Carnival Citi Exits California Amid Regulatory Concerns

Carnival Citi is officially out of California’s sweepstakes casino industry as of September 2025. The company’s decision to withdraw operations from the state is a response to the looming ban on sweepstakes casinos. California’s legislature has unanimously passed Assembly Bill 831, and it’s now on Governor Gavin Newsom’s desk. With the October 12th deadline fast approaching, many operators are scrambling to calibrate their strategies. 

Other states are either polishing their bills to regulate the industry, while some are in the late stage of banning the operations. Louisiana has filed cases against top operators for tax liabilities, while Arizona is also exerting some pressure on these websites, indicating broader crackdowns.

Why Carnival Citi Left the California Market

Launched in 2023, offering sweepstakes-style games in 31 US states, Carnival Citi has left the California sweeps industry. The decision leaves California players without access to the sweepstakes platform, forcing them to shift to alternative regulated online casinos.

The sudden exit was driven by mounting regulatory pressures in the state. The key factors contributing to the company’s decision include: 

• AB 831. This California bill would ban sweepstakes casinos, along with penalties for violations. After receiving unanimous backing from legislators, the bill now awaits the governor’s signature.
• Increased compliance cost. Intensified regulatory action in California and other jurisdictions has increased compliance costs, forcing sweepstakes operators to reconsider their viability.
• Industry shifts. Following High 5 Casino, Carnival Citi was the second sweeps casino to pull out of California, which signals a trend of operators exiting markets where compliance costs and legal risks are rising. 

What’s Next for Players and the Industry

The industry’s future in California now lies on Newsom’s decision in October 2025, crucial in reshaping the national sweepstakes casino landscape. As the regulatory landscape tightens, both players and gaming operators should prepare for several possible changes in the industry, including: 

• Fewer sweepstakes options in California. As major industry players exit the California market, players can have limited access to online sweepstakes casinos.
• Possible migration to alternative platforms or licensed online casinos. Many sweepstakes players are likely to explore alternative casino sites or shift to regulated online casinos.
• Market consolidation. Larger operators may dominate smaller competitors, with fewer financial and legal resources. 

Carnival Citi’s Next Steps

With operations in California and Arizona now closed, Carnival Citi is shifting its focus toward more stable markets with predictable regulatory environments. The company is expected to maintain clearer legal frameworks for sweepstakes gaming, to reduce legal risks and avoid high compliance costs. 

As more states consider regulations similar to California’s AB 831, Carnival Citi is most likely to focus on long-term adaptability, balancing growth opportunities with evolving regulations. Its exit from California markets marks a setback, but could position the company for more sustainable gaming operations. 

REFERENCES:

• California Senate