California’s $2.4 billion sweepstakes market faces extinction as major operators flee ahead of January 1, 2026 deadline
Stake.us, one of the largest crypto-oriented sweepstakes casino platforms in the United States, has announced it will completely shut down operations for all California users on December 30, 2025. The exit comes ahead of California’s Assembly Bill 831 (AB 831), a new state law that effectively bans sweepstakes casinos starting January 1, 2026.
Key Dates for California Players
| December 30, 2025 | Stake.us shuts down all gameplay for CA users |
| December 31, 2025 | Final day to redeem Sweeps Coins balances |
| January 1, 2026 | AB 831 takes effect — sweepstakes casinos banned |
What Stake.us Told California Players
In a message to affected users, Stake.us delivered the news directly:
“We regret to inform you that, due to recent changes in California state regulations, our platform will no longer be available to users within California as of December 30th.”
— Stake.us to California players
The platform further clarified: “Starting December 30, 2025, Stake.us will no longer be available to customers residing in California. From that date, affected accounts will be placed into Redeem Only mode.”
What Happens to California Player Accounts
Once Stake.us enters “Redeem Only” mode for California users, account functionality will be significantly limited:
| Action | Status |
|---|---|
| Log into account | Available |
| View balance | Available |
| Redeem Sweeps Coins | Available |
| Play games (slots, table games) | Blocked |
| Make purchases | Blocked |
| Participate in promotions | Blocked |
| Request postcards / generate codes | Blocked |
| Create new accounts | Blocked |
Important: California players must redeem all Sweeps Coins balances by December 31, 2025. Any unredeemed balance after this date may be forfeited.
Full Shutdown: No Gold Coin Play Either
Unlike some competitors, Stake.us is implementing a complete platform closure in California. This means both Sweeps Coins (redeemable for prizes) and Gold Coins (entertainment-only currency) will be blocked.
This is notable because Gold Coin play is purely for entertainment with no prize redemption, which some operators argue falls outside AB 831’s scope. Competitors like Chumba Casino and platforms under B-Two Operations (McLuck, Hello Millions, Jackpota) plan to continue offering Gold Coin play in California after January 1, 2026.
Stake.us’s decision to exit entirely suggests either a conservative legal interpretation or a strategic business decision to avoid any regulatory gray areas.
What Is AB 831? California’s Sweepstakes Casino Ban Explained
Assembly Bill 831 was signed into law by Governor Gavin Newsom on October 11, 2025, making California the 17th U.S. state to take legal action against sweepstakes casinos.
AB 831 at a Glance
| Signed | October 11, 2025 by Gov. Newsom |
| Effective Date | January 1, 2026 |
| Senate Vote | 36-0 (unanimous) |
| Assembly Vote | 63-0 (unanimous) |
| Penalty | Criminal misdemeanor: up to 1 year jail + $25,000 per violation |
| CA Becomes | 17th state to ban sweepstakes casinos |
What the Law Prohibits
AB 831 makes it illegal to “knowingly and willfully” operate, promote, or facilitate online sweepstakes games that:
- Use a dual-currency model (typically “Gold Coins” for play + “Sweeps Coins” redeemable for prizes)
- Simulate gambling activities (slots, poker, table games, etc.)
- Allow players to redeem virtual currency for real prizes or cash
Extended Liability to Vendors
Critically, AB 831 doesn’t just target operators. The law extends liability to vendors and partners who “knowingly and willfully” support sweepstakes platforms, including:
| Vendor Type | Potential Liability Under AB 831 |
|---|---|
| Payment Processors | Banks, crypto payment providers handling transactions |
| Geolocation Providers | Companies verifying user locations |
| Game Suppliers | Studios providing slot and casino game content |
| Marketing Affiliates | Websites and influencers promoting sweepstakes casinos |
This broad scope is designed to cut off the support infrastructure that sweepstakes casinos rely on to operate.
Who Pushed for the Ban? Tribal Gaming Interests
AB 831 received strong backing from California’s tribal gaming community. The state’s 70+ tribal casinos generate over $9 billion annually under exclusive tribal-state gaming compacts.
Tribal coalitions argued that sweepstakes casinos were undermining their compact-protected gaming exclusivity, exploiting legal loopholes, and siphoning revenue from tribal operations. Key supporters included the California Nations Indian Gaming Association (CNIGA) and the San Manuel Band of Mission Indians.
The Economic Impact: A $2.4 Billion Market Disappears
The California sweepstakes market is massive. According to a report by Eilers & Krejcik Gaming:
The Social Gaming Leadership Alliance (SGLA), which opposed the bill, argued that the ban could cost California over $1 billion in annual economic activity and result in hundreds of millions in lost tax revenue. However, these arguments failed to sway legislators, who passed the bill unanimously.
Other Major Platforms Exiting California
Stake.us isn’t alone. Over 20 sweepstakes casinos have announced California exits ahead of the January 1, 2026 deadline:
| Platform | Last Day to Play | Redemption Deadline | GC Play After? |
|---|---|---|---|
| Stake.us | December 30, 2025 | December 31, 2025 | No |
| Pulsz | December 8, 2025 | December 15, 2025 | No |
| McLuck, Hello Millions, Jackpota | December 29, 2025 | December 31, 2025 | Yes |
| Chumba Casino | December 31, 2025 | December 31, 2025 | Likely |
| LuckyLand Slots | December 31, 2025 | December 31, 2025 | Likely |
| Rolling Riches | December 30, 2025 | December 31, 2025 | No |
What California Players Should Do Now
If you’re a California resident with active sweepstakes casino accounts, take these steps immediately:
- Check your balances on all sweepstakes platforms
- Initiate redemptions now — don’t wait until the last day when systems may be overwhelmed
- Verify your account details — ensure your payment information is correct
- Screenshot your balance as proof in case of disputes
- Note each platform’s deadline — they vary (some as early as December 8)
- Avoid new purchases — there’s no point adding funds you may not be able to use
The Bigger Picture: Sweepstakes Casinos Under Nationwide Pressure
California’s ban is part of a broader crackdown on sweepstakes casinos across the United States. With 17 states now taking legal action against these platforms, the industry faces an uncertain future.
Other states that have banned or restricted sweepstakes casinos include Washington, Idaho, Nevada, Michigan, and several others. The tribal gaming lobby has been particularly effective in states with significant Native American casino operations.
For sweepstakes operators, the California exit represents a significant revenue loss. For players, it means fewer options for legal online casino-style gaming in a state that has repeatedly rejected traditional online gambling legalization.
About Stake.us
Stake.us is the U.S.-facing social casino arm of Stake.com, the world’s largest cryptocurrency casino. While the main Stake.com platform operates internationally with real-money gambling, Stake.us was created specifically to serve the U.S. market using a sweepstakes model to comply with American gambling laws.
The platform has faced controversy and legal challenges in the past, and this California exit adds another chapter to its regulatory struggles in the U.S. market.
For those interested in Stake.com’s international platform, you can explore our gambling calculators and tools. Always gamble responsibly.
Conclusion
Stake.us’s complete withdrawal from California marks the end of an era for the state’s sweepstakes casino players. With AB 831’s unanimous passage and swift implementation, California has sent a clear message: the sweepstakes casino loophole is closed.
Key Takeaways
- Stake.us exits December 30, 2025 — complete shutdown including Gold Coin play
- Redeem balances immediately — deadline is December 31, 2025
- AB 831 takes effect January 1, 2026 — violations carry criminal penalties
- $2.4 billion market impact — California represented 17% of US sweepstakes revenue
- Tribal gaming won — unanimous legislative support backed by casino tribes
For California residents who enjoyed sweepstakes casinos, the only legal options moving forward will be tribal casinos, card rooms, the state lottery, and horse racing. The dream of legalized online gambling in California remains just that—a dream.
