California Bill to Ban Sweepstakes Poker Sites

Sweepstakes poker sites are merely a signature from the governor away from being banned in California, following a unanimous Senate vote.

Gov. Gavin Newsom (D) still has the option to veto Assembly Bill 831. But if he opts to instead sign the bipartisan bill, operating a sweepstakes-based online casino in the largest state in the country will become illegal.

That's bad news for sites such as ClubWPT Gold and Global Poker. Those sites have used a loophole — requiring customers to purchase Sweeps Coins (SC) instead of casino chips to play poker — in jurisdictions that don't permit traditional online gambling.

California Sweepstakes Poker Site Bill Details

AB 831, sponsored by Assemblymember Avelino Valencia (D), received little opposition from California lawmakers. The bill passed through eight votes from April 2, 2025 to Aug. 29, 2025, with no resistance.

The Assembly Standing Committee on Governmental Organization, on Sept. 11, passed the bill via a 20-2 vote. Valencia's anti-sweepstakes gambling measure then saw a 79-0 favorable vote on the Assembly floor last Friday. Gov. Newsom has until Oct. 12 to sign or veto the bill.

AB 831 was drafted as a means for closing a loophole in the existing law. Existing law makes it unlawful in California to engage in specified activities related to gambling, including, among others, proposing or drawing a lottery, dealing or playing certain games played with cards, dice, or any device for money, and manufacturing, repairing, or owning slot machines.

Current Gambling Status in California

Last update: Jun 24, 2025

  • Live Poker is allowed
  • Online Poker is forbidden
  • Online Casino is forbidden
  • Sports Betting is forbidden

This bill would make it unlawful for any person or entity to operate, conduct, or offer an online sweepstakes game. Those who violate the policy face misdemeanor charges with penalties up to a year in jail and $25,000 in fines.

Industry Reaction and Tribal Concerns

The Social Leadership and Gaming Alliance expressed disappointment in the California lawmakers for passing AB 831.

“It is incredibly disappointing that the California Assembly decided to pass AB 831,” Jeff Duncan, Executive Director of SGLA wrote. “Beyond the fact that this bill would worsen economic disparities among California tribes, put California to the back of the line in terms of digital innovation in this space, and take away a popular form of entertainment for residents, it will immediately strip $1 billion out of the state’s economy.

"It is incredibly disappointing that the California Assembly decided to pass AB 831"

“We implore Governor Newsom to veto this bill and instead open the door for online social games to support economically disadvantaged tribal nations and the state’s economy while positioning California as a leader in next-generation gaming technology.”

Broader Crackdown on Sweepstakes Casinos

California is the latest major state to ban the sweepstakes casino model. New York Attorney General Letitia James and the New York State Gaming Commission sent cease-and-desist letters to 26 online sweepstakes casinos in June.

ClubWPT Gold and WSOP Promotion Controversy

ClubWPT Gold

Sweeps coin poker sites have received increased attention this summer due to a ClubWPT Gold promotion that offered qualifying World Series of Poker (WSOP) bracelet winners a $1 million bonus. The promotion stirred up controversy after Jesse Yaginuma, a contest winner, won the Millionaire Maker event after his heads-up opponent, James Carroll, allegedly dumped chips to him so they could chop the bonus money.

ClubWPT Gold ceased operations in Louisiana and Connecticut last week and backed out of New Jersey a few months earlier. Lawmakers in some other states, including Nevada, have proposed measures that would effectively ban the sweeps coin model.

What Happens Next for California Players

Players on sweepstakes sites in California will still be able to play for a short while after the bill is officially passed. But that will likely change in January.