Heading into 2026, many opponents of sweepstakes casinos framed the year as a turning point that would dramatically shrink the industry’s footprint. And while the sector certainly faced setbacks, the results fell well short of the sweeping collapse some had predicted.
The map did get smaller. Indiana, Maine, Louisiana, Oklahoma, and Tennessee are now off-limits for Sweeps Coin gameplay.
But those losses weren’t on the scale of the 2025 losses …
California. New York. New Jersey. Nothing compares to those markets disappearing.
Overall, what emerged in 2026 was a far more mixed picture.
Bills became more sophisticated, with some states — Maine in particular — targeting the mechanics of dual-currency models in pinpoint detail. However, sweeps casinos continue to operate in the majority of the United States, and the number of brands is at an all-time high.
Just as several states passed sweeps bans, others failed to do so. Such victories for the sweeps industry took place in Maryland, Massachusetts, Minnesota, Virginia, and Mississippi, where 2026 legislation didn’t make it to the finish line.
So it was an even 5-and-5 for the pro-sweeps and anti-sweeps coalitions.
Five wins. Five Losses.
(Well, actually, Iowa also passed a bill allowing the state regulator to send cease-and-desists to sweeps casinos, too. So, let’s give the anti-sweeps side 5.5 wins.)
Here’s a quick look at all 11 bills that reached a decision in the 2026 legislative session.
Anti-sweeps victories
Indiana
The first sweeps ban bill to pass in 2026, Indiana’s House Bill 1052 was actually softened during its committee stages. Criminal penalties were replaced with civil fines, including a $100,000 penalty for operators offering Sweeps Coin games in the state. The law targets dual- and multi-currency gaming models tied to cash prizes in casino-style games. Debate was robust, with several legislators favoring regulation and licensing over a ban, though those amendments failed to gain final approval.
HB1052 becomes effective on July 1, so plenty of operators have already left or at least ended Sweeps Coin gameplay ahead of that July deadline.
Maine
Maine’s Legislative Document 2007 had a mostly smooth path to passage. The bill takes direct aim at the mechanics of sweepstakes gaming by restricting both purchased digital currencies and free promotional currencies that can later be redeemed for cash or prizes. It also bans the common practice of bundling redeemable currency (Sweeps Coins) with purchases of non-redeemable virtual coins (Gold Coins). Violators face civil penalties of up to $100,000.
LD2007 takes effect in mid-July, so, like Indiana, Maine is also seeing operators exiting in waves.
Tennessee
Tennessee’s Senate Bill 2136 bans online gaming platforms that use virtual or dual-currency systems where players get digital currency through purchases, bonuses, or promotions and later redeem it for cash or prizes. So it effectively ends Sweeps Coin gameplay in Tennessee. The bill evolved considerably throughout the legislative process, including a version that removed the sweeps casino ban altogether and a separate amendment to study the economic impact of a regulated sweepstakes industry. Neither made it into the final law.
SB2136 became effective as soon as Gov. Bill Lee signed it in May.
Louisiana
Louisiana took perhaps the most aggressive stance against sweepstakes casinos in 2026 when Gov. Jeff Landry signed House Bill 883 and House Bill 53. HB883 defines dual-currency gaming as illegal gambling by computer, and HB53 makes gambling by computer a racketeering offense. So, yes: Offering sweepstakes casino gaming is now a racketeering crime in Louisiana. With penalties ranging from $100,000 fines to potential racketeering charges carrying prison terms of up to 50 years and $1 million in fines, the tandem bills represent one of the toughest anti-sweepstakes actions enacted to date. Both bills take effect on Aug. 1.
Oklahoma
Gov. Kevin Stitt actually vetoed Oklahoma’s Senate Bill 1589. But lawmakers overrode his veto and cleared the way for the bill to become law. It takes effect Nov. 1, giving operators several months to exit the market or remove the redeemable-currency component that legislators view as the central legal concern.
Iowa
Iowa’s Senate File 2289, signed by Gov. Kim Reynolds, authorizes the Iowa Racing and Gaming Commission to take direct action against unlicensed gambling operators, including sweepstakes casinos, through cease-and-desist orders. Previously, regulators could do little more than warn consumers about unauthorized operators.
Pro-sweeps victories
Maryland
Maryland lawmakers explored multiple paths to ban sweepstakes casinos in 2026, but none worked. Two early bills tied a sweepstakes ban to online casino legalization, and those failed. Then, later bills focused solely on classifying sweepstakes gaming as illegal online gambling. Despite some committee activity, no bill advanced far enough before key legislative deadlines. Maryland regulators have applied pressure through cease-and-desist orders, though.
Massachusetts
Massachusetts delivered a quiet victory for the sweeps industry. Lawmakers shelved House Bill 4431 by sending it to study in March, ending its chances in 2026. The bill would have legalized real-money online casinos while banning sweepstakes casinos, but it faced notable opposition, including from the state treasurer. With broader iGaming expansion struggling to gain traction, sweeps advocates will be happy to see any sweeps ban attached to iGaming legalization.
Minnesota
Minnesota’s Senate File 4474 would have banned dual-currency sweepstakes casinos and extended liability to a wide range of industry partners, including payment processors, vendors, affiliates, and geolocation providers. Despite being a late-filed bill, SF4474 advanced smoothly through multiple Senate committees and won Senate approval. However, it failed to complete the remaining House steps before the legislative session ended in mid-May, leaving sweepstakes operators active in the state for now.
Virginia
Virginia’s efforts to pair online casino legalization with a sweepstakes casino ban fell short in 2026 after lawmakers failed to reach a final agreement before adjournment in mid-March — although the bills do remain eligible in the 2027 session. A separate bill that only bans sweeps casinos is also eligible for consideration in 2027. For now, any major changes have been delayed, leaving platforms free to continue operating unless regulators pursue enforcement through other channels.
Mississippi
Mississippi’s attempt to ban sweepstakes casinos failed for a second consecutive year. Senate Bill 2104 would have imposed some of the toughest penalties proposed anywhere in 2026, classifying sweepstakes casinos as a felony punishable by significant fines, prison time, and potential asset forfeiture. The bill advanced unanimously through the Senate. However, after reaching the House Gaming Committee, the legislation stalled and never moved again.
Washington, DC bill still active
There is still one bill pending. Washington, DC Council Bill 26-0656 would legalize real-money iGaming and ban sweepstakes casinos. It had a hearing on May 4, but it hasn’t seen any activity since. The Council of the District of Columbia runs year-long.
