A fourth jurisdiction has passed a bill banning sweepstakes casinos in 2026.
On Monday, the Oklahoma House passed Senate Bill 1589 via a 65-21 vote. Having already passed the Senate in a unanimous vote in March, SB1589 has now cleared both chambers and will head off to Gov. Kevin Stitt for his signature or veto.
Oklahoma’s 2026 legislative session ends on May 29. During session, the governor has five days (excluding Sundays) to veto a bill. If no action is taken during that time, the bill becomes law. So that deadline for SB1589 is May 9.
The markets to pass legislation banning sweeps casinos this year are Indiana, Maine, Tennessee, and now Oklahoma. Governors in Indiana and Maine have signed their bills into law already. Tennessee’s bill was officially enrolled on April 30 and hasn’t officially become law yet.
Oklahoma’s ban will take effect on Nov. 1
SB1589 effectively reserves all current and potential future online gambling activity for tribal operators acting under the Indian Gaming Regulatory Act. That means any company without a tribal partnership would be barred from running online gambling platforms.
The bill gets more targeted when it addresses how certain platforms structure their games — especially sweepstakes casinos. It expands the definition of what qualifies as “something of value” in gambling to cover dual-currency systems. These are setups where users interact with two types of currency: one that can be bought but has no redeemable value, and another that isn’t directly sold but can be redeemed for real-world rewards.
And that’s all in reference to Gold Coins and Sweeps Coins, the traditional pair of currencies employed by most sweepstakes casinos.
Under the updated language, anything used in this kind of system — particularly if it can be redeemed for cash, prizes, or even just the opportunity to win them — falls within the scope of gambling. And these sweeps operators aren’t tribal entities, so they aren’t allowed.
If the governor doesn’t veto it, SB1589 will take effect on Nov. 1, 2026.
Comparing sweeps bans passed so far in 2026
Among the states to pass bans in 2026 — Indiana, Maine, Tennessee, and now Oklahoma — each defines the setup of sweeps casinos a little differently, but they’re all trying to shut down what they view as a loophole that lets sweeps casinos operate outside gambling laws.
Maine’s Legislative Document 2007 goes the furthest in spelling things out, offering a detailed, almost technical breakdown of how dual-currency systems work, especially the idea of “indirect consideration,” where players effectively get redeemable credits (Sweeps Coins) as a byproduct of other purchases.
Oklahoma’s SB1589 takes a more direct route, zeroing in on whether these virtual currencies act as a “representative of value,” which brings them squarely under existing gambling bans.
Indiana’s House Bill 1052 and Tennessee’s Senate Bill 2136 are a bit broader in their language, but ultimately reach the same conclusion: If a system allows players to win rewards that can be redeemed for cash or cash-equivalent prizes, it likely crosses the line.
Where things start to differ is in how these states choose to enforce the rules.
Tennessee frames the issue as a matter of consumer protection, treating these platforms as deceptive business practices and empowering the Attorney General to investigate and pursue civil penalties. On the other hand, Oklahoma and Maine classify these operations as illegal gambling, which opens the door to criminal enforcement — even if, in practice, civil penalties may still be the primary tool. Indiana falls somewhere in the middle, relying on its gaming commission to regulate and penalize violations through a civil framework.
Another key difference is who can be held responsible. Oklahoma casts the widest net by far, extending potential liability beyond operators to include affiliates, platform providers, geolocation services, and even media partners that help promote or support these platforms. Other states are more narrowly focused, though Maine stands out for including promoters and imposing particularly harsh consequences (like mandatory license revocation) for companies already operating legally in the state.
The penalties themselves vary significantly, too. Indiana and Maine impose fines that can reach up to $100,000 per violation. Tennessee’s fines are lower on a per-violation basis, but because each transaction could count separately, the total exposure can escalate quickly. Oklahoma, meanwhile, relies on its existing criminal statutes, meaning operators could face not just fines but potential jail time.
Iowa also passed a bill targeting sweepstakes casinos this session. Senate File 2289 allows the Iowa Racing and Gaming Commission to issue cease-and-desist orders to sweeps casinos operating in the state. Previously, the IRGC could only take regulatory action against entities it regulated — online sportsbooks, retail sportsbooks, and retail casinos.
