Sweepstakes casinos are moving the hoop.
ACE Casino has reopened in Tennessee, Alabama, Georgia, and Maryland after leaving these states earlier this year.
This move is part of a trend where similar sweepstakes and social casinos are returning to smaller or less certain markets. They're doing this because California plans to ban sweepstakes casinos starting January 1, 2026.
Governor Gavin Newsom recently signed Assembly Bill 831 (AB 831), which prohibits sweepstakes-based social casinos from operating in California starting January 1, 2026. It's a move that was backed by California Tribes.
It also includes a crackdown on celebrities who promote social and sweepstakes casino games. The bill's wording indicates that California celebrities like Drake, Paris Hilton, and Ryan Seacrest could be held legally responsible for advertising and promoting illegal casinos.
Why ACE Casino Reopened in These States
The re-entry strategy is driven by the need to offset the loss of California, which accounts for nearly 20% of U.S. sweepstakes casino revenue.
Even though Tennessee, Alabama, Georgia, and Maryland together can’t match California’s size and money, they still have about 30 million people combined, which helps a bit, though that's around 10 million less than California has.
Here's a breakdown:
State-by-State Legal Context
- Alabama: This market has seen substantial legal action, with as many as 13 active class-action lawsuits against sweepstakes operators in 2025. Most cases are stymied by mandatory arbitration clauses, leading some operators like ACE to re-prioritize revenue over risk.
- Georgia: Like Alabama, Georgia has experienced lawsuits, most notably against VGW; however, cases have often been dismissed due to lack of jurisdiction rather than a definitive legal ban.
- Tennessee: Regulatory activity has been high, including cease-and-desist orders against some sweepstakes sportsbooks, but ongoing class-action lawsuits have so far failed to yield lasting restrictions.
- Maryland: Although Maryland regulators have issued cease-and-desist orders to other sweepstakes operators, ACE and its parent company have not received direct enforcement, and major industry players like VGW remain active in the state.
ACE Casino isn’t alone in this approach; other platforms such as McLuck, Spree, and Baba Casino have also re-entered similar markets over the last several months, reflecting a shift toward re-engagement with previously suspended markets.
Sweepstakes Casino Industry Navigates Regulatory Shifts
The reopening of ACE Casino highlights the unpredictable rules for sweepstakes casinos in the U.S. Without any national laws, these businesses decide where to operate based on how legally risky each state seems.
In states like Tennessee and Alabama, businesses believe that lawsuits or official warnings won't do much long-term damage, so they're willing to take more risks to attract customers now that they'll be losing their California market soon.
The upcoming California ban is a big deal. Experts think it will cause U.S. sweepstakes casino revenue to drop from $4.6 billion in 2025 to about $3.6 billion in 2026 because of losing access to California.
While ACE Casino's return to these four states won't make up for all the lost revenue, it shows how casinos are trying to survive as the rules change quickly.
ACE Casino is coming back to these four states as both a defensive and strategic move due to new U.S. rules, especially with the upcoming California ban. Other states might change their rules, too, as businesses adjust to losing their largest market.
