Sweepstakes Games Are Officially Over for California

What Exactly AB 831 Prohibits

According to the text of the document, its purpose is to make interactions with sweepstakes activities unlawful on California territory:

The bill would make it unlawful for any entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly and willfully support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within this state.

The law specifies sweepstakes as a procedure, activity, or event, for the distribution, donation, or sale of anything of value by lot, chance, predetermined selection, or random selection that is not unlawful under other provisions of law.

It also gives a list of characteristics that a game must meet in order to be considered a sweepstakes one:

1. Available on the internet or accessible on a mobile phone, computer terminal, or similar device.
2. Utilizes a dual-currency system of payment that allows a person to play or participate with direct consideration or indirect consideration, and for which the person playing or participating may become eligible for a prize, award, cash, or cash equivalents or a chance to win a prize, award, cash, or cash equivalents.
3. Simulates gambling, such as slot machines, video poker, table games including poker, lotteries, bingo, sports betting.
4. Awards cash or cash equivalents.

However, the law doesn’t prohibit game promotions or sweepstakes conducted by for-profit commercial entities on a limited or occasional basis as an advertising or marketing tool that are incidental to substantial bona fide sales of consumer products or services and that are not intended to provide a vehicle for the establishment of ongoing gambling or gaming.

How Law Will Punish People for Interactions with Sweepstakes

If a person violates AB 831, they will be punished depending on their particular circumstances by:

• Fine between $1,000 and $25,000
• Imprisonment in the county jail for a period of up to 1 year
• Both fine and imprisonment simultaneously

Which U.S. States Have Banned Sweepstakes in 2025

• Montana
• Connecticut
• New Jersey

As of October 13th, 2025 New York and Nevada both are waiting to see if their respective governors sign similar bills or not.