Gov. Gavin Newsom signed California’s sweepstakes casino ban into law over the weekend, with the legislation set to take effect on Jan. 1.
The ban slams the door on a lucrative market for the sweepstakes casino industry, which is projected to earn more than $4 billion in 2025.
Sweepstakes casinos are online platforms that offer casino-like gaming that users can play for free with Gold Coins, or enter contests for prizes with Sweeps Coins. Generally speaking, users can buy Gold Coins but not Sweeps Coins.
The sweeps casino industry has come under fire over the past year for several reasons. First, regulated gaming leaders in states across the country have voiced frustration over the fact that sweeps casinos aren’t governed by the same regulations as legal online casinos.
