Other Operators Doing Something Similar
Another sweepstakes casino that did something similar was Baba Casino. After AB 831 passed in September, Baba Casino reopened in Georgia, Tennessee, Iowa, Ohio, Kentucky, and Arkansas.
Just before that, Spree Casino reopened in Georgia and Alabama.
There are likely other sweepstakes casinos that have done similar or will in the future, too.
Why They Chose TN, AL, GA, MD
Here are some reasons why, of all states, ACE may have decided on these four:
- Alabama: A large number of lawsuits were filed in the state, but they were all class-action suits. Due to the sweepstakes casino's terms of service, these lawsuits typically don’t go very far. Thus, ACE may have decided to reopen after assessing the risk/reward.
- Georgia: A lawsuit was filed against Virtual Gaming Worlds in May 2024, but it was later dismissed. Again, the result of this lawsuit may have made ACE feel comfortable enough to open up shop there again.
- Tennessee: The Tennessee Sports Wagering Council, the body that oversees gambling in the state, has issued cease-and-desist notices in the past and fined offshore sportsbooks. There’s also a lawsuit against VGW there, too, but again, it’s a class-action suit. Given the SWC’s stance on offshore platforms and sweepstakes casinos, this one is a bit peculiar, but perhaps it's a matter of reopening, and if they receive a cease-and-desist, they’ll depart.
- Maryland: While Maryland has issued numerous cease-and-desist notices, ACE’s parent company, Full Stop Limited, has never received one. While VGW, for example, received a notice, they don’t list Maryland as an excluded or restricted state, so perhaps ACE is simply following suit.
Will These States Make Up For California?
According to a study by Eilers & Krejcik Gaming, California accounts for 17.3% of sweepstakes casino revenue.
With close to 20% of that revenue being gone, no, these four states won’t completely negate it, but it’ll help lessen the blow.
We’ll see if other sweepstakes casinos make similar moves to ACE, Baba, and Spree, with California shutting down soon.