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After ghosting a few states earlier this year, sweepstakes casino platform ACE has reappeared in Tennessee, Alabama, Georgia, and Maryland, a comeback move that says one thing loud and clear: they’re not giving up the game just yet.
So why the sudden U-turn? Simple math, survival, and desperation. California, which makes up nearly 20% of the entire U.S. sweepstakes casino market, just slammed the door shut.
California’s Gambling Ban Isn’t Playing Favorites
Governor Gavin Newsom recently signed Assembly Bill 831, banning sweepstakes-based social casinos from operating in the state starting Jan. 1, 2026. The move has the support of California Tribes and a not-so-subtle warning for Hollywood’s favorite faces.
Yes, the law even calls out celebrities who promote these platforms. So if you’ve seen Drake or Ryan Seacrest showing off virtual jackpots online, they might want to lawyer up. California’s message is clear: fame doesn’t buy immunity.
What do the figures say?
Industry experts say the upcoming ban could cut U.S. sweepstakes revenue from $4.6 billion in 2025 to about $3.6 billion in 2026. That’s a billion-dollar haircut — no wonder operators are running helter-skelter.
ACE Casino’s re-entry into smaller markets isn’t random — it’s strategy. Losing California’s player base is like losing an arm and a leg, but Tennessee, Alabama, Georgia, and Maryland together offer about 30 million potential players. Not quite California’s 40 million, but enough to cushion the fall.
Of course, these states are offering different kinds of welcomes — not a red carpet, but not a hard no, either. Alabama’s courts are flooded with class actions that go nowhere because of arbitration. Georgia and Tennessee keep warning letters flying but rarely swing the hammer. Maryland regulators bark more than they bite, letting operators like VGW and now ACE hang around in legal limbo. In short, there’s space to breathe, at least for now.
Exits and reentries are now a trend
It’s not just ACE. Other sweepstakes brands like McLuck Casino recently resurfaced in Alabama and Georgia. They’ve already asked affiliate partners to stop promoting their sites like Hello Millions, PlayFame, and SpinBlitz to California players. Everyone’s trying to find their footing before California’s curtain call in 2026.
Even sweepstakes casinos like Vivaro.us, Carnival Citi, Ruby Sweeps, and Dara Casino did not even wait for the final signature; they just quit California early.
Companies that make the actual online slots, the suppliers like Evolution and Pragmatic Play, quickly yanked their games. You could not even find their titles on platforms such as Stake.us and Pulsz because the legal risk became too much to handle.
