Baba Casino Reopens in Six States After California’s Sweeps Ban Passes

Baba Casino, a popular social casino in the US, is moving ahead with the reopening of its operations in six states, including Ohio, Georgia, Iowa, Kentucky, Tennessee, and Arkansas. The company’s decision comes shortly after California passed Assembly Bill 831 (AB 831), a law that will ban online sweepstakes casinos starting in 2026. 

While other operators and vendors have retreated or have signalled their withdrawal due to potential revenue losses, Baba Casino is boldly defying the odds. The casino’s management team has recalibrated its strategy by re-entering six states, thus cutting its restricted states from 23 to 17.

Baba Casino Back in Action in 6 States

California’s move to approve AB 831 has created a ripple effect on the sweepstakes gaming industry. Eilers &  Krejcik estimate that state-based sweepstakes casinos can generate up to $2.42 billion in purchases in 2025, around 17.3% of the total US market. So, heavy restrictions or even a complete ban on sweepstakes gaming can have an impact on the rest of the industry. And by adding the sweepstakes ban into the equation, Eilers & Krejcik now projects an industry revenue of $4 billion, slightly lower than its earlier projection of $4.7 billion. 

In a Substack post, the Eilers & Krejcik team explain that the slowdown is caused by several factors, including “operator departures from several states (most notably New York), pullbacks in marketing spend in states like California, and increasing customer acquisition costs”.

Facing the prospect of diminished revenues, Baba Casino has adjusted its strategic plan to reopen in six states previously excluded for regulatory reasons. The adjustment helps mitigate the expected revenue decline from California’s ban, which will take effect in 2026.

• Ohio: Ohio remains a viable market for Baba Casino despite an active class-action lawsuit and the presence of House Bill 298, which seeks to ban sweepstakes casinos through stricter regulations on gaming operations. Though the bill has not progressed yet in the legislature, it’s less likely to gain traction.
• Georgia: A 2024 lawsuit filed by the U.S. District Court for the Northern District of Georgia against Virtual Gaming Worlds (VGW) was dismissed due to insufficient legal grounds for jurisdiction. This legal ruling has cleared a major obstacle for sweepstakes casinos operating in Georgia, making it still a good market for Baba Casino.
• Iowa: Although Iowa’s attorney general has joined a coalition of attorneys general calling for stricter enforcement against offshore gambling, no significant legal action or change in sweepstakes casinos in Iowa. This lack of regulatory threats makes Iowa a stable market for sweepstakes casino operators like Baba Casino.
• Kentucky: Baba Casino has reopened in Kentucky since there are no significant regulatory shifts despite several lawsuits against sweepstakes casino operators in the state. Although Kentucky is proactive in banning 'grey machines, overlapping with sweepstakes casinos, there’s no indication of similar measures to be applied to Baba Casino.
• Tennessee: While a lawsuit against VGW is still ongoing, no significant legal outcomes have emerged. The state’s regulatory environment remains relatively stable, providing a favorable market for Baba Casino.
• Arkansas: House Bill 1861, a proposed bill to ban sweepstakes casinos, was withdrawn earlier in 2024. Additionally, there are no resulting legal actions in the state despite lawsuits filed against sweepstakes operators in Arkansas. Thus, Arkansas is still deemed to be a low-risk state for Baba Casino’s reopening. 

Baba Casino Promises Better Player Protection 

As the regulatory landscape evolves, Baba Casino isn’t just keen on protecting its bottom line. Baba Casino is currently working to minimize not just the financial and regulatory impact on its operations, but also the effect on players. 

When the bill takes effect in 2026, sweepstakes casino players in California will lose access to Baba Casino’s sweepstakes games. But in areas where Baba has reopened, players can expect something different yet reassuring—there will be strict KYCs, age verifications, and strict redemption procedures, which aim to promote safe and responsible gambling.

REFERENCES

• California Legislature
• PACER- Public Access to Court Electronic Records
• Ohio Legislature
• Eilers Krejcik
• Eilers Krejcik’s Substack