California Takes Aim at Thrillzz: Lawsuit Alleges Unlicensed Sports Betting Operation

For sweepstakes casino operators, California is feeling a little smaller and increasingly tougher this year. After the state’s Senate passed AB 831 on a strong mandate, the regulators are back on track and are training their eyes on ‘unregulated gambling operations’. 

Fresh on the list is Thrillz, which is currently facing a lawsuit filed on September 26th, 2025, in the U.S. District Court for the Southern District of California (San Diego).

Per the filed complaint, the plaintiffs argued that Thrillz is operating ‘an illegal sports betting business’, and violates numerous provisions of the state’s Penal Code. In addition to the two plaintiffs, the complaint was co-authored by seven law firms seeking restitution on behalf of the state’s class members.

Thrillz’s Operations a Violation of State Laws?

In the Rahmani et al v. Thrillzz Inc. et al, plaintiffs Jared Rahmani and Gurgen Galstyan argued that the popular sweepstakes betting site has violated state laws. Specifically, the complainants explained that the site runs an unlicensed sports betting operation, using the ‘sweepstakes sportsbook model’, which isn’t permitted in California. Thrillz is facing allegations of fraud, which were filed under 28 U.S.C. § 1332 for Diversity Fraud.

While the specifics aren’t detailed in available public documents, the nature of the complaint indicates potential fraud. The plaintiffs are requesting a jury trial.

This latest complaint reflects the growing pressure and legal challenges against sweepstakes sportsbook operators, and could potentially impact Thrillz's operations and the future of other popular sweepstakes casinos.

What Thrillz’s Exit Means for the Operator and the Sweeps Model in General

The complaint against Thrillz in California creates a ripple effect on other sweepstakes sportsbooks and the industry:

• Thrillz case highlights increased regulatory pressure on sweepstakes sportsbooks, despite their ‘sweepstakes model’.
• Complainants say the operator violates California Penal Code Section 337, which bans bets on contests and uncertain events without a license.
• Violations under this law may result in felony or misdemeanour charges, with penalties of up to three years imprisonment or fines of up to $5,000.
• Sweepstakes sportsbook operators are forced to recalibrate their strategy, as California and other states are rushing to “close legal loopholes”.
• For players, this development means fewer options for sweepstakes-style betting.
• Operators are now looking at alternative gaming models, like skill-based or completely free-to-play games.

Thrillz’s ongoing case in California shows the volatility and increasingly risky landscape for operators. The operator plans to face the challenge, but the future remains uncertain.

REFERENCES:

• Justia
• Daniel Wallach X Page