Sweeps Casino Exits After Law Change

After California is in process of banning sweepstakes casinos in the state, Carnival Citi casino has decided to pull out of the state in the past hours.

At this moment in time, they are waiting for Gov.Gavin Newsom to sign the bill that officially bans sweepstakes casinos for good in California state.

Carnival Citi Responds to AB 831 by Exiting California

Carnival Citi recently expanded its list of restricted states, now restricting players from both California and Arizona. While the Arizona Department of Gaming has been actively providing cease-and-desist notices to multiple sweepstakes platforms, Carnival Citi, operated by Citi Media Tech, LLC, has not been among those targeted so far.

On September 12, the California Assembly unanimously approved Assembly Bill 831, leaving just one final step before it becomes law. AB 831 would prohibit online sweepstakes casinos in California and criminalize any group or individual that intentionally and deliberately supports the industry.

Carnival Citi Becomes Second Sweepstakes Casino to Leave California

Carnival Citi has become the second sweepstakes casino known to exit California, and the first departure that appears to be a direct response to the passage of AB 831.

Earlier this month, High 5 Casino also withdrew from the state. In contrast to Carnival Citi, however, High 5 is currently involved in an ongoing lawsuit in California. What makes this case stand out among the many legal battles facing sweepstakes operators is that a judge rejected High 5’s request for arbitration.

Arbitration often serves as a protective shield for sweepstakes casinos in such cases, so the denial is significant, and may have been a strong factor in High 5’s decision to leave the California landscape.

References

• California Gambling Control Commission