California is known for its ambitious laws, and starting January 1, 2026, Assembly Bill 831 (AB 831) will change the online gaming landscape.
Governor Gavin Newsom signed AB 831, which prohibits sweepstakes-based social casinos from operating in California beginning next month.
The new law is focused on shutting down what are known as dual-currency sweepstakes casinos. These online platforms let players use two types of currency: one for playing games and another that can be exchanged for real money prizes.
The new law targets online games using a dual-currency system to simulate gambling.
Under this system, players buy play money (like gold coins) and often get additional "sweeps coins" which can be used to win cash or prizes in games that resemble slot machines, poker, table games, and more. Starting in 2026, offering or promoting these kinds of games will be illegal in California.
The sweepstakes casino ban is a move that is supported by the Indian Gaming Association (IGA) and the California Nations Indian Gaming Association (CNIGA).
What Will AB 831 Change in California?
If someone is found to be running or promoting these games, they could face serious consequences. This isn't just about paying fines, which can go up to $25,000 per violation. Violators could also face up to a year in jail.
The law doesn’t just target the companies directly running these games.
It’s also aimed at any businesses that help support these platforms. This includes payment processors, tech companies, and marketing affiliates. If these organizations know they are aiding these dual-currency platforms, they could also face penalties under AB 831.
Why Celebrities and Influencers Should Pay Attention
AB 831 doesn’t just focus on the businesses behind these sweepstakes casinos.
The law is written in a way that also makes it a crime for anyone to promote these games if they involve using play money to win real cash prizes. This means the law doesn’t just apply to the operators—it also reaches people and companies that help advertise these games.
The language in the bill includes "media affiliates" and "promoters," which covers a wide range of people, including celebrities and influencers. This means if a celebrity or influencer promotes these online sweepstakes casinos, they could face legal problems.
Past analyses of the law point out that well-known figures like Drake, Paris Hilton, and Ryan Seacrest could be at risk if they advertise these games to people in California. These celebrities often appear in ads or social media posts promoting sweepstakes casinos, and if they continue doing so, they could get in trouble once the law is in place.
How Does California Compare To Other States?
Other states like Montana, Connecticut, New Jersey, and Nevada have already moved to shut down these kinds of sites in 2025.
However, California’s law is particularly noteworthy for its wide reach and clear start date in 2026. Already, states such as Indiana, Maine, and Florida are considering similar measures.
New York has taken action by sending warning letters to many platforms, which have to stop offering their services by 2025.
California's approach is significant for a few reasons. First, it’s home to many gaming enthusiasts, so this law could affect a large number of people. Additionally, it sets a precedent that other states might follow. This could lead to more states adopting similar laws, pushing online gaming platforms to make big changes to how they operate.
What About Other Types of Games?
It's important to note that not all online games are affected. Games that are purely for entertainment and don’t allow players to win money are not targeted by this law. However, they still need to ensure they don't blur the lines with gambling or they might find themselves unintentionally caught up in these laws.
In short, California's AB 831 marks an important change in how the state regulates online gambling and gaming.
With heavy penalties and broad implications for anyone involved in the industry, this law is expected to have a big impact when it comes into effect in 2026. As gaming culture continues to evolve, both players and companies will be keeping a close eye on how this unfolds.
