Online casinos are not permitted in California, and recently, sweepstakes casinos have fallen into that same category due to changes in the law.
Understanding sweepstakes law is key to knowing why you can no longer play at these sites. In this write-up, we aim to give you a clear look into these new laws and explain exactly what they mean for the future of sweepstakes casinos.
It’s important to differentiate between Federal laws and state laws here. Federal law applies to the whole of the US, whereas state laws are imposed in individual states. That’s why some states allow online casinos and others do not. As I’ve already noted, there are different types of casinos though, so let’s look at the offerings in the state at present.
State regulations currently prohibit the operation of online casinos. There is a chance this could change, but for now, it is illegal for California residents to use such sites.
❌Wagering real money
❌Claiming cash prizes
❌Cash gameplay with real money
As of the 1st of January 2026 Sweepstakes Casinos are not permitted to operate in the state of California due to new laws that are banning the use of platforms that utilise the dual-currency system.
❌Dual-currency purchases
❌Redeeming real prizes for Sweeps coins
❌Promotional gameplay for Sweeps coins
Free Social casinos will still be permitted to operate in California, as they offer only free-to-play games and do not award real prizes. There is no sweeps currency and no way to redeem winnings. They are purely just for entertainment purposes only.
âś…No sweepstakes currency
âś…No prize or cash redemptions
✅Entertainment‑only gameplay
As of January 1, 2026, the Californian Law has passed a bill, AB 831, banning contests and sweepstakes gambling, including dual-currency sweepstakes poker and casino products. Essentially, any platform operating under a dual-currency sweepstakes system will no longer be able to operate in the state of California. If you are looking for information regarding New York, you’ll need to read the sweepstakes casinos in New York - our full guide to sweepstakes laws in NY instead.
Even though they are no longer legal in California, here is a breakdown of how sweepstakes casinos operate in the states that still allow them. Sweepstakes sites offer casino-style games that do not involve real-money betting. Instead, they allow users to play titles as social games or in 'sweepstakes mode' using two types of in-house currency.
You can choose to play social games for fun with Gold Coins or enter sweepstakes contests with Sweeps Coins. While some sites may use different names for these currencies, their functions are always clearly defined upfront.
Regardless of their names, these coin types function identically at all sweepstakes sites. However, you will no longer be able to play them in California, as they have been officially declared illegal. Here are some facts that will apply in every case. You’ll note the same rules if you read about sweepstakes casinos in Texas - our full guide to sweepstakes laws in TX.
| Gold Coins | Sweeps Coins |
| Use these to play social casino-style games | Use these to play casino-style games in sweepstakes mode |
| Optional purchases are available, but not required | Sweeps Coins are never available for purchase |
| Collect more via a welcome bonus, daily login bonus, and by entering competitions on social media | Collect more via a welcome bonus, potentially a daily login bonus, and via competitions and giveaways on social media |
| Gold Coins are not redeemable for real prizes | You cannot directly redeem Sweeps Coins, but you can redeem Sweeps Coins winnings for real prizes as per the site’s sweepstakes rules |
Free Social Casinos are very similar to sweepstakes casinos, except they exclusively offer fun-play. Gameplay at these free social casinos uses 'play-for-fun' Gold Coins only, with no Sweeps Coins or prize redemptions available. This classifies them as standard entertainment, allowing them to operate even in states where sweepstakes are strictly regulated.
As mentioned in this brief write-up, sweepstakes casinos are no longer available in the state of California. This will be effective as of the 1st of January 2026. This means you will no longer be able to claim any bonuses or promotions for these platforms in the state of California.
Will this change in the future? There is no way to know, and we have seen that platforms that operated as sweepstakes casinos have already started to withdraw from California. If you are looking for information in the future, come back to visit for all the up-to-date legalities.
No, As of the 1st of January 2026 you will no longer be able to redeem cash winnings or real prizes in the state of California under the new laws.
Gold coins are for just for fun play and hold no monetary value. They are usually gained through bonuses and promotions.
No, California has passed bill AB 831 into law, banning contest and sweepstakes gambling, including dual-currency sweepstakes poker and casino products and it starts on January 1, 2026.
Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.
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