Governor Newsom Signs Anti-Sweepstakes Bill into Law

California Governor Gavin Newsom has signed Assembly Bill 831 into law, officially banning sweepstakes and contest-style gambling throughout the state. The new law, which takes effect on January 1, 2026, closes the door on so-called “dual currency” gaming operations that have long existed in a gray legal area.

Good to Know

• AB 831 bans sweepstakes and contest-style gambling starting January 1, 2026.
• Violators can face up to a $25,000 fine or one year in county jail.
• The law also targets facilitators like payment processors, content suppliers, and affiliates.

The California Senate reshaped AB 831 into an anti-sweepstakes bill back in June, before passing it 36-0 on September 8. The State Assembly followed with a unanimous 63-0 vote on September 12. Governor Newsom’s signature over the weekend completed the legislative process, marking a sweeping victory for tribal gaming interests that had supported the measure from the start.

The law prohibits not only operators but also any company or entity that assists in sweepstakes gambling — from financial institutions and payment providers to platform hosts and media partners. Violators may face criminal penalties, including up to a year in county jail, a fine reaching $25,000, or both.

While tribal gaming entities backed the measure, the Social Gaming Leadership Alliance (SGLA) stood firmly against it. The group, representing sweepstakes operators, had urged Governor Newsom to veto the bill. The SGLA warned that AB 831 could eliminate more than $1 billion in annual economic activity and strip away hundreds of millions in tax revenue.

Jeff Duncan, executive director of the SGLA, expressed frustration after one legislative hearing. “Today’s hearing exposed the committee’s complete disregard for facts, economic reality, and the voices of tens of thousands of Californians all to hand monopoly power to tribes that have already invested hundreds of millions of dollars in Las Vegas and California coastal properties,” he said.

National Trend Against Sweepstakes Gambling

California’s move adds momentum to a national crackdown on sweepstakes gambling. Earlier this year, Montana became the first state to enact a ban, followed by Connecticut and New Jersey. In New York, an anti-sweepstakes bill now sits on Governor Kathy Hochul’s desk awaiting approval. Nevada’s own version, S.B. 256, is also awaiting final authorization.

The post Governor Newsom Signs Anti-Sweepstakes Bill into Law appeared first on iGaming.org.