California’s gaming landscape is tightening further as Thrillzz Sweepstakes Sportsbook faces a lawsuit alleging violations of state betting laws. The case underscores a growing trend: states are moving swiftly to close perceived loopholes in the sweepstakes gaming model.
The lawsuit, filed in the U.S. District Court for the Southern District of California, claims Thrillzz engaged in prohibited betting activities under the state penal code. This comes on the heels of Thrillzz exiting Arizona after a cease-and-desist order, making it clear that multiple states are no longer willing to overlook sweepstakes platforms that blur the line between promotional games and regulated sports betting.
Growing Pressure on Sweepstakes Operators
Thrillzz’s challenges reflect a larger pattern in the U.S. market. Increasingly, regulators in states like California, Arizona, Montana, and New Jersey are classifying sweepstakes sportsbooks and casinos as illegal gambling operations rather than promotional models. The fact that Thrillzz now excludes users from 16 states signals how quickly the operating environment is shifting.
This pressure is further heightened by legislative activity. California’s AB 831 bill is poised to explicitly criminalize sweepstakes gambling platforms, putting operators in an even more precarious position. Even if political calculations delay its final approval, the trend toward stricter enforcement appears inevitable.
What This Means for the Industry
The lawsuit against Thrillzz is more than a single operator issue—it highlights the volatility and risk of operating in the sweepstakes betting space without a clear legal foundation. Companies that once thrived on ambiguity are now facing litigation, market exits, and reputational risks.
For consumers, this means fewer options in states that once allowed such platforms to operate in a grey area. For operators, it’s a call to reassess compliance strategies, legal frameworks, and long-term viability. Those who adapt successfully may still find opportunity in states with clearer rules or in alternative models that prioritize skill-based contests or free-to-play engagement without cash-equivalent rewards.
SCCG’s Perspective
At SCCG Management, we recognize both the challenges and opportunities presented by the evolving sweepstakes market. Our Sweepstakes Advisory Services and Social Gaming expertise provide clarity and guidance for companies navigating these regulatory shifts. From compliance strategies to business development, we help partners identify sustainable paths forward in this complex environment.
Meet with the leading Gaming Advisory firm to explore how we can support your journey in sweepstakes and social gaming.
