California bans social sweepstake games

California bans social sweepstake games in a move to curb in on sweepstake gaming legislation and on how to define and regulate social gaming. California is one of the largest states in the US, and is about to loose an estimated 200-300 million a year in tax revenues. Cutting the budget for the state by some margin. 

Sweep stake casino return

What has happened?

California Governor Gavin Newson has signed a bill AB 831 banning the promotion of sweepstakes in social online casinos or games. Although passed by the California Senate and Assembly, the move has drawn up some criticism from various groups. The SGLA,Social Gaming Leadership Alliance, has voiced concern that the decision to ban the games outright, will squeeze the economic household even further. 

Several tribal nations,including the Kletsel Dehe Wintun Nation, Sherwood Valley Rancheria of Pomo Indians, Mechoopda Indian Tribe of Chico Rancheria and Big Lagoon Rancheria, opposed strongly, as they are arguing, the move is undermining their tribal sovereignty.

California bans sweepstake games

What role are tribal groups playing in California?

Pro and contra within the Tribes. Most tribes have supported the ban via AB 831, and felt, sweepstake platforms in the way run currently, undermining their role in the business. Many tribes has some sort of monopoly on certain games, and sweepstakes are giving a loophole to bypass those. 

Opposition is coming from smaller tribal groups, arguing, the move is excluding players from entering a safe digital arrangements. 

FAQs California Sweepstake promotions

Economic value of casino in California

There is a strong argument amongst tribals , arguing that the bill was closing loopholes allowing sweepstake casinos to run their platform like online casinos. Tribes games contribute with tens of billions in taxing revenue to the economy in California. The constitution is allowing tribes to run land based sweepstakes casinos with real money input. This right on their own lands is violated and sovereignty is cut, some argue.

What is the next step for Sweepstake casinos in California?

With the AB 831 Bill signed by Governor Gavin Newson, the effect on the ban will start 1st January 2026. Tribals and land-based casinos have time to oppose the bill, and claim their sovereignty. However, it is more likely and feasible, that operators need to come up with ways to implement new ways to entertain via sweepstake casinos. Partnerships need to be altered for some, but for land-based tribal Casios, competition in revenue with disappear.