A third sweepstakes casino has announced its departure from California as state lawmakers move closer to banning this industry. Ruby Sweeps ended operations in the state on September 25, joining platforms like High 5 Casino and Carnival Citi that have already exited ahead of Assembly Bill 831, a measure awaiting Gov. Gavin Newsom’s decision. The bill, which passed unanimously in the Legislature, would make operating or supporting sweepstakes casinos illegal starting on January 1, 2026.
The California exit comes after Ruby Sweeps exited Arizona earlier this month, following earlier departures from Nevada and Mississippi. These moves reflect growing regulatory pressure on sweepstakes casinos, as lawmakers and regulators in multiple states question whether the model skirts gambling laws.
By withdrawing ahead of new legislation in California, Ruby Sweeps appears to be limiting legal exposure while signaling that the tightening rules in major markets like California could make long-term operations unsustainable.
Ruby Sweeps is now excluded in the following 20 states:
This makes Ruby Sweeps the sweeps casino with the most state restrictions than other operators, reflecting how smaller sweepstakes casinos are adjusting to legal and regulatory pressures in an attempt to stay afloat. These platforms often can’t afford the cost or risk of legal scrutiny, so they choose to leave markets early rather than face potential lawsuits or enforcement actions.
With a potential sweepstakes casino ban awaiting Gov. Newsom’s decision until October 12, there is some slight hope that the bill can be vetoed. The bill has been on Gov. Newsom’s desk since September 24, so there has been a waiting period for his signature. But after looking more closely at the situation, a sweepstakes ban feels inevitable in California.
If he chooses not to act, the bill will still become law automatically. This could be a move to showcase a neutral position on the issue. A veto, on the other hand, would block the measure and give operators more time to continue business in the state, though lawmakers could attempt to override his decision.
Given that the bill passed the Legislature unanimously, an override would be a real possibility, leaving sweepstakes casinos with little long-term certainty even if a veto were issued.
California is one of the largest markets for sweepstakes casinos, accounting for a significant share of U.S. revenue. If the ban takes effect, operators will not only lose access to millions of potential players but may also face added pressure in other states considering similar action.
Larger operators with deeper resources may adapt more easily, but the ripple effect from California’s decision is likely to reshape the industry nationwide. For smaller platforms like Ruby Sweeps, the cost of navigating uncertain legal landscapes could force them to scale back further or shut down entirely.
