Gov. Gavin Newsom signs California online sweepstakes ban into law
A piece of legislation that prohibits online sweepstakes casinos in California was signed by Gov. Gavin Newsom, placing a ban on the gaming vertical at the beginning of next year.
Newsom signed Assembly Bill 831, which prohibits the offering and promotion of sweepstakes gaming in the Golden State. AB 831 was signed by Newsom after the measure was passed on the Assembly floor vote by a 79-0 vote on Sept. 12, the final day of the first year of California’s two-year legislative session. AB 831 underwent amendments before its final approval with the bill garnering support from several tribes and trade groups.
Its supporters include the Yuhaaviatam of San Manuel Nation, the California Nations Indian Gaming Association, the Sports Betting Alliance and the California Chamber of Commerce. Under AB 831, online sweepstakes that offer a dual-currency system and payouts that resemble gambling are banned in California. The ban applies to both operators and suppliers. Before Newsom signed AB 831, the piece of legislation was opposed by the Social Gaming Leadership Alliance, founded by sweepstakes giant VGW.
Publishers Clearing House (PCH), recently acquired by social gaming company ARB Interactive, also voiced its opposition to a ban on online sweepstakes casinos in California. In a letter sent to the California Senate Appropriations Committee, PCH aligned itself with non-gaming brands that offer sweepstakes, including McDonald’s. ARB Interactive operates gaming platforms that offer dual-currency online gaming.
A ban on the dual-currency systems in California will go into effect on Jan. 1.
California adds growing list of sweepstakes bans
California joins Connecticut, Montana and New Jersey as states to officially make the operation of dual-currency online sweepstakes casinos illegal in 2025. New York is also considering a ban after Bill S05935A was passed by the state’s Assembly in June.
The bill applies the ban on online sweepstakes to entities that offer casino-style games with a cashout functionality, while sweepstakes that offer non-cash prizes remain legal. New York Gov. Kathy Hochul’s signature is the last step in enacting the piece of legislation.
https://sbcamericas.com/2025/10/14/newsom-signs-california-sweepstakes-ban/