Sweepstakes Casinos in California

Online sweepstakes casinos, the apps and sites that simulate casino games and let players redeem a second virtual currency for cash prizes, have been illegal to operate in California since January 1, 2026, when Assembly Bill 831 took effect.

What AB 831 bans

California's governor signed AB 831 on October 11, 2025, as Chapter 623 of the Statutes of 2025. The law adds Penal Code section 337o, which makes it unlawful for any person or entity to operate, conduct or offer an online sweepstakes game in California. It targets games that mimic casino-style gambling or gambling-themed games, such as slots, poker, bingo, sports betting or lotteries, by using a "dual-currency system of payment." That system typically offers an entertainment currency (like "gold coins") that players buy or receive to play, and a redeemable virtual currency (like "sweeps coins"), often given away free or as a bonus, that can be won and turned into cash or cash-equivalent prizes.

Operating or promoting these games is a misdemeanor punishable by a fine of $1,000 to $25,000, up to a year in county jail, or both. The prohibitions also extend to certain service providers, including financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers and media affiliates that knowingly and willfully support these games in California.

What changed for players

The penalties in section 337o are aimed at operators and the businesses that support them, not at individual players. In practice, the change for players is that dual-currency sweepstakes platforms are no longer permitted to offer their games in California, so a site that still does so is operating outside state law and outside any state oversight.

The law does not reach everything with a casino theme. Social casino games that award only virtual coins, points or in-game items that cannot be redeemed for cash or cash equivalents fall outside its definition. It also excludes licensed gambling enterprises, the California Lottery and limited promotional sweepstakes that businesses run alongside the sale of ordinary products.

How to check a game

If you use these apps in California, a few checks help:

• Read the terms: a game that sells one currency and lets you redeem another for cash or gift cards uses the dual-currency model the law bans.
• Confirm that the game offers no cash or cash-equivalent prizes if it claims to be a social casino game.
• Check whether the site excludes California residents in its terms or blocks California locations.
• Read the text of Penal Code section 337o on the California Legislature's website rather than relying on an operator's own description.

Confusion between social casino games and sweepstakes casinos persists, and laws in this area change quickly. This article is general information, not legal advice; players with questions about a specific game would do well to consult current official California statutes and guidance from the Attorney General's Bureau of Gambling Control. Anyone who needs help with gambling can call 1-800-GAMBLER (1-800-426-2537).