Carnival Citi Exits California Amid Looming Ban on Sweepstakes Casinos
Carnival Citi has joined the growing list of sweepstakes casino operators shutting down in California, pulling its games from the state. As first reported by Sweepsy.com, the operator’s decision comes in direct response to mounting legal pressure and the imminent signing of Assembly Bill 831 (AB 831) by Governor Gavin Newsom.
AB 831: The Bill Behind the Shake-Up
At the center of the exits is AB 831, legislation that bans sweepstakes casinos using the “dual currency” model — where players purchase virtual coins while receiving bonus credits that can be redeemed for cash prizes.
The bill cleared its final hurdle in mid-September with a 63-0 vote in the Assembly concurring with Senate amendments. Newsom has until October 12 to sign or veto the measure. If it becomes law, the ban would take effect on January 1, 2026, with violations punishable by fines of up to $25,000 and potential jail terms of up to one year.
Importantly, the measure extends liability to third parties who “knowingly and willfully” aid sweepstakes operations, including payment processors, game providers, and affiliate marketers.
That provision has added to the exodus, with suppliers unwilling to risk exposure in the country’s largest state.
Carnival Citi and High 5 Casino Withdraw
Carnival Citi’s exit appears directly tied to AB 831. The operator quietly added California to its excluded states list as the bill reached the governor’s desk.
High 5 Casino’s departure, however, reflects a more complex set of pressures. The company is currently facing a class action lawsuit in San Francisco alleging illegal gambling activity.
A judge recently denied its motion to compel arbitration, stripping away a key legal shield commonly relied upon by sweepstakes operators.
Whether the lawsuit or the pending legislation was the decisive factor remains unclear, but the timing strongly suggests both played a role.
A Hostile Legal and Commercial Environment
The exits come against a backdrop of intensifying legal action in California. In August, the Los Angeles City Attorney filed a sweeping lawsuit against Stake.US and major suppliers Evolution and Pragmatic Play, accusing them of running an illegal gambling scheme. Days later, supplier Playtech announced it would pull its titles from all sweepstakes platforms in the state.
The combined legal and legislative pressure has created what industry observers describe as a “legal and commercial one-two punch” that leaves little room for operators to maneuver.
Recommended