The pause in sales of new Disneyland annual passes coincides with the Anaheim theme park's settlement of a Magic Key class action lawsuit. Pausing new Magic Key sales was a business decision made by Disney before the results of the lawsuit settlement were released, according to Disneyland officials.

Disneyland transitioned from its traditional "Annual Pass" program to the Magic Key program to better manage park capacity and improve the "attendance mix" following the 2021 reopening. The primary reason for pausing or stopping sales of specific "Keys" in 2026 is to prevent the parks from becoming overcrowded with local pass holders at the expense of high-spending tourists who buy single or multi-day tickets. Disney found that pass holders, while loyal, tend to spend less per visit on food and merchandise compared to vacationers. By limiting the number of Magic Keys in circulation and utilizing a mandatory reservation system, Disneyland can ensure that those who have purchased "Keys" can actually find a date to visit, while still leaving room for "lucrative" out-of-state guests. This strategy creates a "perceived scarcity" that drives demand when sales do occasionally reopen for short windows. It also allows the resort to balance daily operations and staffing levels more predictably, avoiding the chaotic "max capacity" days that plagued the old unrestricted annual pass system.