Gray Area No More: How California Closed the Sweepstakes Casino Loophole

Apr 01, 2026
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Digital Play Summit

California's unanimous passage of AB 831 marks a decisive end to "sweepstakes casinos" operating in a regulatory gray area. These platforms used dual-currency models, offering purchasable play tokens alongside redeemable "sweeps coins," to circumvent traditional gambling laws. Backed by California gaming tribes protecting their exclusive compacts, the legislation imposes criminal penalties on operators and vendors alike, effective January 2026. This session examines the legal framework, enforcement mechanisms, and broader implications for online gaming regulation nationwide.