Sweepstakes casinos in California

PRIMARY-SOURCE NOTE

California made both the game and knowing support for it a misdemeanor

What the law does

Penal Code section 337o works in two layers¹. Subdivision (a) bars any person or entity from operating, conducting or offering an online sweepstakes game in California; subdivision (b) bars a financial institution, payment processor, geolocation provider, gaming content supplier, platform provider or media affiliate from knowingly and willfully supporting one, directly or indirectly¹. A game is covered only when four conditions hold together: it is played online or on a device, it runs on a dual-currency system where purchased or free coins can lead to a prize, it simulates gambling, and it awards cash or cash equivalents¹. A violation is a misdemeanor under subdivision (d)¹. AB 831 also rewrote a paragraph of Business and Professions Code section 17539.1, so a dual-currency simulated gambling program offered on a website or an online application is listed there as an unfair act or practice as well⁴.

What has happened since

AB 831 became Chapter 623 of the Statutes of 2025, and section 3 of that chapter is what added section 337o to the Penal Code¹. The bill's title names its other job, amending section 17539.1 of the Business and Professions Code². The new section took effect on January 1, 2026. That date is the only entry in our event history for California, logged as "AB 831 (Penal Code § 337o) takes effect", and the history holds no prosecution, attorney general action or court ruling under the section since. 114 of the operators we track are recorded as not accepting California players, and the one exit we hold is DexyPlay (June 29, 2026), which came about half a year after the effective date.

What is still open

The bill's first section says the Legislature meant to reach people who knowingly and intentionally engage in, promote or facilitate these games, not ancillary services used without that intent³. Our record holds no reading of where that line falls for a payment processor or media affiliate. The definition covers only games that award cash or cash equivalents¹, and the amended section 17539.1 says its rewritten paragraph does not make a no-cash game unlawful⁴. Nothing on file says whether a free mode run beside a redeemable one falls outside both. One operator's rules on file keep California accounts open for Gold Coins only, with sweepstakes play barred. Other operators' terms we last read do not list California as excluded, and our record does not show what happens to a sign-up there.

Enforcement search

Our event history for California has one entry, the date the new Penal Code section took effect¹, and no prosecution, attorney general action or court ruling under it.

Question still open

Where the knowing and willful support clause stops for a payment processor or media affiliate that serves many merchants, and whether a free mode run beside a redeemable one falls outside the section, has no court or agency reading in our record.

Sources for this note

1. California Penal Code section 337o (California Legislative Information) accessed Sep 28, 2026
2. AB 831 (2025-2026) bill status and history (California Legislative Information) accessed Sep 28, 2026
3. AB 831 (2025-2026) chaptered bill text (California Legislative Information) accessed Sep 28, 2026
4. California Business and Professions Code section 17539.1 (California Legislative Information) accessed Sep 28, 2026

Sources rechecked 2026-09-28. Next scheduled review 2026-12-28.