California Senate Passes Ban on Online Sweepstakes Casinos

Online sweepstakes casinos in the US remain under massive pressure and face intense scrutiny as the battle against this controversial iGaming vertical shows no signs of slowing down.

California took an important step toward a complete ban on sweepstakes casinos as the Senate unanimously passed Assembly Bill 831 by 36-0 on Monday, September 8.

The introduction of AB 831 represents one of the most serious legislative efforts, aligning with a growing pushback against sweepstakes casinos in the US.

Is AB 381 the End of Sweepstakes Casinos in California?

The bill was unanimously passed in the California Senate. However, it now must return to the California Assembly for a vote. Its “gut-and-amend” introduction means the lower house has not yet approved its full contents.

Before the bill is sent to Governor Gavin Newsom for signature, it must first overcome two additional obstacles. The first one is the Assembly Governmental Organisation Committee, and the second one is gaining support from a full floor vote. It means that the bill must have at least 41 votes from 80 Assembly members. Since the bill hasn’t faced any opposition from California legislators, it is likely to be passed without any issues.

The legislative sessions end on September 12, but the deadline for the Governor to either sign or veto the bill is October 12.

The bill doesn’t just deal with sweepstakes operators. It also includes legal penalties for affiliates, game suppliers, and even payment providers who work with these operators. Therefore, AB 831 has already been taken seriously by some leading iGaming brands, such as Pragmatic Play.

Will Playtech Follow Pragmatic Play in Withdrawing from Sweestakes Casinos?

At the end of August 2025, the city of Los Angeles and its city attorney filed a civil enforcement action against one of the best-known sweepstakes brands in the US, Stake.us. This lawsuit has also involved several major iGaming companies, including Evolution, Hacksaw Gaming, and Pragmatic Play, naming them as “accomplices” to the operation.

The lawsuit launched a series of measures in the state, and the first major content supplier to withdraw from the US sweepstakes market is Pragmatic Play. Moreover, Playtech is also announcing its intention to pull back from the California online sweepstakes market.

Louisiana Department of Revenue Targets VGW and WOW Vegas

A new case highlights the seriousness of the situation with sweepstakes casinos in the US.

The state of Louisiana and its Department of Revenue are preparing a lawsuit against Virtual Gaming Worlds (VGW) and MW Services, trading as WOW Vegas. The state accuses both companies of failing to pay $44 million in taxes earned from selling virtual currencies on their sweepstakes casino platforms.

The latest developments show that Louisiana is another state joining New Jersey, Delaware, and New York in taking serious actions against sweepstakes platforms. These platforms have been operating in a legal gray area, and the state is now determined to put an end to such practices.

It all started in April this year when Louisiana Senator Adam Bass introduced Bill SB 181. The bill also addressed the problem of a dual-currency system used by sweepstakes operators, which allows players to exchange the virtual casino currency for various rewards, including cash.

The SB 181 was also unanimously approved in the Louisiana Senate in April. However, the state’s Governor Jeff Landry vetoed the bill, stating that Louisiana already has regulations and laws in place that will ensure compliance.

Consequently, in July, VGW announced that the company would limit the usage of its sweepstakes coins. On the other hand, the famous WOW Vegas sweepstakes casino withdrew its operations from the state completely in mid-July.