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Carnival Citi is pulling its operations from California and Arizona after both states intensified their efforts to rein in sweepstakes casinos.
Lawmakers in California recently approved a bill that bans the dual-currency model used by these platforms and are waiting for the governor’s signature to turn it into law. Arizona has not passed new legislation, but its gaming regulator has been actively issuing cease-and-desist letters to similar operators. Carnival Citi has chosen to step away from both markets before facing any formal action.
Even though Carnival Citi is leaving these states, players looking for a similar kind of entertainment still have alternatives. Many sweepstakes casinos continue to welcome users from across the United States, offering social-style games that do not rely on real money. According to coverage on Esports Insider, these international options provide a chance to enjoy the fun of casino-style play without risking actual cash. They cater to players who like the excitement of gaming but prefer to avoid the legal uncertainties surrounding sweepstakes casinos in the U.S.
DISCLAIMER: Check your bet for online compliance and for regular updates on digital platforms, visit the Arizona Department of Gaming website.
But for those who prefer playing specifically at Carnival Citi, the decision to exit California and Arizona’s legal purview adds to a growing list of jurisdictions where the site can no longer operate, leaving fewer and fewer players able to visit the site. The company’s terms now show nineteen restricted states, including earlier exits from places such as Montana, New York, Nevada, New Jersey, and Connecticut. Each of those states has moved to prohibit the dual-currency systems that allow users to buy in-game coins and later convert winnings into real money. Louisiana lawmakers attempted a similar ban, and while the governor vetoed that bill, authorities there continue to monitor and challenge companies that they view as running unauthorized gambling enterprises.
Carnival Citi’s home state of Florida is also among the restricted areas, underscoring how widespread the pushback has become. Other states on the list include Delaware, Georgia, Idaho, Kentucky, Maryland, Michigan, Mississippi, Pennsylvania, Rhode Island, Washington, and West Virginia. All seven U.S. states that have legalized online casinos fall within the excluded group, showing a clear divide between regulated gambling and the sweepstakes model. Alabama, like Arizona, has taken legal action against some operators and is also a no-go for Carnival Citi, even though it has not specifically targeted the company.
In addition to these outright bans, five states, Hawaii, North Dakota, Ohio, Tennessee, and Vermont, allow only limited participation. Residents there can receive Sweeps Coins to play promotional games, but cannot use purchased coins to convert winnings into cash. This restriction reflects the complex legal status of sweepstakes casinos, which often rely on offering free credits to stay within the bounds of contest laws. Carnival Citi emphasizes that Sweeps Coins cannot be bought and hold no real-world value, a distinction that regulators in many places still view with skepticism.
The broader industry is responding to these challenges by banding together. Two advocacy groups, the Social Gaming Leadership Alliance and the Social and Promotional Gaming Association, have merged in an effort to lobby against bans, such as the one advancing in California. They hope to persuade California’s Governor Gavin Newsom to veto the pending bill, arguing that social gaming can support tribal nations and generate economic benefits if properly managed. While Carnival Citi is not part of these groups, the outcome of their efforts could influence whether operators like it consider reentering states that have recently shut the door.
For now, Carnival Citi’s withdrawal highlights the uncertain future of sweepstakes casinos in the United States. The patchwork of state rules, combined with growing enforcement, means that companies using dual-currency models face an uphill climb to remain accessible nationwide. Players interested in social-style gaming will need to look beyond their own borders or turn to platforms that steer clear of real-money conversions if they want to keep playing without legal complications.
