Carnival Citi, which is considered to be a prominent sweepstakes operator, has exited California. This comes at a time when Governor Gavin Newsom is considering AB831, a bill that would ban online sweepstakes casinos in the state starting on January 1, 2026. Gov. Newsom’s decision will come by October 12, 2025. The move signals growing pressure on the industry as the legislation awaits Newsom’s decision.
Carnival Citi decided to leave California early, months before the state’s sweepstakes ban is potentially set to start in January 2026. By stepping away now, the company gives itself room to adjust its strategy before the new law takes effect.
The casino also pulled out of Arizona after regulators there began cracking down on sweepstakes operators with cease-and-desist orders. Together, these moves show that Carnival Citi is trying to stay ahead of legal challenges, even if it means giving up two of its biggest markets.
Carnival Citi’s withdrawal makes it the second major sweepstakes casino to leave California, after High 5 Casino. High 5 recently left California in early September 2025, following a court decision that denied its request for arbitration in an ongoing lawsuit, exposing the company to further legal risk.
High 5’s exit was different from Carnival Citi’s because it was in direct response to legal pressures, whereas Carnival Citi took a proactive approach to leave even before Gov. Newsom made his final decision on AB 831.
For players in California, Carnival Citi’s exit means fewer options in the sweepstakes casino market, which has already begun shrinking under legal and regulatory pressure. While those in other states can still access the platform, Californians will need to look for alternatives as the industry braces for a possible statewide ban.
The move also raises concerns for players in other restricted states, who may see more operators pulling out if legal risks continue to rise. This shifting landscape highlights the uncertain future of sweepstakes casinos and the importance of keeping track of which platforms remain available.
Despite the recent exits of Carnival Citi and High 5 Casino, several sweepstakes casinos continue to operate in California for now. Platforms like Chumba Casino, LuckyLand Slots, and Global Poker are still available to players, offering the same dual-currency model that keeps them within sweepstakes law.
The key question is whether these platforms will follow Carnival Citi’s lead and exit before the law takes effect. Some may choose a proactive approach to avoid legal or financial risks down the line, like Carnival Citi, especially if enforcement actions begin sooner than expected.
Others could decide to remain until the very last moment, aiming to maximize their presence in California, which is still the largest sweepstakes casino state market in the country.
Either way, the decisions made in the coming months will determine how accessible sweepstakes play remains for California players.
With the addition of Arizona and California to its list, Carnival Citi is now restricted in the following twenty states:
