California Turns Up the Heat on Sweepstakes Casinos
California threw a haymaker at sweepstakes casinos with a new bill amending AB831. The state’s going after everyone involved, from the tech folks coding the games to the celebrities hyping them up.
The Opening Salvo
The bill builds on California’s long-standing ban on land-based sweepstakes gambling, now dragging that rule into the digital world.
It’s got teeth, too, aiming to hold accountable anyone in the supply chain: payment processors, geolocation providers, even media affiliates. For a state where casino gambling is a tribal exclusive, this feels like California saying, “Enough is enough.”
Nobody’s pushing this harder than the California Nations Indian Gaming Association. They see sweepstakes casinos as a slap in the face to their constitutional right to run the show on gambling. Victor Rocha, a big name in tribal gaming, didn’t hold back: “These platforms are unregulated, untaxed, and just gambling dressed up as something else.”
Some tribes aren’t exactly squeaky clean. The San Manuel Band of Mission Indians, for instance, has dabbled in sweepstakes to market their own casino. It’s a messy fight, and the tribes are playing for keeps.
Hollywood’s Caught in the Net
This bill isn’t just coming for faceless companies; it’s got its sights on big names. Drake, Paris Hilton, and Ryan Seacrest could find themselves in hot water for their deals with platforms like Stake and Chumba Casino.
Drake’s multimillion-dollar gig with Stake is already tangled in a lawsuit claiming the platform’s sweepstakes dodge state gambling laws. Seacrest’s posts for Chumba aren’t looking much safer.
The Pushback’s Heating Up
The Social and Promotional Games Association, which reps sweepstakes operators, is fighting mad. They’re calling the bill a shady, backroom move that skips the usual public debate.
Worse, they say its vague wording could accidentally outlaw legit sweepstakes run by brands like Starbucks or Marriott. “This is no way to make policy,” an SPGA rep said, practically begging Governor Newsom to hit the brakes.
A Nationwide Ripple Effect
Across the US, New York’s got a bill ready to ban the dual-currency models these casinos use, and its attorney general already sent 26 operators packing with cease-and-desist letters.
Last week, Montana and Connecticut had their own bans, and Louisiana’s gaming board went after 40 operators despite a vetoed bill. Gaming lawyer Daniel Wallach called it “Black Tuesday” for the industry, and he’s not wrong
If California and New York both drop the hammer, the sweepstakes casino market might be toast. Howard Glaser from Light & Wonder put it starkly: if California goes, and Texas or Florida follow, these platforms are done in the U.S. Operators might try fighting back in court, but with tribes and regulators teaming up, it’s looking like an uphill battle.
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