After a week of major legal actions across the U.S., California introduced a new bill to ban sweepstakes casinos, delivering yet another setback for the growing industry. The legislation, backed by the California Nations Indian Gaming Association, seeks to block these casinos in a state where gambling is legally reserved for tribal nations.
The bill would make it illegal to facilitate, process, or promote sweepstakes-style gambling, and targets not just operators, but also financial institutions, media affiliates, payment processors, and even celebrities who promote such platforms—Drake, Paris Hilton, and Ryan Seacrest among them.
The move mirrors recent legislation in New York, which also passed a prohibition on sweep casinos. Other states taking similar steps include Connecticut, Montana, and Nevada. In the South, regulators in Louisiana and Mississippi have issued over 50 cease-and-desist letters to operators, both offshore and domestic.
Industry advocates, such as the Social and Promotional Games Association (SPGA), are pushing back, claiming the new laws may expose investors and tech vendors to unfair criminal liability, especially for platforms offering free-to-play games with non-cash rewards.
Despite the backlash, it’s clear that the U.S. is entering a new era of scrutiny for sweepstakes-style gambling, and California’s legislation could be a turning point.
