakes casinos and sweepstakes sportsbooks are illegal in California as of Jan. 1, 2026.

However, ordinary sweepstakes contests are still legal in California if they follow consumer-protection rules and avoid becoming an illegal lottery or casino-style gambling product.

A lawful sweepstakes contest generally must offer a truly free, equal-chance method of entry.

Is California Banning Online Casino Gambling?

California already prohibits online casino-style gambling. AB 831 updated state law to specifically target online sweepstakes casino models that use dual currencies and cash-equivalent prizes.

California does allow online horse-race betting through licensed advance deposit wagering operators.

Daily fantasy sports are in a much more legally vulnerable position. In July 2025, the California Attorney General issued an opinion saying California law prohibits daily fantasy sports games offered to players physically located in the state. The opinion said those games constitute wagering on sports in violation of Penal Code section 337a.

California does not sell lottery tickets online or through an app, and lottery courier or reseller services are not permitted. Lottery tickets must be purchased in person from authorized retailers.

Can I Gamble Online If I Live In California?

If you are physically located in California, you cannot legally use online casinos or online sportsbooks.

The clearest legal online wagering exception is licensed horse-race betting.

DFS platforms and federally regulated prediction-market platforms are legally disputed categories. California’s Attorney General has said DFS is illegal, and California tribes have challenged the legality of prediction sportsbooks such as Kalshi and Polymarket.

If you are a California resident and travel to a state with regulated online sports betting, online casino gambling, or online lottery gambling, you may be able to gamble online while physically located in that jurisdiction.

Online gambling laws generally depend on where the user is physically located, not simply where the user lives.

Why Is DraftKings Banned In California?

DraftKings Sportsbook is not specifically banned by name in California. But online sports betting is illegal (and unpopular) in California, so DraftKings Sportsbook does not operate there.

DraftKings has lobbied for sports betting legalization in California, but those efforts have so far failed.

DraftKings has offered fantasy sports contests in California through DraftKings Fantasy, but the legal position of DFS became much riskier after the California Attorney General’s 2025 opinion.

Did California Ban PrizePicks?

The California sweepstakes casino ban did not specifically target PrizePicks because PrizePicks is a daily fantasy sports platform, not a sweepstakes casino.

However, that does not mean PrizePicks is clearly legal in California. The California Attorney General’s 2025 opinion said daily fantasy sports contests violate state law when offered to players physically located in California.

What’s Next After The California Sweepstakes Casino Ban?

Many sweepstakes casinos are expected to avoid California because of the criminal exposure created by AB 831.

However, some offshore or less compliant operators may continue trying to reach Californians despite the ban.

Others may shift to so-called social casino gambling. This model can look similar to sweepstakes gambling, but the in-app currency generally cannot be redeemed for cash or prizes.

That does not mean social casino products are harmless. They can still normalize slot-style play, encourage repeated spending, and create gambling-like behavior among users.

The NFL Super Bowl Slots app is one example of a social casino product. Users can buy virtual currency to engage in simulated slot gambling, but the in-app currency cannot be redeemed for anything of value.