Sweepstake Laws and Bans by State

Written By Author Thumbnail Sadonna Price
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Sadonna Price Review expert and slot player
Sadonna began her career in the online gambling industry in 2005 after giving birth to her second daughter, hoping to find a way to work from home. Her love of poker introduced her to 4Flush. After writing reviews and ho...
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Edited By Author Thumbnail Cheryle Shepstone
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Cheryle Shepstone Director of Content and Operations
Cheryle has close to 20 years experience in the iGaming industry across casino, poker, and sports. She spent six years in a leadership role at Catena Media, driving SEO strategy and contributing to revenue performance. H...
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Updated: February 13, 2026
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    • Pair of Florida bills both advance: SB1580 and HB189 both advance in separate hearings in Florida. Both bills focus largely on illegal gambling machines, but both contain language that could threaten the legal status of sweepstakes casinos in the state.
    • MS bill passes unanimously: Mississippi SB2104 advances through the Senate by a unanimous 52-0 vote, and now goes to the State House.
    • Second VA bill advances: The second of two sweepstakes-banning bills (HB161) made it through the ABC/Gaming Subcommittee in Virginia.
    • Bills in progress in MS, OK, IA, and TN: Various bills that could threaten sweepstakes operations are still alive in Mississippi, Oklahoma, Iowa and Tennessee.
    • IL sends C&D letters: Illinois Attorney General Kwame Raoul issued cease-and-desist letters to more than 60 sweepstakes casinos. The letter warns that the recipients will face penalties if they don’t restrict access to Illinois players.
    • IN bill passes through House: HB 1052, which would impose penalties on sweepstakes casinos, passed through the Indiana House by an 87-11 vote. The bill now heads to the Senate.
    • VGW founder takes leave of absence: Facing criminal charges in Australia, VGW  founder and CEO Laurence Escalante will take a leave of absence from the company, per a VGW statement.
    • Louisiana lawmakers pre-file bill: Rep. Bryan Fontenot pre-files HB53, which aims to classify sweepstakes gaming as racketeering.
    • VA bill advances: Virginia HB 161, which would legalize iGaming and ban sweepstakes casinos, gets amended and makes it through the Senate General Laws and Technology Gaming Subcommittee.
    • Hawaii bill could raise questions for sweepstakes casinos: Hawaii SB3281, filed January 29, seeks to ban “fish games” in the state, but also includes language about “sweepstakes gambling machines and similar devices.”
    • VGW, SGLA testify against sweeps ban in Maryland: Representatives from the Social Gaming Leadership Alliance, as well as VGW, spoke against Maryland SB112 during a hearing before the Senate Budget and Taxation Committee.
    • MS bill moves through committee: Mississippi sweepstakes-banning bill, SB2104, was amended and approved by the Senate Judiciary, Division B Committee.
    • Iowa bill to go to hearing: A proposed bill in Iowa that aims to give the Iowa Racing and Gaming Commission the power to send cease-and-desists to illegal online gambling operators will go before the House State Government Committee on Jan. 29.
    • VA bill will go to second hearing: Virginia SB 118, which would legalize online casinos and ban sweepstakes casinos, will go to a second hearing before the Senate General Laws and Technology Gaming Subcommittee on January 28.
    • SGLA forms partnership with Paysafe: The Social Gaming Leadership Alliance announces a partnership with online payment processor Paysafe.

    Timelines of events

    • Jan. 30: A bill, House Bill 53, gets pre-filed in Louisiana. It would likely classify online sweepstakes gaming as a crime under racketeering law, which would be more effective than a simple legislative ban or cease-and-desist orders.
    • Jan. 29: Hawaii sees the introduction of Senate Bill 3281, which contains language that may be read broadly enough to ban online sweepstakes gaming.
    • Jan. 29: Maryland Senate Bill 112 receives its first hearing, featuring testimony from VGW, the Social Gaming Leadership Alliance, and a Maryland-based brick-and-mortar casino, though the committee does not hold a vote.
    • Jan. 28: A Virginia Senate subcommittee advances Senate Bill 118, a measure that would authorize real-money iGaming while also banning sweepstakes casinos, sending the bill on to its next committee.
    • Jan. 28: Mississippi’s ban bill, Senate Bill 2104, was amended and approved by the Senate Judiciary, Division B Committee. The amendments focused primarily on insulating companies such as internet providers from criminal charges if a player accesses an illegal sweeps company via that provider, for example.
    • Jan. 22: Indiana’s bill, House Bill 1052, passes through the House Public Policy Committee with an amendment that adds “multi-currency” in addition to “dual-currency” for the gaming models it bans, and it changes the penalty for sweeps operators from criminal to civil.
    • Jan. 20: Maryland’s twin sweeps ban bills have their first hearings scheduled — 1 p.m. on Jan. 28 for SB 112 and 1 p.m. on Feb. 5 for HB 295.
    • Jan. 15: Iowa lawmakers officially file a bill (Senate Study Bill 3040) that would give the Iowa Racing and Gaming Commission the power to send cease-and-desist orders to sweepstakes casinos.

    • Dec. 30, 2025: Maine will receive its first hearing before the Joint Veterans and Legal Affairs Committee on Jan. 14, one week after the state’s session begins. The bill outlines a sweeps casino ban by categorizing Sweeps Coins as “indirect consideration” and grants the Maine Gambling Control Unit authority to define dual-currency systems. Florida’s House Bill 591 (86 pages, targeting sweeps to strengthen Seminole Tribe monopoly) was assigned to the House Industries & Professional Activities Subcommittee for review when the session begins Jan. 13.
    • Dec. 30, 2025: Massachusetts House Bill 4431 received a March 16, 2026 reporting deadline from the Joint Economic Development and Emerging Technologies Committee. The bill would ban sweepstakes casinos while legalizing real-money iGaming exclusively for the state’s three existing retail casinos (Encore Boston Harbor, MGM Springfield, Plainridge Park).
    • Dec. 29, 2025: Tennessee Attorney General Jonathan Skrmetti confirmed cease-and-desist letters sent to nearly 40 sweepstakes casinos operating in the state. All operators on the list indicated their intent to comply and shut down Tennessee operations, including major brands like Chumba, McLuck, Stake.us, and Crown Coins.
    • Dec. 29, 2025: Vision NL Limited launched Card Crush, an RPG-style card game platform exclusive to California and New York. Players purchase Mystery Boxes containing collectible cards and receive Mystery Coins as promotional add-ons. Mystery Coins can be used for casino-style games (Evoplay, Ruby Play) and redeemed for cash, bypassing dual-currency ban language through a single-currency RPG card battle model.
    • Dec. 23, 2025: Modo.us announced the Jan. 1 launch of Modo Stars, a new rewards system where players earn in-game rewards through Gold Coin gameplay. Players can redeem Modo Stars for Gold Coin packages and future rewards, launching in all operating states including those where Sweeps Coins are banned.

      • October 29, 2025: Four more sweeps casinos exit California, including TheBoss Casino, Grand Vault Casino, CosmoSlots and LuckySlots.
      • October 28, 2025: Legendz Casino begins the process of exiting the California market, as yet another sweepstakes casino leaves the state.
      • October 22, 2025: ACE Casino expands into four new states, including Alabama, Georgia, Maryland, and Tennessee.
        October 21, 2025: Ohio lawmakers indicate that a pair of bills that would legalize online casinos and ban sweepstakes casinos (HB 298 and SB 197) likely won’t pass before the end of the 2025 legislative session.
      • October 21, 2025: Sweepsy learns that WOW Vegas intends to remain operational in California through the end of 2025, right up to the Jan. 1, 2026 deadline for sweeps casinos being explicitly prohibited in the Golden State.

    • August 29, 2025: California AB 831 advanced through the Senate Appropriations Committee by a unanimous 7-0 vote, and will move on to the schedule for a state Senate vote.
    • August 29, 2025: Funzpointz added Connecticut and Maryland to its list of restricted states.
    • August 28, 2025: New York State Sen. Joe Addabbo tells Sweepsy that he believes regulating sweepstakes casinos is a better approach than outright banning sweeps casinos. The statement comes as sweepstakes-banning bill S5935A awaits a signature from Gov. Kathy Hochul.
    • August 28, 2025: A third California tribe, the Sherwood Valley Band of Pomo Indians, declares opposition to AB831. The tribe also forms a partnership with sweeps casino operator B-Two Operations Limited to explore responsible digital gaming as a new revenue source.
    • August 26, 2025: The Big Lagoon Ranchera tribe asks the California Senate Appropriations Committee to “pause consideration of AB 831 to allow for meaningful tribal consultation and consideration of the bill’s impacts.”
    • August 22, 2025: VGW announces that it will pull its Chumba Casino and Global Poker sweepstakes platforms out of the Canadian market, as a strategic decision to help focus of the “larger US market.”
    • August 19, 2025: Massachusetts Rep. David K. Muradian introduces a bill (H.4431) that would legalize iGaming and also ban sweepstakes casinos in the state.
    • August 18, 2025: California AB 831 is moved to the suspense file, halting the progress of the proposed sweepstakes-banning measure for now.
    • August 18, 2025: VGW announced a social gaming partnership with the Kletsel Dehe Wintun Nation of the Cortina Rancheria, the only tribal gaming group opposing AB831 in California.
    • August 16, 2025: Thrillz exits Arizona just one day after receiving a cease-and-desist letter from the Arizona Department of Gaming.
    • August 15, 2025: Gov. Phil Murphy signed AB5447, officially banning sweepstakes casinos in New Jersey.
    • August 15, 2025: RubySweeps exits Nevada, citing “changes in the state of Nevada” as the reason for the sudden departure. The “changes” likely refer to SB256, which passed in May and aims to enforce stricter penalties on unlicensed gambling operators.
    • August 14, 2025: Jackpota ceases all marketing activities in California and increases the minimum age restriction to 21 in all states.
    • August 11, 2025: Modo.us adds a liability waiver for California players in an effort to limit legal actions from players should AB831 go into law.
    • August 7, 2025: McLuck, Hello Millions, SpinBlitz, and PlayFame (all products by B-Two Operations) re-enter Alabama and Georgia. The move marks a rare instance of a sweeps casino operator returning to markets it previously exited due to legal concerns.
    • August 7, 2025: RealPrize adds Delaware, Louisiana, and New Jersey to its list of restricted states.
    • August 1, 2025: MyPrize.us exits the New Jersey market, joining several other sweeps casino operators that have voluntarily pulled out of the state before AB 5447 (which bans sweepstakes casinos) goes into law.

    • June 30, 2025: A NJ bill advanced through both the state Assembly and state Senate within the span of a few minutes on June 30. The votes put the bill at the desk of Gov. Phil Murphy, and the bill will go into law pending Murphy’s signature.
    • June 30, 2025: ARB Interactive received court approval to purchase PCH.
    • June 24, 2025: WOW Vegas exits Louisiana with a phased-out approach.
    • June 20, 2025: California legislators introduced a bill on June 20 that aims to ban all sweepstakes casino operations, as well as any promotion of sweepstakes casinos.

    Interactive map and bill tracker

    Legend
    Available
    Bill Filed
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    Banned
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    Bills to ban the dual-currency model

    State / BillLast updateDetails of billProgress
    Florida / SB 15802/10/2026Revises the definition of unauthorized internet gamblingPassed through the Senate Regulated Industries Committee
    Indiana / HB 10522/6/2026Imposes civil violations on multi-currency gaming operatorsPassed through House, heads to Senate Public Policy Committee
    Tennessee / HB18852/6/2026Bans sweepstakes casinosAssigned to Department and Agencies Subcommittee
    Iowa / HSB5862/5/2026Grants the Iowa Racing and Gaming Commission the power to send cease-and-desists to sweeps casinosPending in the State Government Committee
    Virginia / HB 1612/5/2026Legalizes iGaming while banning sweepstakes casinosPassed through ABC/Gaming Subcommittee
    Mississippi / SB 21052/5/2026Bans Sweeps Coins playPassed through Senate, headed to House
    Oklahoma / SB 15892/3/2026Modifies the scope of certain gambling-related offenses; includes language that references dual-currencyAssigned to Senate Business and Insurance Committee
    Louisiana / HB 531/30/2026Categorizes sweepstakes casinos operations as racketeeringPre-filed Jan. 30, 2026
    Illinois2/05/2026Illinois AG sends C&D letters to more than 60 operators.Letters sent
    Maine / LD 20071/14/2026Bans Sweeps Coins playIntroduced
    Minnesota11/6/2025Minnesota AG sends letters to 14 operators, ordering them to cease all operations in the state by Dec. 1, 2025.Letters sent
    Massachusetts/ H443112/30/2025Legalizes iGaming and prohibits sweepstakes casino operationsReporting deadline of March 16, 2026
    Missouri / HB 12513/05/2025Modifies provisions relating to illegal gamblingTo House Government Efficiency Committee, no hearing scheduled to date
    Nevada / SB 25610/31/2025Amends existing laws; requiring the disgorgement of any
    profit, gain, gross receipt or other benefit related to
    certain illegal gaming activities; increasing penalties
    Went into effect on Oct. 1, 2025
    Ohio / HB 2985/20/2025Introduced, revise code to legalize and regulate internet gambling in Ohio, to levy a tax on businesses that provide internet gambling, and to prohibit online sweepstakes games; highlights dual-currencyReferred to House Finance Committee on May 21, 2025

    The casino gaming industry is rapidly expanding in the United States, with sweepstakes casinos emerging as the top alternative to traditional gambling platforms. The gaming sites operate in a gray area due to the no-purchase format with Gold Coins and Sweeps Coins.

    More than a dozen states introduced bills to ban sweepstakes casinos in 2025. New York, New Jersey, California, Connecticut, and Montana all passed such bills last year, and sweepstakes casinos are prohibited from operating in those states as of the beginning of 2026.

    Several states have also issued mass cease-and-desist orders to sweepstakes casino operators, including Illinois, Maryland, Louisiana, Pennsylvania, and Arizona.

    The industry is at a crossroads, with growing legal scrutiny and regulatory changes reshaping its future. While these platforms have gained popularity by offering an alternative to traditional online casino gaming, legislative efforts in several states show signs of potential restrictions or full bans.

    The introduction of legislation in multiple states poses an increased risk to the industry. The lack of uniform federal laws leaves regulation on a state-by-state basis, making compliance difficult for operators.

    Will more states introduce legislation against sweepstakes casinos? Will the bills pass into law or become a tool for creating new regulations to help the sweepstakes industry grow even further? For now, we are in a wait-and-see period.

    List of failed bills

    StateLast updateDetails of billProgress
    Arkansas / SB52405/05/2025Aimed to classify the operation of illegal online casinos and sports betting as feloniesPulled by author, recommended for study in the Interim by the Committee
    Florida / SB 140405/03/2025Sought to ban sweepstakes casinos.Legislature ended, bill failed in Senate
    Florida / HB 146705/03/2025Sought to ban sweepstakes casinos.Legislature ended, bill failed in Senate
    Maryland / SB 086003/03/2025Prohibition of sweepstakes gamingPassed in Senate; legislature ended, bill failed.
    Mississippi / SB 215003/31/2025Sought to criminalize online sweepstakes casinosFailed in conference committee
    Louisiana /SB 1816/12/2025Redefines gambling and increases penalties.Vetoed by Gov. Jeff Landry
    Texas / SB 51706/02/2025Sought to redefine the definition “gambling device” in the state; bill broadened the definition of “thing of value”Legislature ended, bill failed in Senate
    Illinois / SB 170505/31/2025Sought to redefine the definition of gamblingDidn’t pass before the end of the 2025 legislative session

    While a dozen states introduced bills to ban sweepstakes casinos in 2025, bills have already failed in six of those states.

    Bills in Florida, Massachusetts, Maryland, and Texas all failed to meet legislative session deadlines. These failures preserve the legal status of sweeps casinos in those states for now, at least until the next legislative sessions in each of the three states.

    The author of an Arkansas bill withdrew the bill from consideration, and sweeps casinos remain operating in Arkansas.

    Louisiana Gov. Jeff Landry vetoed a bill that sought to penalize sweeps casino operators. In spite of that veto, Louisiana gaming regulators continue an aggressive push to ban sweepstakes casino gaming in the state.

    States with bans in place

    StateLawSignedDetails
    ConnecticutSB 123506/11/2025Prohibits real or simulated casino gaming by sweepstakes operators
    IdahoExisting law
    MontanaSB 55505/12/2025Revised existing gambling laws, updated penalties to include felony.
    New Jersey A 544708/15/2025Revised existing laws to ban sweepstakes with dual-currencies.
    WashingtonExisting law
    New YorkAB 674512/5/2025Prohibit online sweepstakes gaming; highlights operators and suppliers
    CaliforniaAB8311/1/2026Bans sweepstakes casinos from operating in the state.

    Montana became the first state to pass a sweepstakes-banning bill in 2025. Gov. Greg Gianforte signed SB 555 into law on May 12, and any sweeps casinos still operating in Montana must exit the state by October 1, 2025.

    Connecticut joined as the second state to pass a sweepstakes-banning bill on June 11.

    How it worked: The free entry model

    The sweepstakes sites use a dual-currency system that includes Gold Coins (GC) and Sweeps Coins (SC). You’ll see these currencies called slightly different names at some sites, but the concept is identical across all sweepstakes casinos.

    Gold Coins are play money currency, and you can only use GC in the play money games at a sweeps casino. Sweeps Coins are a virtual currency that you can use to play in the sweepstakes games at a casino. You can redeem the SC that you win in these games for cash prizes.

    You can’t directly purchase SC at a sweeps casino. Under sweepstakes laws, players must be able to enter the sweepstakes offered at a site for free. Sweepstakes casinos fulfill this legal obligation by extending several different ways to obtain SC for free. The most popular method is writing letters to request free Sweeps Coins.

    Tax implications on winnings

    Federal gaming laws require players to pay income tax on sweepstakes wins of $5,000 or more. This could be a single win on a jackpot or bet that you redeem for $5,000 or more, or it could be your cumulative sweepstakes winnings for the year.

    In addition to federal taxes, sweepstakes gaming wins could be subject to state taxes as well. State tax could be payable depending on which state you’re playing from and possibly which state you live (if the two are different).

    When it comes to sweepstakes casino winnings, we highly recommend keeping track of your total wins and losses for the year. Consulting with a tax professional and disclosing all of that information is your best bet when it comes time to report winnings and fulfill tax obligations.