Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioAbout 10 days after Gov. Gavin Newsom signed California’s sweepstakes-casino ban into law, most platforms remain active in the state — a slower reaction than the mass exits seen in other states such as New York, Montana, and Connecticut.
At the same time, Hawaii has started appearing on exclusion lists for several brands, further shrinking the national footprint of sweepstakes casinos.
California’s Crackdown
On October 11, Gov. Newsom signed Assembly Bill 831 (AB 831) into law, effectively banning sweepstakes casinos in the state. The bill, which didn’t receive a single opposition vote in the Legislature, will take effect on January 1, 2026. That gives operators a few months before they must exit the state.
The bill would make it unlawful for any person or entity to willingly and knowingly operate, conduct, offer, or promote dual-currency platforms. It extends liability to payment processors, marketing affiliates, and other service providers. Penalties include up to a year in county jail or a fine of $25,000 for knowingly supporting such operations.
The measure advanced through the Legislature with strong backing from tribal groups like the California Nations Indian Gaming Association and the YuHaaviatam of the San Manuel Nation. They argue the bill protects tribal gaming exclusivity and consumer safety.
Industry groups, including the Social & Promotional Games Association, have argued that AB 831 is overly broad and risks criminalizing legitimate digital promotions.
Only a Few Platforms Have Exited
California became the sixth state to ban sweepstakes casinos in 2025. It followed Montana, Connecticut, New York, Nevada, and New Jersey.
However, unlike elsewhere, sweepstakes casinos are slow to react to California’s ban. That’s likely due to the state representing a significant chunk of their US revenue. According to a recent Eilers & Krejcik report, California accounts for 17.3% of the US sweepstakes casino market.
That means many platforms could continue to operate in the state until the ban takes effect in January 2026. Still, some have decided to withdraw early. Carnival Citi led the charge, exiting California in September. CasinoBeats has confirmed the following platforms no longer accept California players:
- Carnival Citi
- Dara Casino
- Grand Vault Casino
- High 5 Casino (October 20 is the last day to redeem Sweeps Coins)
- Lucky Slots
- PeakPlay
- Ruby Sweeps
- Vegas Gems
Hawaii: The Next Territory to Watch
California’s ban is arguably the most high-profile hit on sweepstakes casinos’ market. In addition to the states passing legislation to prohibit the platforms, several others have targeted them through enforcement actions.
Hawaii, one of only two US states that prohibit all forms of gambling (the other being Utah), could become the next territory of interest. A sports-betting bill that passed both chambers earlier this year ultimately failed after lawmakers couldn’t reconcile Senate amendments before the April 25 deadline.
In the absence of legal gambling, many Hawaiians have turned to sweepstakes casinos operating in a legal gray area. While state officials haven’t yet moved against these platforms, several have pre-emptively updated their terms to exclude Hawaii.
Sweepstakes casinos that CasinoBeats has confirmed to stop accepting players from the state include:
- Baba Casino
- Carnival Citi (certain restrictions)
- Fliff
- Grand Vault Casino
- Lucky Stake
- Rich Sweeps
- Rolling Riches
- Speed Sweeps
- Sweeps Royal
- Thrillz
Together, California’s ban and Hawaii’s quiet exclusions show that sweepstakes casinos’ once-vast US map is shrinking — slowly, but decisively.
