California targets sweepstakes casinos in major move against illegal online gaming
California is stepping into the spotlight with new legislation aimed at shutting down illegal online sweepstakes casinos, and it could mark the beginning of the end for these operations across the US.
Backed strongly by the California Nations Indian Gaming Association (CNIGA), the bill closely mirrors a similar measure that passed unanimously in New York last week. It takes a hard stance, making it illegal for anyone, including banks, payment processors, geolocation services, platform providers, media partners, or even celebrities, to help run or promote unregulated sweepstakes casinos.
California sweepstakes crackdown could spell end for other statesHoward Glaser, Light & Wonder’s government affairs global head, described the moment in a LinkedIn post as “The Giant Awakens,” pointing out California’s powerful role in shaping gaming policy. He warned:
“California’s action – and certainly if, as expected, either Texas or Florida follow suit- would spell the end of viable sweepstakes casino operations in the US.”
What really turns heads is that the bill could also hold celebrities like Drake, Paris Hilton, and Ryan Seacrest legally responsible for promoting these platforms. All three have previously been linked to sweeps casino endorsements. Given that gambling rights in California are reserved for tribal nations, the legislation is expected to get a warm reception in Sacramento.
The move wrapped up a big week for the fight against illegal sweeps casinos. New York passed its own bill. Louisiana and Mississippi issued more than 50 cease-and-desist orders. Connecticut signed new regulations into law. New Jersey advanced a similar enforcement proposal.
Legal experts say California’s involvement could be a game-changer. With several major states now lining up to crack down on these casinos, the business model is quickly becoming unworkable.
A new bill in California targets the illegal sweepstakes gambling industry. Jason Giles and I will break it down with CNIGA’s James Siva on Wednesday’s webinar. pic.twitter.com/Dp8VEYdk6j
— Victor Rocha (@VictorRocha1) June 23, 2025
The industry is definitely on Victor Rocha’s radar now. As the conference chair of the Indian Gaming Association and a well-known advocate for tribal sovereignty, he’s someone whose voice carries serious weight in these conversations. Posting on X, he said that it would be a subject of discussion on Wednesday’s Indian Gaming Association webinar.
NY SWEEPS BAN CRIMINALIZES VENTURE INVESTMENT IN THE EMPIRE STATE, DEMANDS HOCHUL VETO pic.twitter.com/A41kt9wIGu
— theSPGA (@theSPGA) June 18, 2025
‘Criminalizing innovation’In response to New York’s crackdown, the Social and Promotional Games Association (SPGA) said that Senate Bill 5935 sends a “chilling message” to future gaming investors.
“This bill doesn’t just target sweepstakes, it sends a chilling message to anyone looking to invest in the next generation of gaming innovation.” SPGA spokesperson
In a statement posted on their website, a spokesperson added: “Nearly every form of online gaming we know today, including companies like FanDuel, a New York-based success story, began as pre-regulated concepts. This legislation criminalizes that innovation cycle.”
The group called on New York Governor Kathy Hochul to veto the bill, saying it threatens the spirit of innovation that’s helped make New York a leader in tech, gaming, and entrepreneurship.
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