New Bill Could End Sweepstakes Gaming in California

California lawmakers have moved forward with a bill that could block sweepstakes casino operations from continuing in the state. While the full bill text has not yet been released, early reactions from industry groups and tribal gaming leaders suggest a larger fight is ahead.

Good to know

• The Social and Promotional Games Association (SPGA) claims the ban was pushed through at the last minute without public input.
• Six U.S. states, including New York, have already banned sweepstakes casinos.
• Key tribal leaders plan to discuss the bill further on June 25.

The legislative effort appears to have caught many off guard. SPGA criticized the attempt as a “backroom ban” and accused lawmakers of using a “gut and amend” tactic to rush the measure through before a legislative deadline. This method allows existing bills to be emptied and repurposed with unrelated language, often bypassing normal review processes.

A spokesperson for the SPGA did not hold back in their response, stating, “This isn’t how sound policy gets made. A last-minute effort to outlaw legal digital games, without public debate, expert input or economic analysis, sends a chilling message to entrepreneurs, innovators and investors across the state.”

The proposed change would bring California in line with states like Connecticut, Louisiana, Montana, Nevada and New York, which have already banned these types of gaming platforms. In fact, New York’s ban was just approved on June 18.

Victor Rocha, IGA Conference Chairman, said he plans to discuss the situation further on June 25 with James Siva of the California Nations Indian Gaming Association (CNIGA). Meanwhile, Howard Glaser, Light & Wonder’s Global Head of Government Affairs and Legislative Counsel, added that a range of industries — from financial institutions to geolocation tech providers — will likely be affected if the bill passes.

The SPGA voiced deeper concern about legislative priorities in the state. In their statement, they added, “California voters didn’t sign on for backroom deals dictated by powerful political interests. With the state facing wildfires, a housing crisis and a full federal assault on Californians’ rights, it’s astounding that any lawmaker would make banning mobile games a priority.”

As the debate continues, all eyes will be on the June 25 discussion for further clarity on how the bill could reshape the gaming landscape in California.

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