In a mildly surprising move, several well-known sweepstakes casino operators are shutting down their platforms in Iowa, despite no laws being passed in that state to outlaw dual-currency sweeps gaming.
The only sweeps-related bill that passed in Iowa in the 2026 legislative session was Senate File 2289, which gives the Iowa Racing and Gaming Commission official clearance to send cease-and-desist orders to sweepstakes casinos operating in Iowa. However, that bill doesn’t take effect until July 1. And the sweeps industry isn’t exactly known to be eager to respond rapidly to cease-and-desists, making this recent movement out of the state notable.
It’s not uncommon to see operators leave a state before a new law takes effect out of an abundance of caution.
But that has always been when the law outlaws sweepstakes casinos.
Which operators are already leaving Iowa?
High 5 Casino, Baba Casino, and Lucky Bunny Casino are all either already out of Iowa or are in the process of packing things up.
The latest update to High 5 Casino’s terms and conditions has the following at the top:
Special Notice to Players Located in the States of Indiana and Iowa: High 5 Casino regrets to announce that as of June 16, 2026, it will no longer be offering its sweepstakes gaming platform to participants located in these states.
As of June 16, 2026, participants located in these states will no longer be able to register new accounts for High 5 Casino, and existing players will no longer be able to make purchases on the platform.
Players with existing accounts will be able to continue to play and redeem Sweeps Coins until June 30, 2026.
On and after June 30, 2026, all participants (whether a resident or a non-resident located in these states) will not be able to access High 5 Casino while located in these states.
Interestingly, High 5 is treating its departures from Indiana and Iowa as a tandem unit. Again, there has been no law passed to ban sweepstakes casino gaming in Iowa. In Indiana, however, House Bill 1052 was passed earlier this year. It makes offering dual-currency or multiple-currency sweeps gaming a civil crime, effective July 1.
And here’s what’s currently plastered at the top of Baba Casino’s terms and conditions:
Special Notice to Persons Located in Iowa and Residents of Iowa: Baba Casino regrets to announce that it will no longer be offering its platform services to persons located in Iowa and residents of Iowa.
As of June 7, 2026, users in Iowa or residents of Iowa will no longer be able to register new accounts for Baba Casino and will no longer be able to purchase any further Gold Coins packages in Baba Casino.
Players with existing player accounts in Iowa or who are residents of Iowa will be able to continue to play and redeem Sweeps Coins until June 21, 2026.
Access to player accounts from the state of Iowa or for residents of Iowa will be unavailable after June 28, 2026, and player accounts belonging to residents of Iowa will be closed.
Meanwhile, Iowa was added to Lucky Bunny’s list of excluded markets in its latest terms update.
Potential motivation for these departures
These are full platform departures for High 5, Baba Casino, and Lucky Bunny. Not even Gold Coin gameplay will be left in Iowa, despite that gameplay (which amounts to the same as what any social casino offers) has never been ruled illegal in this two-year wave of scrutiny on the sweepstakes casino industry.
So Baba Casino will be fully closed off to players in Iowa after June 28, and the same can be said for High 5 on June 30. As of today, Iowa players on High 5 can still play games and redeem Sweeps Coins. They cannot, however, on Baba Casino.
The timing raises some questions.
Are these companies simply reading the regulatory landscape and deciding it’s safer to exit Iowa before regulators take any formal action? Or has the state already begun contacting operators behind the scenes, prompting a wave of quick departures?
If cease-and-desist letters have already been issued, operators appear to be responding unusually fast. If they haven’t, then these exits suggest a level of caution that isn’t typically seen by the sweepstakes casino industry.
Either way, the sequence of events feels unusual.
What Iowa’s sweeps bill actually does
SF2289 gives Iowa regulators enforcement tools they currently do not possess.
Before July 1, the IRGC has no direct authority over gambling operators that are not licensed by the state. When the bill was introduced in January, IRGC Administrator Tina Eck explained to the Iowa Capital Dispatch that the commission’s ability to respond to unlicensed operators was largely limited to educating consumers and warning Iowans about websites it views as unsafe or operating outside the law.
Eck said the commission most frequently runs into issues with unauthorized operators such as offshore sportsbooks like Bovada or MyBookie, cryptocurrency-based gaming platforms, and fraudulent websites impersonating legitimate casinos. While she did not specifically single out traditional sweepstakes casinos, the language included in SF2289 clearly encompasses them.
“We have a strong regulatory system that ensures the games are fair,” Eick told the Iowa Capital Dispatch. “We hold those [regulated] operators accountable. Their information and their funds are secure, and then they have responsible gaming, self exclusion programs in place, and then we tax them. They pay their fair share of taxes to Iowa.
“The bottom line is, illegal gaming undermines the public trust and puts Iowans at risk.”
Other recent operator exits
We’re seeing some other recent operator exits, as well.
In addition to leaving Iowa, Lucky Bunny has also pulled out of Indiana and Maine. (Maine’s sweeps gaming ban, Legislative Document 2007, goes into effect in the middle of July.)
Cider Casino has also exited Indiana. Same with Lavish Luck.
Funzpoints, one of the most recognizable sweeps gaming platforms in the industry, recently added Indiana and Maine to its list of excluded markets.
