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California closes the door on sweepstakes casinos
California has enacted a statewide ban on sweepstakes casinos, following Governor Gavin Newsom’s signing of Bill AB 381 in October 2025. The change takes effect January 1, 2026, and it stops sweepstakes-style “promotional” casino play that can lead to cash or cash-equivalent prizes.
As the effective date arrives, many sweepstakes casino operators have already exited California, and more are expected to follow as enforcement aligns with the new law.
What AB 381 changes - and why it matters
AB 381 targets websites and apps that run casino-style games of chance while also offering a path to claim real-world prizes. Under the bill’s definition, a sweepstakes casino is a platform that offers games of chance with the opportunity to redeem winnings for cash or cash equivalents.
The measure was backed by the California Nations Indian Gaming Association (CNIGA) and Tribal Nations, who argued the bill would help protect players from gaming sites that operate outside the traditional licensing framework.
The two-currency model at the center of the ban
Sweepstakes casinos commonly separate gameplay into two virtual currencies:
- Gold Coins (GC) - typically used for entertainment-style play with no prize redemption.
- Sweepstakes Coins (SC) (or similar) - used in promotional play, where meeting requirements can allow redemption for real prizes.
AB 381 bans the promotional mode tied to prize redemption. That means the SC-style pathway - the part that can convert play into cash or cash-equivalent prizes - is what becomes unavailable in California starting January 1, 2026.
What players will see after January 1, 2026
For California users, the biggest change is simple: promo-play that leads to redeemable prizes is no longer allowed. Platforms that relied on that model will either block California access, disable sweepstakes-style features, or cease operations in the state.
The source information indicates that popular sweepstakes platforms - including Stake.us and McLuck - are among those expected to stop operating in California under the new rules.
Player impact - what this means for sweepstakes casino users
If you used sweepstakes casinos primarily for the chance to redeem prizes, the practical impact is immediate: the redemption-driven mode is what’s being cut off. Even if a platform still offers games, the prize-claim component is the feature California law is designed to eliminate.
Here’s what California players should be prepared for:
- Promotional/sweepstakes coin gameplay may be blocked (or removed) within the state.
- Redemptions for cash or cash equivalents may no longer be available through sweepstakes-style systems.
- Account access and feature availability can change as operators adjust to the law.
Alternatives that may remain available
The source information points to “social casino” options that run on Gold Coins only - meaning no prize redemption component. One example named is Hard Rock Jackpot Planet, described as a social casino-style app offering 250+ casino-style games and a signup grant of 100,000 Gold Coins.
Because these platforms focus on entertainment play rather than prize redemption, they can be positioned as an alternative for players who want the casino-style experience without the sweepstakes redemption layer.
Closing - a major shift for sweepstakes gaming in California
Starting January 1, 2026, California’s AB 381 reshapes what sweepstakes casino play can look like in the state by eliminating the promotional, prize-redeemable model. For players, that means the sweepstakes coin pathway - and the prize redemption it enables - is the key feature going away.
No purchase necessary. Sweepstakes subject to eligibility. 18+ / 21+ where required. Void where prohibited. Play responsibly.