The Future of Geolocation for the Social Gaming Industry

Social gaming is experiencing unprecedented regulatory scrutiny, with states across the U.S. implementing new laws that directly impact how online social games with sweepstakes promotions can operate. For operators in the social gaming space, particularly those offering online social games that use sweepstakes, staying compliant means being prepared for the rapid changes that lie ahead.

A Rapidly Evolving Regulatory Landscape

The regulatory environment for social gaming has become increasingly complex. New York recently passed Senate Bill S5935A, which prohibits online sweepstakes games using dual-currency systems; the bill is pending the governor’s signature. Meanwhile, New Jersey’s sweepstakes casino ban took effect on August 14, 2025, after Governor Phil Murphy signed bill A5447 into law.

California represents perhaps the most significant development on the horizon. The California Legislature recently passed Assembly Bill 831 (AB-831), with final approval issued by the assembly on September 12, 2025. Governor Gavin Newsom will now decide whether to sign it into law or veto it. If enacted, AB-831 would go into effect on January 1, 2026, and would impose a statewide ban on online sweepstakes casinos.

The scope of these regulations extends beyond just operators. One of the key provisions of AB-831 is the expansion of criminal liability to entities that knowingly and willfully support online sweepstakes games, including payment processors, gaming content suppliers, financial institutions, marketing affiliates, geolocation providers, and platform providers. This broad approach demonstrates how comprehensive social gaming compliance must be across the entire ecosystem supporting online social games.

Multiple states have taken action against sweepstakes gaming through various approaches:

• Montana became the first state to officially ban sweepstakes casinos in 2025 with Senate Bill 555, effective October 1, 2025.
• Connecticut passed Senate Bill 1235, which includes language banning any unlicensed entity that “facilitates participation in any real or simulated online casino gaming or sports wagering.”
• Nevada enacted Senate Bill 256 to strengthen enforcement against unlicensed gambling operators, including “sweepstakes casinos.”
• Several states including Maryland, Louisiana, Delaware, and Arizona have issued cease-and-desist orders or taken other regulatory enforcement actions.
• States like Michigan, Washington, and Idaho have long-standing restrictions that effectively exclude sweepstakes operations.

The Need for Proactive Social Gaming Compliance Solutions

This dynamic landscape means operators of online social games with sweepstakes promotions need more than reactive compliance strategies, particularly solutions that can adapt quickly to changing regulations. The key is having a geolocation platform that offers both flexibility and rapid response capabilities.

For social gaming geolocation compliance, operators should prioritize solutions that can:

• Enable real-time geographic restrictions: When new legislation passes, operators need the ability to immediately exclude users from affected jurisdictions while maintaining service in compliant areas.
• Support complex rule sets: Different types of social gaming may have different geographic restrictions. Casino-style social games might face different regulatory requirements than other online social games, requiring sophisticated rule management.
• Handle tribal land considerations: In some states, federally recognized tribal lands may have different compliance requirements than the surrounding jurisdiction, requiring precise geographic boundary management.
• Provide emergency response capabilities: When unexpected regulatory developments occur, operators need geolocation partners who can implement changes within hours, not days or weeks.

For more detailed guidance on how to stay compliant, download our Sweepstakes Geolocation Compliance Checklist here.

Locance’s Approach to Social Gaming Compliance

Locance addresses these challenges through highly configurable geolocation solutions designed specifically for the evolving needs of social gaming compliance. The platform’s flexibility allows operators to adapt quickly to changing regulations without requiring extensive code changes on their end.

• Rapid response timeline: For standard requests, Locance can implement social gaming geolocation changes within 24-48 hours of client confirmation. For emergency situations, such as sudden regulatory changes, modifications can be made within hours of approval.
• Dynamic rule management: Because Locance manages rule sets on behalf of customers, we can quickly add zones, remove zones, or create exclusion areas as needed. If a jurisdiction legalizes certain activities, areas can be opened up rapidly. When new restrictions are implemented, exclusion zones can be established immediately.
• No code changes required: In most cases, when Locance implements geographic restrictions or modifications, operators don’t need to make changes to their own code. The platform automatically treats newly restricted areas as no longer allowed or adds newly permitted areas as available.
• Advanced planning capabilities: When operators have advance notice of pending legislation, Locance can work with clients to prepare rule sets for implementation on specific dates, ensuring social gaming geolocation compliance the moment new laws take effect.

For a practical guide on geolocation compliance for gaming, download our Gaming Compliance White Paper.

Real-World Applications

The practical benefits of flexible social gaming geolocation solutions are evident in recent regulatory changes:

• When new legislation such as New Jersey’s sweepstakes ban came into effect, operators needed to immediately exclude users in the affected state from their platforms. With Locance, users in those states become automatically excluded with a configuration update without disrupting service for users in other jurisdictions.
• When tribal land exclusions must be applied, Locance helps operators refine their geographic boundaries within hours of confirmation, ensuring compliance while maximizing their addressable market.

The complexity increases when operators offer different types of social gaming experiences. Some platforms provide both free-to-play social games and games with prize redemption features. Each may have different geographic compliance requirements, necessitating sophisticated rule management that can differentiate between game types and apply appropriate restrictions.

Essential Features Checklist for Social Gaming Operators

When evaluating geolocation solutions for social gaming compliance, operators should ensure their provider offers:

• Real-time rule set modifications with minimal turnaround times
• Complex boundary management including tribal land considerations
• Multiple rule sets for different game types and compliance scenarios
• Emergency response capabilities for urgent regulatory changes
• Automated exclusion/inclusion that doesn’t require operator code changes
• Advanced planning tools for known upcoming regulatory changes
• Comprehensive geographic precision to handle state, county, and tribal boundaries
• Audit trails and reporting for compliance documentation

Preparing for Continued Evolution

The regulatory landscape for online social games that use sweepstakes will continue evolving as more states examine their approaches to social gaming compliance. Industry groups like the Social Gaming Leadership Alliance (SGLA) are advocating for appropriate oversight that recognizes the unique entertainment value of social online games while protecting players, suggesting that regulation rather than outright bans may become more common.

However, the current trend shows states are taking decisive action. If California enacts AB-831, it will become the sixth state overall and the largest in the U.S. to ban dual-currency sweepstakes casinos in 2025, potentially setting a precedent for more jurisdictions to consider outright bans.

For operators in this space, it’s clear that social gaming geolocation compliance requires having the infrastructure to respond immediately when regulations change tomorrow. Operators of online social games with sweepstakes promotions need geolocation partners who understand the unique challenges of social gaming compliance and can provide the flexibility, speed, and precision required to navigate this evolving landscape.

If you want to ensure your social gaming platform stays compliant amidst rapid changes, Locance is here to help. Contact us to learn more about our geolocation solutions designed specifically for the social gaming industry.