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Read Full BioSweepstakes casino operator Carnival Citi has added California and Arizona to its list of excluded states following pushback against the platforms.
Lawmakers approved a bill banning sweepstakes casinos in California last week. Gov. Gavin Newsom still needs to add his signature to make the legislation into law, but many operators have already exited the state.
Rather than passing legislation to ban platforms, Arizona’s gaming regulator has been active in sending cease-and-desist letters to companies. Carnival Citi has not been sent the order, but is preempting any action by exiting both states.
In the company’s terms, Carnival Citi now lists 19 states where access is restricted, adding California and Arizona to other states that have banned sweepstakes casinos.
States Pushing Out Carnival Citi & Other Operators
So far this year, Montana, New York, Nevada, New Jersey, and Connecticut have all passed legislation prohibiting the dual-currency models employed by companies such as Carnival Citi.
Lawmakers in Louisiana also passed a bill that would have banned the platforms. Even though Gov. Jeff Landry vetoed the legislation, the state has been clamping down on operators that it says are running illegal gambling enterprises.
The website also restricts users in Florida, where its headquarters are based. The other states excluded include Delaware, Georgia, Idaho, Kentucky, Maryland, Michigan, Mississippi, Pennsylvania, Rhode Island, Washington, and West Virginia.
All seven states that have legalized online casinos are part of the excluded states. Like Arizona, Alabama has also been excluded by filing lawsuits against companies that it alleges are violating state gambling laws. Carnival Citi is not subject to any action as yet and remains active in the state.
Users Restricted to Sweeps Chips in Five Other States
Additionally, in the site’s terms, it notes, “If you live in Hawaii, North Dakota, Ohio, Tennessee or Vermont, you are eligible to participate in the Promotions or to receive or use Sweeps Chips, but you may not play the Games using Coins.”
Users can purchase Coins, play casino games, and then convert the Coins back into real money. Sweeps Chips are given for free by Carnival Citi when certain conditions are met. The terms state that, “Sweeps Chips cannot be purchased and hold no real-world or cash value.”
Sweepstakes Advocacy Groups Join Forces
As more and more states criminalize the sweepstakes casino model, two prominent advocacy groups have joined forces. The Social Gaming Leadership Alliance (SGLA) will incorporate the Social and Promotional Gaming Association (SPGA) into its group.
The SPGA was formed in September of last year, before the SGLA was launched in May of this year. Carnival Citi is not listed as a member of either organization.
However, other major operators, including High 5, VGW, and ARB Interactive, are part of the groups. The merged groups’ first action is to lobby Gov. Newsom to veto the bill banning sweeps in California.
Jeff Duncan, the SGLA’s executive director, said in a statement, “We implore Governor Newsom to veto this bill and instead open the door for online social games to support economically disadvantaged tribal nations and the state’s economy while positioning California as a leader in next-generation gaming technology.”
If Newsom were to veto the legislation, it may lead to companies such as Carnival Citi relaunching in the state. The SGLA has been working with tribal groups to drum up opposition to the bill.
