Governor Gavin Newsom’s decision to rubber-stamp a sweepstakes ban in the Golden State may have far-reaching implications across the US.
Significantly, Bill AB831 criminalises both sweepstakes operators and those who supply the vertical, and was unanimously passed through the Senate and State Assembly in September. California now joins the likes of Montana, Connecticut, and New Jersey in enacting laws banning the vertical.
Is this the end of sweeps?
California’s decision to outlaw sweeps represents a key blow for the embattled vertical, given California is the most populous state in the US.
Howard Glaser, Global Head of Government Affairs and Legislative Counsel at Light & Wonder, emphasised his belief that the sweeps debate is now “firmly settled” as investors, payment processors and licensed suppliers flee the market.
“Since the American Gaming Association issued their policy statement on sweeps casinos last year, a substantial portion of the US population is now beyond the reach of legal sweeps operations, cutting across regional and political lines,” said Glaser on LinkedIn.
However, as Glaser reflected on online sweepstakes heading to “the dustbin of gambling history”, he warned that a solution must be found to the US’s fragmented regulated iGaming market to prevent the illegal market filling the void.
Online gaming is currently only legal in seven states, as the country’s significant land-based market continues to rally against the perceived threat of digital expansion.
Meanwhile, at the beginning of 2025, Eilers and Krejcik Gaming valued the US sweepstakes market at $5.6bn, demonstrating the appetite for a digital alternative in the US.
Glaser added: “Consumer demand for online gambling isn’t going away – it’s just getting started. The industry will need to find the same level of cohesion achieved during the sweeps effort to shape a path to online growth. The alternative is to be locked in endless combat against ever-mutating forms of unregulated online gambling.
“Further expansion of state authorisation of iGaming remains stymied by polar opposite industry views. Breaking the cycle of regulatory whack-a-mole through the creation of a uniform, broad and legal online gambling program is a subject on which the casino industry is sorely divided.
“While both sides are following rational economic self-interest, the stalemate guarantees further growth of a parallel Wild West online gaming market, which damages all facets of the regulated gaming industry.”
Tribal leader lambasts lobbying groups
AB831 enjoyed widespread support from California’s gaming tribes, including the Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA).
However, industry groups such as the Social Gaming Leadership Alliance (SLGA) and Social and Promotional Games Association (SPGA) opposed the legislation, advocating for the economic benefits of sweepstakes for the state.
Upon announcement of Newsom’s approval, Victor Rocha, the Conference Chair of the Indian Gaming Association, took to social media to question the future of the Executive Director of the SGLA, Jeff Duncan.
Rocha also described the efforts of the SPGA as “one of the most pathetic lobbying campaigns in the history of California”.
“This industry wasn’t built to last. It was all about the arbitrage. They knew this flimsy house of cards would eventually collapse. Now the game is about disgorgement. Think of all those beautiful dollars coming back to the people of California,” celebrated Rocha, as he also stated California tribes’ readiness to oppose prediction markets, the latest contentious form of gambling to emerge in the US.
