Are Sweepstakes Casinos Legal in California?

by Bob Duff

Updated: May 21, 2026

No, sweepstakes casinos are no longer legal in California. Governor Gavin Newsom signed California Assembly Bill 831 (AB 831) into law on October 11, 2025, and the ban took effect on January 1, 2026.

The law targets sweepstakes-style casino platforms that use dual-currency systems and promotional coins that can later be redeemed for prizes or cash equivalents. The California Senate Public Safety Committee analysis of AB 831 describes how the bill addressed online sweepstakes games using dual-currency models. As a result, major sweepstakes casino brands stopped offering sweepstakes play to California residents before the law officially took effect on January 1, 2026.

This guide explains what changed under California law, how sweepstakes casinos worked, whether brands like Chumba, McLuck, Rainbet, and Lucky Rebel are still accessible in California, and what gambling alternatives California residents now look at instead.

For broader information about legal gambling options in the state, visit our California legal betting guide.

Anyone holding winning sweepstakes casino coins in California needed to cash them in by December 31, 2025.

What changed in California?

California sweepstakes casino ban summary

• AB 831 was signed into law on October 11, 2025
• The law officially took effect on January 1, 2026
• Sweepstakes casino operations are now prohibited in California
• Operators, affiliates, payment processors, and vendors may face penalties
• California players themselves are not criminally penalized

It was California Assembly member Avelino Valencia who introduced the bill. He can be cited as the person who initiated the death of sweepstakes casinos in California. Valencia successfully argued that sweepstakes casinos constituted an illegal form of gambling, since sweepstakes casino sites were not licensed or regulated in the state. Most forms of online casino gambling and online sports betting remain illegal and unregulated in California, although horse racing wagering is permitted online through licensed advance deposit wagering platforms.

Passage of the bill was supported by both the Indian Gaming Association (IGA) and the California Nations Indian Gaming Association (CNIGA), powerful lobby groups in the state’s gaming industry. The state’s tribes control all land-based casino gambling in California, and they have also played a central role in debates over California betting apps and other forms of online wagering.

Tribal government gaming employs more than 100,000 people. Under the state constitution, California’s tribes have exclusive rights to operate gaming in the state. They’ve fought long and hard to maintain their monopoly. The state’s tribes operate 86 casinos that generate $5.76 billion annually in tax and tribal revenues, which is one reason they have also pushed back against expansion into areas like prediction markets.

Also backing this measure was the Sports Betting Alliance. This lobby group is an amalgamation of legal and regulated US sportsbooks. Members include FanDuel, DraftKings, BetMGM, Fanatics Sportsbook, and Bet365.

The state is prepared to come down on violators with the full force of the California legal and penal systems. It is unlawful for any person or entity to operate, conduct, promote, or offer an online sweepstakes game in California.

Beyond the sweepstakes casino ban, the new law makes it possible for any financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate found to be working with a sweepstakes casino operator to also be held legally accountable. This would even include celebrities such as Drake, Ryan Seacrest, and Paris Hilton. All serve as brand ambassadors for various sweepstakes casino sites.

Any person or company found to violate these provisions would be guilty of a misdemeanor punishable by a fine not less than $1,000 nor more than $25,000, or by imprisonment in the county jail not exceeding one year, or by both the fine and imprisonment.

It’s worth noting that these penalties would only be imposed on sweepstakes casino operators and industry partners. Players of these games would not be subject to any legal punishment.

What is a sweepstakes casino?

How Sweepstakes Casinos WorkedSweepstakes casinos typically used two virtual currencies:

• Gold Coins: Free-play virtual currency with no cash value
• Sweepstakes Coins: Promotional coins redeemable for prizes or cash equivalents

This dual-currency system is what California lawmakers targeted under AB 831.

Social and sweepstakes casinos operate through a dual-currency system. Players use virtual Gold Coins for entertainment-style casino gameplay. These Gold Coins do not carry real-world cash value, although players can sometimes purchase additional Gold Coins to continue playing social casino games.

During gameplay, all of your winnings are also virtual. The Gold Coins hold no monetary value. You are playing entirely for enjoyment and entertainment purposes.

Players can also opt to upgrade and play with sweepstakes coins. In sweepstakes casino play, the sweepstakes coins are always free of charge. You may never purchase these coins. Acquisition of sweepstakes coins can only be achieved by winning them during gameplay, as gift packages from the sweepstakes casino, or by completing tasks that the sweepstakes casino is assigning to players. The tasks can be as simple as logging in to your sweepstakes casino account.

Exchanging these sweepstakes coins for prizes consisting of gift cards or merchandise does happen. The prize packages could even include sums of cash.

By not charging for the sweepstakes coins and by making prizes only earnable by exchange, operators of sweepstakes casinos unsuccessfully argued to California lawmakers that their model is similar to sweepstakes competitions run by major U.S. corporate entities like McDonald’s.

This, they suggested, is what differentiates a sweepstakes casino from an online casino at which you are gambling with and winning or losing real money. The California government didn’t buy that argument, opting to ban all sweepstakes casino play in the state.

Are Rainbet, Chumba, McLuck, and Lucky Rebel legal in California?

Sweepstakes casinos had been legal in California since 2012. All of the major players in the industry, such as Chumba Casino, Luckyland Slots, and McLuck Casino, were operating in California.

However, as AB 831 was drawing closer to becoming a law, each of the major sweepstakes casino sites began to plan its exit from the California market. Today, only the social casino version of these sites is accessible to California players.

Offshore sportsbook and casino sites like Rainbet and Lucky Rebel may be accessible to California players. However, they are not licensed or regulated by California authorities. The California Gambling Control Commission says it does not issue online casino licenses, which is why offshore casino access should not be treated as California-regulated gambling.

If you want to compare broader online casino options and California gambling laws, visit our California online casinos guide.

Sweepstakes casinos vs online casinos vs sportsbooks

Losing the California market was significant for the sweepstakes casino industry. According to SCCG Management estimates, California accounted for 17% of the U.S. online sweepstakes casino market, with more than 20,000 Californians actively participating in sweepstakes casino play.

In social casino play, there’s no winning of real money. All of the winning is in virtual coins that hold no value. With a sweepstakes casino, the acquisition of sweepstakes coins is always free of charge. It is possible to win money playing at a sweepstakes casino. However, that is the choice of the player.

When a player wins at a sweepstakes casino, they can exchange their sweepstakes coins for prizes. The options generally include gift cards, merchandise, or sums of cash.

By contrast, when you play games like blackjack or roulette inside a standard online casino, you will be directly winning real money. However, the only way to win that real money is by risking your own actual cash funds. A site requirement will be funding your account with your own money.

It’s a similar scenario with an online sportsbook. To place a wager on the NFL, NBA, or MLB, you will be making those bets with your own cash. Of course, should you succeed with your betting, you will also be winning real cash.

What Californians look at instead

While there may be a prohibition on their sweepstakes brothers in California, social casinos are still able to flourish in the state.

At a social casino, you’re playing games with virtual coins, often referred to as Gold Coins. A player can purchase virtual coins. However, social casino sites regularly provide free supplies of Gold Coins to players to use on their site. It’s important to remember that these coins hold no monetary value. And they are paying out winnings from gameplay in virtual coins.

Among the popular social casino sites available to California players are Gambino Slots, BetRivers.net, and Horseplay.

Horseplay is a unique site that combines real horse racing with social casino-style games. The industry is classifying it as a parimutuel-powered game (PPG). In this format, players compete against each other, instead of the house. The determination of results is coming from the outcomes of actual horse races. Since it’s legal to bet on horse racing in California, you can bet and win real money playing Horseplay.

It is possible to play land-based casino games at one of the state’s 86 tribal casinos. California is home to 88 licensed cardrooms. You can play poker and other card games for real money.

Pari-mutuel wagering on horse racing is legal and available in California. The prominent racetracks in California include Santa Anita, Del Mar, Los Alamitos, and Cal-Expo.

On-track wagering is accessible, and horse racing is the main legal gambling category in California with a regulated online wagering option. The California Horse Racing Board lists approved advance deposit wagering providers, including platforms that allow online horse racing bets in the state. There are also more than a dozen fair tracks across California that offer off-track satellite wagering.