Sweepstakes Casino Operator Carnival Citi Exits Two More US States
Sweepstakes casino operator Carnival Citi has expanded its list of restricted states, confirming that it will no longer offer services in California and Arizona. The company, which uses a dual-currency model to allow customers to engage in online casino-style games, made the decision as both states stepped up efforts to restrict or eliminate sweepstakes platforms from their markets.
LISTEN TO THIS ARTICLE:California lawmakers approved a bill last week that explicitly bans sweepstakes casinos. The legislation awaits the signature of Gov. Gavin Newsom before becoming law, but Carnival Citi and other operators have already withdrawn from the state. The move reflects a broader trend of companies leaving jurisdictions where legal and regulatory frameworks are shifting against the business model.
Arizona has approached the issue through its state gaming regulator rather than through legislation. Regulators have issued cease-and-desist letters to certain sweepstakes operators, though Carnival Citi has not been targeted directly.
The company has nevertheless opted to leave Arizona in anticipation of potential enforcement actions. By updating its terms of service, Carnival Citi has now officially added California and Arizona to the list of jurisdictions where its platform is not available.
With the addition of these two states, Carnival Citi now restricts access in 19 states. The list also includes Montana, New York, Nevada, New Jersey, and Connecticut, all of which passed legislation this year prohibiting sweepstakes casinos.
Louisiana lawmakers also passed a bill aimed at banning sweepstakes casinos, but Gov. Jeff Landry vetoed it. Despite the veto, the state has been pursuing enforcement against operators it considers to be offering unlicensed gambling services.
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Carnival Citi, although not directly targeted, has remained cautious in the face of these developments. Other restricted states on the company's website include Florida, where its headquarters are located, as well as Delaware, Georgia, Idaho, Kentucky, Maryland, Michigan, Mississippi, Pennsylvania, Rhode Island, Washington, and West Virginia.
Notably, all seven states that have legalized real-money online casinos fall within Carnival Citi's list of excluded jurisdictions. This indicates that states with established online gaming industries are also those most aggressively pursuing enforcement against sweepstakes platforms. Alabama has also been proactive by filing lawsuits against certain companies it accuses of violating gambling laws, though Carnival Citi has not been involved in any of these cases and remains active there.
In addition to the outright exclusions, Carnival Citi places restrictions on users in Hawaii, North Dakota, Ohio, Tennessee, and Vermont. Players in these states may participate in promotional offers and receive Sweeps Chips, but are not permitted to play games using purchased Coins.
The company's terms clarify that Sweeps Chips cannot be purchased, have no intrinsic monetary value, and are only awarded under specified conditions.
The sweepstakes casino model has drawn increasing attention as regulators, lawmakers, and advocacy groups debate its place in the online gaming ecosystem. In response to mounting restrictions, two major advocacy groups in the space have combined efforts. The Social Gaming Leadership Alliance (SGLA) has incorporated the Social and Promotional Gaming Association (SPGA), strengthening industry representation at a national level.
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