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The California Senate has tweaked Assembly Bill 831 (AB 831), a proposal that aims to shut down online sweepstakes casinos in the state. Lawmakers stressed that the bill isn’t meant to interfere with state lottery games or the kind of sweepstakes promotions that pop up every so often.
The updated language makes it clear: “(a) It is unlawful for any person or entity to operate, conduct, or offer an online sweepstakes game in this state.”

News: California bill to prohibit online sweepstakes casinos (AB 831) has been amended by CA Senate on 3rd reading to specify that it would not criminalize state lottery games or traditional sweepstakes promotions conducted on "limited and occasional" basis. pic.twitter.com/H8p8IsedWY

— Daniel Wallach (@WALLACHLEGAL) September 4, 2025

It also declares: “(b) It is unlawful for any entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly and willfully support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within this state.”
Some of the Senate’s tweaks were more about wording than substance. For example, “gambling-themed games” got trimmed down to just “gambling,” “casino-style table games” was simplified to “table games,” and the phrase “and willfully” was added after “knowingly.”
The bill also explains that these rules will not interfere with legal gambling operations such as casinos licensed under the Gambling Control Act or with the California State Lottery.
It goes on to clarify: “The bill would specify that these provisions do not make unlawful game promotions or sweepstakes conducted by for-profit commercial entities on a limited and occasional basis as an advertising and marketing tool that are incidental to substantial bona fide sales of consumer products or services and that are not intended to provide a vehicle for the establishment of ongoing gambling or gaming.”
Following these updates, the measure has progressed to a second Senate reading.
AB 831 not expected to outlaw traditional sweepstakes promotions in California

Both of those arguments were specious. The Starbucks-type promotions were already protected by Section 17539.1's existing "limited and occasional" language. And state lottery games could not be criminalized since they are specifically authorized by the CA Constitution and CA law.

— Daniel Wallach (@WALLACHLEGAL) September 4, 2025

Sports betting attorney Daniel Wallach said the updated language resolves misconceptions about the bill’s reach. “This language addresses the false contentions that AB 831 would outlaw traditional sweepstakes promotions like those offered by Marriott, Microsoft and Starbucks, as well as the California Lottery’s ‘2nd Chance Program’ online games,” he wrote.
He continued: “Both of those arguments were specious. The Starbucks-type promotions were already protected by Section 17539.1’s existing ‘limited and occasional’ language. And state lottery games could not be criminalized since they are specifically authorized by the CA Constitution and CA law.”
Featured image: Canva
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The Michigan Gaming Control Board (MGCB) has sent cease and desist letters to four online casinos that officials say were unlicensed. The sites are Betty Wins, Orbit Spins, Pacific Spins Casino, and Yabby Casino, all operated by Tech Zone, Inc., which is registered offshore in the Union of Comoros. It is said to be part of a broader effort by the Michigan board to crack down on unlicensed online casinos.
This includes issuing 100 cease-and-desist letters to unauthorized gambling operators in June.
Michigan says unlicensed online casinos ‘put consumers at serious risk’
“These offshore operators lure players with flashy ads and promises of big winnings, but in reality, they put consumers at serious financial and personal risk,” said Henry Williams, MGCB Executive Director. “We will continue to take strong action against unlicensed sites to ensure gambling in Michigan is legal, fair, and secure.”
Michigan law only allows operators licensed by the MGCB to offer online gaming and sports betting. The agency says Tech Zone’s four brands were illegally targeting Michigan players and breaking several state laws, including the Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act, and parts of the Michigan Penal Code.
The board explained that unlicensed gambling sites often skip independent testing to make sure games are fair, don’t give players a way to resolve disputes, and can leave people vulnerable to fraud, identity theft, or losing money. Each of the operators has been told to stop offering games in Michigan, and the board said more enforcement action could come with help from the state attorney general’s office.
The MGCB is also continuing its “Play It Smart, Michigan” campaign, which helps people understand the difference between legal and illegal gambling options. Licensed operators are listed on the board’s website, and a “Legal vs. Illegal Gaming” page offers tips for spotting unregulated sites.
“Illegal operators may use familiar branding or social media ads to appear trustworthy,” Williams said. “But if the site isn’t licensed by the MGCB, it isn’t safe. We encourage all players to check before they bet.”
Featured image: Michigan Gaming Control Board
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Polk County Sheriff’s Department and Auburndale Police Department have joined forces to search Florida stores for illegal gambling machines.
In a video shared to Facebook by the Polk County Sheriff’s Department, Polk County Sheriff Grady Judd described more evidence being seized after the two law enforcement agencies raided 11 stores as part of an undercover illegal gambling investigation.
The video shows officers loading gambling machines, presumably found to be illegally operating, onto a truck. The search appears to have taken place at an unrelated business, with a sign in the background suggesting it’s some sort of deli or eatery. A news conference with more information on the operation and the wider efforts to prevent illegal gambling will be held at 1 pm on Thursday, September 4.
Sheriff Judd said that the operation was part of a joint operation between Polk County Sheriff’s Department and Auburndale Police Department. Auburndale is a city within Poly County, Florida.
“This is what happens when law enforcement agencies partner up,” said Polk County Sheriff Grady Judd. “Good things happen, bad guys go to jail.”
Illegal gambling in Florida and across the US
Last month, nearly 250 illegal slot machines were seized in another team-up effort between the Florida Gaming Control Commission (FGCC) and the Port Richey and New Port Richey police departments, highlighting the importance of inter-agency cooperation once again. The operation spread across five locations and marked a wider crackdown on illegal games across the country.
A similar operation took place in San Francisco, while recent data showed that illegal wagering takes up nearly a third of the US market. That’s estimated to cost the US $15.3 billion a year in taxes, with offshore platforms getting a total turnover of $53.9 billion, but also exposes users to greater risk of fraud, theft, and gambling-related harm.
Featured image: Polk County Sheriff’s Department
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Polymarket has been given the ‘green light’ by the CFTC, as announced by the prediction market’s CEO on social media.
In a notice shared on September 3, the Commodity Futures Trading Commission (CFTC) confirmed that it had taken “a no-action position regarding swap data reporting and recordkeeping regulations for event contracts”.
“The divisions will not recommend the CFTC initiate an enforcement action against either entity or their participants for failure to comply with certain swap-related recordkeeping requirements and for failure to report to swap data repositories data associated with binary option transactions and variable payout contract transactions executed on or subject to the rules of QCX LLC and cleared through QC Clearing LLC, subject to the terms of the no-action letter,” concluded the statement.
CEO Shayne Coplan took to X to celebrate Polymarket returning to the US, writing: “Polymarket has been given the green light to go live in the USA by the CFTC. Credit to the Commission and Staff for their impressive work. This process has been accomplished in record timing. Stay tuned.”

Polymarket has been given the green light to go live in the USA by the @CFTC.
Credit to the Commission and Staff for their impressive work. This process has been accomplished in record timing.
Stay tuned https://t.co/NVziTixpqO
— Shayne Coplan (@shayne_coplan) September 3, 2025

Polymarket’s place in the US
The CFTC and the Justice Department ceased their investigations of whether Polymarket was accepting bets from US-based individuals in July and didn’t file any charges against the company. This occurred against the background of prediction markets in general facing pressure from the public and authorities, particularly around their activity in states where sports betting is illegal.
Polymarket then announced that it had closed its acquisition of QCX, with Coplan stating that this was “a significant step” toward establishing Polymarket in the US.
Just last week, Donald Trump Jr. joined Polymarket’s advisory board and injected a hefty financial investment via 1789 Capital, the investment firm of which he is a partner. This was yet another signal of Polymarket’s focus on the US.
Featured image: Polymarket
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The major iGaming content providers Evolution and Pragmatic Play have pulled their content from Stake.us for users in California after a civil enforcement filed by the City of Los Angeles on August 29.
Led by the City Attorney, Hydee Feldstein Soto, the lawsuit alleges that Stake is essentially an illegal online gambling service, hidden as a “social casino”, which violates various laws in the Golden State. 
Beyond law breaches on gambling, unfair competition, and false advertising, the lawsuit further claims that Stake’s dual currency system of gold coins and sweepstakes coins replicates real money gambling.
Crucially, the legal action names Evolution (including its NetEnt, Red Tiger, Big Time Gaming, and Nolimit City subsidiaries), Pragmatic Play, and Hacksaw Gaming as accomplices for knowingly licensing games to an unlicensed operator. 
As a direct response, Evolution and Pragmatic Play immediately shut down their content on Stake in California to mitigate legal risks as well as for reputational reasons. 

Breaking: Pragmatic Play is actually pulling its games from all sweepstakes casino operations in the US. It has become the first major provider to exit the controversial sweepstakes casino vertical amid regulatory pushback and lobbying from traditional gaming interests.
— Zak Akoo (@ThomasAkoo) September 2, 2025

Assembly Bill 831 awaits full Senate vote
Pragmatic did not stop at the California jurisdiction, as the company announced a full exit from the United States sweepstakes market, citing “regulatory developments and evolving legislation”, signaling a potential shift closer to regulated iGaming markets.
This comes at a time when California’s Assembly Bill 831 is advancing, with the proposed legislation set to enforce a full ban on sweepstakes casinos and to unleash criminal penalties on suppliers providing content for their operations. 
This is an ongoing situation that major players like Evolution and Pragmatic Play are monitoring, with AB831 awaiting a full Senate vote after clearing the Senate Appropriations Committee
Stake.us has refuted the allegations by insisting its sweepstakes operation complies with all existing laws and said it will defend its position.
Last week, a third California Tribe declared its open opposition to Assembly Bill 831, following the trend of the Kletsel Dehe Wintun Nation and the Big Lagoon Rancheria. 
The communities have argued that AB831 lacks unanimous support among California tribes, which has advanced without “meaningful consultation of broader tribal interests, and threatens our inherent right to create legitimate revenue streams to support our people.”
ReadWrite has approached Evolution, Pragmatic Play, and Stake US for further comment.
Image credit: Stake
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