Dara Casino Joins Growing List of Sweeps Sites Leaving California

California’s regulatory environment for sweepstakes casinos remains increasingly stringent for operators. As AB 831 awaits Governor Gavin Newsom’s signature, some operators are already anticipating a ban by exiting the market. 

Dara Casino is the latest operator to exit the market, with October 1st as its last day of operations. The casino follows Thrillz, Carnival Citi, and Ruby Sweeps at the door, reflecting increased regulatory pressure and uncertainties brought by AB 831. AB 831, which passed the Senate and Assembly unanimously, would ban and penalize the operations of sweepstakes casinos starting January 1, 2026.

Dara Casino Updates Its T&Cs Ahead of Expected Approval of AB 831

Dara Casino officially becomes the fourth sweepstakes casino operator to leave California, effective October 1st.

In the latest update of its Terms & Conditions, dated October 1, the company reaffirms its availability in most US states, excluding those with players physically located in California, Montana, Nevada, Michigan, Louisiana, New York, and Washington. 

In addition, Dara Casino also added an important waiver agreement on mandatory arbitration and class action. Simply put, by agreeing to its latest T&Cs, players give up their rights to sue Dara Casino in court or be part of a lawsuit.

So, What Contributed to Dara Casino’s Decision to Leave California?

Like Thrillz and Ruby Sweeps, there are a few main contributing factors for Dara Casino’s abrupt exit:

• Unanimous approval of AB 831 by the California legislature. The bill aims to ban and criminalize the operations of sweepstakes casinos by January 1, 2026.
• Governor Newsom will likely sign the bill, rewriting the state’s gaming laws by 2026. Once it becomes a law, violators will be fined up to $25,000, serve a jail sentence, or both.
• Increased legal risks and enforcement actions, including inquiries and lawsuits. Addressing these lawsuits and hiring representation can be costly for small-time sweepstakes casino operators.
• A broader wave of exits, reflecting increased regulatory pressure on sweepstakes casinos in many states. In New York, a bill to regulate these platforms is awaiting the governor’s signature, and in Louisiana, two top operators are facing tax penalties.

Dara Casino’s exit from California is part of a broader industry trend caused by evolving legislation and aggressive enforcement. By pulling the plug ahead of an expected approval of AB 831, Dara and the three operators aim to avoid costly legal battles and possible shutdowns.

However, it’s a difficult decision to make for these popular sweepstakes casinos since they’re losing access to one of the most lucrative markets for iGaming.

REFERENCES:

• Dara Casino’s Terms and Conditions
• California’s Senate Committee on Public Safety