ACE Casino has resumed operations in four U.S. states—Tennessee, Alabama, Georgia, and Maryland—marking a major strategic reversal for the sweepstakes casino operator. The re-entry comes months after the platform had withdrawn from those markets, signaling a renewed push by the industry to secure alternative revenue sources ahead of California’s upcoming ban on sweepstakes-style gaming.

Expansion Amid California’s Looming Ban

California’s Assembly Bill 831, set to take effect on January 1, 2026, will prohibit sweepstakes casinos statewide, eliminating nearly 20% of the U.S. market’s total revenue. Facing one of the industry’s biggest contractions to date, operators like ACE Casino are re-evaluating their market strategies and re-entering states previously deemed too risky or unclear under local laws.

Between spring and late September, ACE quietly removed Tennessee, Alabama, Georgia, and Maryland from its excluded markets list. This shift mirrors a broader industry trend of re-expansion following a wave of withdrawals earlier in 2025. Several other operators, including Baba Casino and Spree Casino, have made similar moves, re-launching in multiple states after the passage of AB 831.

While California’s market size remains unmatched, the combined populations of the four states—roughly 29.9 million residents—offer operators a chance to recover part of the lost volume. Even so, industry analysts note that these markets are significantly smaller, with Georgia’s 11.2 million residents being the largest among them.

Each of the four states presents a unique regulatory landscape.

Alabama has been one of the most legally challenging markets due to its strict anti-gambling laws and ongoing lawsuits—more than a dozen class actions against sweepstakes operators are currently active there. Despite this, most cases are stalling due to binding arbitration clauses, prompting some operators to take the calculated risk of re-entering.

In Georgia, a 2024 lawsuit against VGW was dismissed by the U.S. District Court for the Northern District of Georgia, which found the company’s local ties insufficient to establish jurisdiction. That ruling may have encouraged other platforms, including ACE, to resume operations.

Tennessee has seen an aggressive stance from its Sports Wagering Council (SWC), which previously forced several operators, including Sportzino, Legendz Casino, and Bovada, out of the market. Yet, recent class action suits have made little headway, and no new enforcement actions have been taken against ACE Casino, allowing it to cautiously resume business.

Meanwhile, Maryland continues to issue frequent cease-and-desist orders against major sweepstakes brands such as VGW, Stake.us, and McLuck through the Maryland Lottery and Gaming Control Agency. However, ACE Casino and its parent company, Full Stop Limited, have not received any direct regulatory action. According to Deadspin, many operators see VGW’s ongoing presence in Maryland as reassurance that the state may be less inclined to pursue immediate enforcement.

Adapting to an Uncertain Market

ACE Casino’s renewed expansion underscores how fluid and fragmented the U.S. sweepstakes market remains. Without federal oversight, operators must interpret state-level laws independently, often navigating shifting boundaries between legal sweepstakes models and unlicensed gambling activity.

This approach represents a significant change in tone for the industry. After years of retreat in the face of legal ambiguity, many sweepstakes casinos now appear more confident in testing regulatory limits. ACE Casino’s re-entry follows the same pattern seen with McLuck and Hello Millions, both of which returned to Alabama and Georgia earlier this year.

Industry analysts from Eilers & Krejcik Gaming (EKG) project that the overall U.S. sweepstakes casino market will shrink from $4.6 billion in 2025 to about $3.6 billion in 2026 once California’s ban takes effect. While reopening in smaller states cannot fully replace California’s contribution, operators hope it can soften the blow and maintain player engagement nationwide.

ACE Casino’s decision to re-enter these four states may signal a broader phase of risk-taking and re-expansion across the sweepstakes sector. Many companies appear increasingly willing to operate within legal gray areas, anticipating that class actions or cease-and-desist orders will be less disruptive than once feared.

Still, the strategy is not without risk. Legal pushback remains a possibility, especially in states like Alabama and Maryland where gambling regulation is still evolving. For players, this means increased access to sweepstakes gaming but also continued uncertainty about its future stability.