While sweepstakes platforms continue to operate legally in many other U.S. states under various regulatory frameworks, California is taking a different approach. Starting January 1, 2026, the Assembly Bill 831 (AB 831) will come into full effect, fundamentally changing how online sweepstakes function within the state. This move aims to close loopholes and ensure consumer protection by reducing the risks associated with these platforms.
For now, many California-based sweepstakes players still have access to promotions such as the stake us promo code through trusted platforms like Action Network. These promotions will remain available until the end of December 2025, providing a final window for players to engage with the current sweepstakes offerings before the new restrictions kick in.
What is AB 831?
AB 831, signed by Governor Gavin Newsom in October 2025, prohibits online sweepstakes games that simulate casino gambling by using two types of virtual currency—one purchased and one promotional—that players use to enter games revealing cash or cash-equivalent prizes. The legislation closes a loophole that allowed these online sweepstakes casinos to operate legally by arguing the promotional currency was “free,” thus sidestepping gambling laws.
Implications for California Residents
California residents who participated in or enjoyed sweepstakes games offered online with cash prizes will need to adjust to this new legal environment. As of January 1, 2026, any platform offering dual-currency sweepstakes that simulate gambling and award cash prizes will be illegal. Use of, or support for, such platforms could expose individuals and businesses to significant legal penalties.
Though direct prosecution of players might be rare, the law emphasizes deterrence, especially against high-volume users.
Legal Alternatives Available in California
For residents interested in social gaming, platforms that are strictly free-to-play and do not offer any cash or cash-equivalent prizes remain permissible. These social casino games operate on virtual currencies that hold no redeemable monetary value, thus staying compliant with AB 831.
Potential Shift to Offshore Gaming and Its Risks
Because AB 831 targets only platforms operating within California’s jurisdiction, some players might consider using offshore gambling sites. However, these offshore platforms are unregulated by California or U.S. authorities, which involves risks such as lack of consumer protections, uncertain payout fairness, and no legal recourse in disputes.
California aims to minimize this risk by enforcing ancillary liability on service providers like payment processors and advertisers, effectively squeezing illegal operators’ access to critical infrastructure and finances.
What California Residents Should Take Away
- Starting January 2026, online sweepstakes using dual-currency setups offering cash prizes will be illegal in California.
- Santa Monica residents should ensure their gaming activities comply with prevailing laws.
- Awareness and caution regarding online sweepstakes platforms are advisable to avoid exposure to increased legal risks.
- The gaming landscape in California is becoming more regulated to support tribal exclusivity while providing clear legal pathways for gaming entertainment.
