Another prominent sweepstakes casino operator has exited California, even though Gov. Gavin Newsom hasn’t yet made a decision on the bill that outlaws sweeps casinos in the state.
Carnival Citi has added California to its list of excluded states. Carnival Citi has also added Arizona to that list. The Arizona Department of Gaming has sent several rounds of cease-and-desist letters to sweeps operators lately, though Carnival Citi, owned by Citi Media Tech, LLC, hadn’t received one.
Timeline for progress with AB831, effective date
California Assembly Bill 831 passed unanimously in the Assembly on Sept. 12, clearing the penultimate hurdle for passage. The bill now sits on Newsom’s desk. He has until Oct. 12 to either sign or veto the bill. AB831 bans online sweepstakes casinos in California, in addition to criminalizing any entity that “knowingly and willfully” supports the industry.
The Social Gaming Leadership Alliance is putting in its lobbying work, trying to get Newsom to veto the bill.
“It is incredibly disappointing that the California Assembly decided to pass AB 831,” Jeff Duncan, the SGLA’s executive director, said in a statement. “Beyond the fact that this bill would worsen economic disparities among California tribes, put California to the back of the line in terms of digital innovation in this space, and take away a popular form of entertainment for residents, it will immediately strip $1 billion out of the state’s economy.
“We implore Governor Newsom to veto this bill and instead open the door for online social games to support economically disadvantaged tribal nations and the state’s economy while positioning California as a leader in next-generation gaming technology.”
In an interview earlier this month with Sweepsy, Princeton Public Affairs Group partner Bill Pascrell III, an influential gambling industry attorney, lobbyist and advisor, hinted there may be a chance Newsom would listen to arguments from sweeps stakeholders.
“Governor Newsom is a very smart, adept, nimble guy, and I think he appreciates the potential if this is regulated,” Pascrell III said.
However, most industry chatter suggests it’s most likely Newsom signs the bill into law.
If he does, AB831 would officially become law on Jan. 1, 2026.
Other factors likely contributed to High 5 Casino’s exit
Carnival Citi becomes the second known sweeps casino to pull out of California, and the first that is in all likelihood a direct result of AB831 passing.
High 5 Casino left the California market earlier this month. However, High 5 is the defendant in a lawsuit in California right now — one that stands out from the litany of lawsuits facing sweeps operators at the moment, as a judge denied High 5’s motion for arbitration. Arbitration is usually a safety net for sweeps casinos in these types of lawsuits, so arbitration being denied makes this case one to watch — and a potentially compelling reason for High 5 to pull out of the state.
Consequently, it’s unclear if High 5 left due to the lawsuit or because AB831 was about to pass.
Why leave Arizona?
Carnival Citi leaving Arizona follows a string of enforcement actions by the Arizona Department of Gaming, which recently issued cease-and-desist orders to four operators — Thrillzz, Fliff, Betty Sweeps, and Pulsz. Each of those platforms withdrew soon after receiving their letters. Previously, the ADG also sent cease-and-desists to Modo.us, Stake.us, High 5 Casino, and Rebet.
So why pull out? One possibility is that Carnival Citi received its own cease-and-desist that has not been publicly disclosed. Or perhaps it’s just being proactive. By leaving Arizona now, Carnival Citi may be sidestepping regulatory heat and avoiding the risk of future enforcement.
Given the ADG’s track record of publicizing its cease-and-desist actions, the second option seems more likely. Carnival Citi may just be getting ahead of the game.
