California Becomes Latest State to Consider Sweepstakes Casino Ban
California has become the latest state to take legislative steps aimed at prohibiting sweepstakes casino operations, with lawmakers introducing a bill that targets the rapidly growing industry. The move signals a broader effort to curb unregulated gambling practices that are increasingly being scrutinized across the US.
LISTEN TO THIS ARTICLE:The proposed legislation, backed by the California Nations Indian Gaming Association, seeks to reinforce the state's constitutional framework, which limits gambling activities to recognized tribal operations. The bill goes beyond simply banning sweepstakes-style gambling platforms. It's designed to dismantle the infrastructure supporting these operations by targeting not only the operators themselves but also their enablers.
The proposed law would make it illegal for financial institutions, geolocation service providers, gaming suppliers, payment processors, platform providers, and media affiliates to facilitate or promote these platforms. The measure also considers applying legal scrutiny to celebrities and influencers who endorse such services. Notable personalities such as Drake, Paris Hilton and Ryan Seacrest have previously lent their names to sweepstakes operators.
Although the full legislative text has not yet been made publicly available, officials familiar with its structure have indicated that it is modeled after similar measures passed in other states, including New York. In New York, lawmakers in both chambers of the legislature recently voted unanimously to approve a ban on sweepstakes casinos.
The timing of California's proposed legislation reflects a coordinated effort by multiple states to take action against sweepstakes operators. The past week alone saw more than 50 cease-and-desist letters issued by gambling regulators in Mississippi and Louisiana.
In Louisiana, the Gaming Control Board acted after Governor Jeff Landry vetoed a bill targeting sweepstakes operators, asserting that existing regulatory powers were sufficient. Nonetheless, the board proceeded with enforcement efforts, targeting both offshore and sweepstakes-based platforms with legal warnings.
Similarly, the Mississippi Gaming Commission issued letters to multiple companies it deemed to be operating illegally within its jurisdiction.
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California Tribes Want to Rein in Gambling
In California, the tribal gaming community has long expressed concern over the unchecked growth of sweepstakes casinos. Victor Rocha, chairman of the Indian Gaming Association, has consistently advocated for stricter controls on these entities, citing the threat they pose to the regulated tribal gaming framework.
Last year, tribal representatives aligned with the Sports Betting Alliance to call for legislative action, despite historical tensions between the two groups over other gambling issues. The united front added pressure on lawmakers to address the perceived encroachment by unlicensed digital gambling platforms.
While the central focus of the California bill is on curbing the spread of sweepstakes casinos, it also highlights broader questions about the digital gambling landscape. The Social and Promotional Games Association, a trade group representing many sweepstakes operators, has voiced opposition to recent legislation across multiple states.
The association argues that these laws risk criminalizing entrepreneurs, software vendors, and even venture capital firms involved in developing or funding free-to-play platforms. The group also pointed out that some tribal entities, such as the San Manuel Band of Mission Indians, operate online platforms offering free casino-style games, though these typically award non-cash prizes.
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