California Moves to Ban Sweepstakes Casinos Amid Industry Backlash
California is currently considering new legislation aimed to ban sweepstakes casinos operations within its borders. This move has drawn a response from the Social and Promotional Games Association (SPGA), which has voiced concern over what it perceives as hurried legislative tactics.
Although the details of the proposed bill remain under wraps, industry figures such as Victor Rocha, Chairman of the International Gaming Association (IGA), have publicly acknowledged its existence. Rocha indicated that he plans to engage in discussions with James Siva of the California Nations Indian Gaming Association (CNIGA) on June 25, and also confirmed that the legislation appears to target a broad range of entities, including financial institutions, gaming suppliers, and geolocation service providers.
The timing of this legislative effort has raised eyebrows within the industry. The SPGA characterizes the move as a “backroom ban,” suggesting that it was pushed through via a “controversial gut and amend maneuver” just hours before a legislative deadline—an approach they see as lacking transparency and public input.
The association’s spokesperson criticized the process, emphasizing that such abrupt action undermines sound policymaking and stifles innovation. They argued that rushing legislation without proper debate or economic analysis sends a discouraging message to entrepreneurs and investors hoping to contribute to California’s digital gaming landscape.
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The controversy echoes earlier warnings issued by the Maine Gambling Control Unit on June 9, which cautioned residents about illegal gambling websites and applications masquerading as sweepstakes-based games. The SPGA responded strongly to these developments, condemning the legislative tactics and expressing concern over the potential consequences for the industry.
They emphasized that California voters did not endorse backdoor deals influenced by powerful political interests, especially amid ongoing crises such as wildfires, housing shortages, and federal legal pressures.
If enacted, this legislation would place California alongside states like Connecticut, Louisiana, Montana, Nevada, and New York—where sweepstakes casinos have already faced bans—marking a significant shift in the state’s gaming landscape. Notably, New York recently approved its ban on June 18, adding to the growing list of jurisdictions moving to restrict sweepstakes-style gaming operations. California Sweepstakes Casinos Ban