California Governor Newsom Enacts Statewide Ban on Sweepstakes Casinos with AB 831
California Governor Gavin Newsom has signed Assembly Bill 831 into law, effectively banning online sweepstakes casinos that utilize dual-currency systems allowing players to redeem prizes with real-world value. This legislation positions California as the latest state to take action against the sweepstakes casino industry. AB 831 prohibits the operation, promotion, and facilitation of online sweepstakes games that mimic traditional casino gambling or sports betting through a dual-currency model. These platforms typically offer one form of virtual currency for entertainment and another redeemable for cash prizes or gift cards. The law also extends legal consequences to businesses that knowingly support or facilitate sweepstakes casino activities. This move follows a growing trend across the U.S. where regulators and lawmakers are introducing legislation and enforcement actions to limit sweepstakes casino operations, which have often been criticized for exploiting regulatory gaps by presenting casino-style g...