What's Happening?
As of January 1, 2026, California has implemented a ban on dual-currency sweepstakes casinos, following the passage of Assembly Bill 831. This legislation, signed by Governor Gavin Newsom, prohibits online games that use a dual currency model to simulate
casino-style gambling if they offer cash prizes. The law aims to eliminate 'indirect consideration' in such games, effectively ending the operation of sites like Stake.us, McLuck, and Real Prize in the state. However, single-currency social casinos remain legal, with Hard Rock Jackpot Planet emerging as a recommended alternative for Californians.
Why It's Important?
The ban on dual-currency sweepstakes casinos marks a significant regulatory shift in California's online gaming landscape. This move prioritizes tribal casinos, which are a major economic contributor, generating over $9 billion annually for the state's economy. By restricting dual-currency models, the state aims to curb unauthorized gambling practices while still allowing social casinos that operate within legal boundaries. This change could impact players who previously engaged with sweepstakes casinos, redirecting them towards legal alternatives like Hard Rock Jackpot Planet.
What's Next?
With the new law in effect, Californians interested in casino-style gaming will likely transition to single-currency social casinos. The focus will be on ensuring compliance with the new regulations while exploring the benefits of social casinos, such as loyalty perks and exclusive games. Stakeholders, including gaming companies and tribal casinos, may adjust their strategies to align with the new legal framework, potentially leading to innovations in the social casino space.
