Fifth Sweepstakes Casino Shuts Down In California

Written By:   Author Thumbnail Matthew Bain
Author Thumbnail Matthew Bain
Matthew Bain has covered the legal gambling landscape in the US since 2022, both as a content director at Catena Media and now as a freelancer for Comped and Sweepsy. Before that, he spent six years as a sports reporter ...
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The California sweepstakes casino exit rolls on. A fifth operator has now packed its bags and left the Golden State, bowing out months before the January 1, 2026 deadline that’s sending shockwaves through the industry.

A fifth sweepstakes casino has shut its doors in California in advance of the industry becoming illegal in the state on Jan. 1, 2026.

SweepsUSA notified its California players last week that their accounts had been deactivated due to the recent “legislative changes” in California.

“Regarding your account deactivation, we regret to inform you that due to recent legislative changes under California Assembly Bill AB 831, our platform is no longer able to offer services to players residing in California,” the email to players read. “This new law directly impacts the type of online entertainment we provide. In order to remain compliant with all applicable state and federal regulations, we are required to discontinue access to our platform for California residents, effective immediately.

“We sincerely thank you for being a part of our community and for your support during your time with us. We truly value your trust and understanding as we navigate these new legal requirements. If you have any further questions or need assistance with your redemption, please don’t hesitate to contact us.”

Which other sites are already out of CA?

So far, in terms of what’s publicly known, a handful of sweeps casinos have departed California since early September, when it became clear Assembly Bill 831, which bans sweeps casinos, would pass. (It ultimately passed on Sept. 12, and Gov. Gavin Newsom signed it in October.)

Carnival Citi, Ruby Sweeps, and Dara Casino all left the state after AB831 passed. High 5 Casino, which is also facing a lawsuit in California, originally planned to leave the state in the first week of September. However, plans changed, and High 5 Casino instead had its final day in California on Oct. 19.

Now, SweepsUSA joins the exit party.

WOW Vegas, on the other hand, intends to remain live and operational in California right up until sweeps casinos officially become illegal in the state when the calendar turns to 2026, per information obtained by Sweepsy.

Operators are adjusting their overall U.S. strategies, as well, in response to California’s market closure.

Rather than waiting to see how things play out, some have re-opened their doors elsewhere. Baba Casino, for instance, has relaunched in six states it had previously exited. Spree resumed service in Alabama and Georgia. These moves appear to be part of an effort to strengthen their presence — and revenue streams — in other regions to ease the blow of losing California.

A1 Development LLC, meanwhile, has reduced the age limit for three of its platforms — NoLimitCoins, Fortune Wheelz, and Tao Fortune — from 21 back down to 18. The shift, which ends a five-month stint of being 21-plus, may also be designed to help offset the anticipated financial hit from losing access to California users.

Not every company has that flexibility. Vivaro.us, a smaller platform, officially shut down operations on Oct. 1, citing “increasing regulatory uncertainty surrounding sweepstakes casinos in the United States” as the reason.

Is the CA ban actually ‘effective immediately’?

In its note to players, SweepsUSA said they are “required” to shut down their platform in California “effective immediately.”

That isn’t entirely accurate.

Yes, SweepsUSA and all sweeps casinos are required to stop offering their Sweeps Coin games in California or else they’ll face criminal charges — but only starting Jan. 1, 2026. Technically, by the letter of the law, a sweeps operator could keep its Sweeps Coin games live until 11:59 p.m. the night of Dec. 31, 2025, and then turn them off the second the clock strikes midnight, and that operator would not be in violation of the law.

Of course, an entire platform shutdown isn’t that simple and, in reality, operators won’t take that drastic of a last-second approach. But they also don’t necessarily need to pull out of the state at this moment, unless they’ve internally weighed options and an immediate exit works best in their minds.

Clearly, that was the case with SweepsUSA.

And, at least on paper, it’s reasonable to see why some sweeps casinos — especially the smaller ones that can’t afford even a sniff of legal issues — are operating with an abundance of caution in regards to California. 

Because, among the sweepstakes bans passed in 2025, AB831 stands out for its broad scope.

The bill doesn’t just criminalize the operators of sweepstakes casinos themselves. It extends liability to nearly anyone involved in supporting them. According to the bill’s digest, this includes “any entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate” that knowingly or willfully supports the operation of an online sweepstakes game in California.

That language encapsulates a wide range of potential partners, and for some companies, the risk isn’t worth it. A single compliance mistake in California could create legal exposure for a sweeps operator’s partners, perhaps prompting them to reconsider their relationships with that operator altogether.

Forecasting the rest of the 2025 legislative session

When it comes to legislative bans, California will probably be the last in 2025.

There are two other states with active bills that would outlaw sweeps casinos. However, neither are expected to make any noise.

Ohio’s House Bill 298 has all but stalled out, if you take Gov. Mike DeWine and House Speaker Matt Huffman at their word. Huffman directly said he doesn’t expect any further gambling expansion to happen this year, and the main component of HB298 is an expansion to legalize real-money online casinos.

Massachusetts’ House Bill 4431 follows the same model: Legalize real-money iGaming while also booting sweeps casinos out of the state. The hard-to-crack resistance to legalizing iGaming that has gripped the U.S. in recent years is more than likely dooming HB4431, which has generated zero buzz since getting introduced in August.

Prominent voices in the anti-sweeps movement, including U.S. gaming attorney Daniel Wallach, have suggested on LinkedIn that Texas Attorney General Ken Paxton may get involved and take action against sweeps gaming in his state this year. That’s the only action possible in Texas for a while, as the 2025 legislative session is over and the Texas Legislature doesn’t meet again until 2027. So, when it comes to a law banning sweeps casinos, the earliest that could happen in Texas is 2027.

Elsewhere, other Attorneys General or state gaming regulators can also take action against sweeps casinos via methods like cease-and-desists, even if the state legislatures aren’t in session. However, these actions don’t carry the same weight as a legislative ban.

About The Author
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Matthew Bain
Matthew Bain has covered the legal gambling landscape in the US since 2022, both as a content director at Catena Media and now as a freelancer for Comped and Sweepsy. Before that, he spent six years as a sports reporter and editor for the USA TODAY Network, primarily at the Des Moines Register. Through his various roles, Matthew has racked up experience in the casino, sports betting, and lottery markets.