Why This Is a State-to-State Debate
Each state across the country has its own specific gambling laws and its own state Gaming Commission that oversees compliance with the guidelines and regulations. States are pushing back, feeling that Sweepstakes Casinos offer gambling and that regulatory gaps need to be closed. Several states have bans on Sweepstakes Casinos in place or are considering regulations against them.
State-by-State Breakdown
A long list of states currently have proposed bills to ban the dual-currency system offered by Sweepstakes Casinos or outlaw them for other reasons altogether. Some states have seen Bills fail, while some have bans in place, and some have attempted or are attempting to regulate them.
States Where Sweepstakes Casinos Are Prohibited
- California: Assembly Bill 831 banned online Sweepstakes Casinos using the dual-currency model. The Bill was signed into law last October and took effect beginning January 1.
- Connecticut: Governor Ned Lamont signed Senate Bill 1235, now Public Act 25-112, last year, which prohibits the promotion or operation of Sweepstakes Casinos. The ban took effect last October.
- Delaware: Sweepstakes casinos are illegal in the state. The Delaware Division of Gaming Enforcement has previously issued cease-and-desist orders against several Sweepstakes Casinos. While certain forms of gambling are permitted, Sweepstakes Casinos are unregulated and don’t fall into that class.
- Idaho: Gambling is strictly prohibited in the state. Only certain forms, like lotteries and horse racing, are permitted. No forms of traditional casino games or sports betting are legal in the state.
- Indiana: House Bill 1052 (HB 1052) will bring new Sweepstakes Casino regulations into effect on July 1. The Bill bans the dual-currency system and the offering of casino-style games, including slots and various other table games. The caveat to HB 1052 is that the state allows peer-to-peer poker offerings.
- Michigan: While there is currently no legislation in the state, the Michigan Gaming Control Board has issued cease-and-desist letters to several operators of Sweepstakes Casinos. Unlicensed Sweepstakes Casinos are illegal in Michigan. The state has regulated gambling laws that consider them unlicensed gambling because players have the option to pay money for a chance to win prizes.
- Montana: Sweepstakes Casinos have been banned from operating within its borders. The passing of Senate Bill 555 took effect in October, making Montana the first state to fully ban Sweepstakes Casinos through the passing of a Senate Bill.
- Nevada: Sweepstakes Casinos are illegal. The recent passing of Senate Bill 256 strengthens laws against all forms of unregulated gambling. Those violating the legislation could face fines and jail time.
- New Jersey: With the signing of Assembly Bill A5447 into law in August, New Jersey officially banned Sweepstakes Casinos. The Division of Gaming Enforcement may impose civil and financial penalties on violators of the Bill, which prohibits Sweepstakes gaming.
- New York: When Senate Bill S5935 was passed in December, New York began to prohibit promoting or operating online Sweepstakes Casinos. The new law extends enforcement to violators and imposes fines on those who break the legislation.
- Washington: Sweepstakes Casinos are illegal, with no legislation pending. There is a statewide Wahington ban on online gambling, and all forms of Sweepstakes Casinos have ceased operations in Washington.
States Where Sweepstakes Casinos Have Restrictions
- Arizona: While some Sweepstakes Casinos remain accessible to state residents, the Arizona Department of Gaming has issued cease-and-desist letters to operators of unlicensed platforms offering online gambling-style activities. While there are no pending Bills, many Sweepstakes Casinos ceased operations in the state after receiving the letters.
- District of Columbia: While there is no current legislation about Sweepstakes Casinos in Washington D.C., they operate in a legal gray zone. They are neither legal nor banned, yet most operators do not allow residents to participate due to uncertain regulations.
- Florida: There is currently no pending legislation in Florida to ban Sweepstakes Casinos. House Bill 189 aimed to revise the state’s gambling restrictions but ultimately failed. The state has strict gambling laws, and Sweepstakes Casinos must comply with them.
- Hawaii: Sweepstakes Casinos are available in Hawaii, but Senate Bill 3281 aims to increase penalties for certain illegal gaming devices. Senate Bill 1507 has also been introduced to establish a Hawaii Lottery and Gaming Corporation, possibly to create state-owned Sweepstakes Casinos.
- Illinois: While Sweepstakes Casinos are still accessible, the Illinois Gaming Board has sent cease-and-desist letters to several online operators. Senate Bill 3439 has also been introduced to clarify current regulations on gambling devices.
- Iowa: House Study Bill 586 has been introduced along with Senate File 2289. Both would expand the Iowa Racing and Gaming Commission’s authority over unregulated Sweepstakes Casinos and other platforms offering games of chance. They would grant them authority to issue cease-and-desist letters against unlicensed operators.
- Kentucky: While Sweepstakes Casinos remain somewhat regulated, there are restrictions in place. Some platforms do not allow residents to participate in their online offerings. However, there is no pending legislation to ban them.
- Louisiana: Sweepstakes Casinos remain legal in the state, pending House Bill 53. The Bill aims to charge Sweepstakes Casinos under racketeering laws. In an effort to ban Sweepstakes Casinos across the state, Senate Bill 181 was unanimously passed by the legislature in 2025 but vetoed by state Governor, Jeff Landry.
- Maine: In Maine, Sweepstakes Casinos are currently unregulated, and a proposed Bill, Legislative Document 2007, aims to make it illegal to operate them. The Bill has advanced with a Maine Senate vote upcoming.
- Maryland: Sweepstakes Casinos are also unregulated, with two bills introduced. House Bill 295 and Senate Bill 112 both prohibit the dual-currency system and seek to impose fines and possible imprisonment on violators.
- Massachusetts: The state remains in a legal gray area, but a pending legislative bill, House Bill 4431, aims to regulate sweepstakes casinos. The Bill which intends to legalize online casino gaming and ban Sweepstakes Casinos, is currently under review.
- Mississippi: Senate Bill 2104, recently passed by the Mississippi Senate, awaits approval by the state’s House of Representatives. If passed, the Bill would make Sweepstakes Casinos illegal with fines for violators.
- Oklahoma: In Oklahoma, Sweepstakes Casinos remain legal, but there is active legislation towards banning them in Senate Bill 1589. This Bill specifically targets Sweepstakes Casinos and is trying to classify them as illegal gambling operations.
- Pennsylvania: Another state in a legal gray area regarding Sweepstakes Casinos. They are not part of the state’s regulated gambling market, but are not illegal either. However, the Pennsylvania Gaming Control Board has issued cease-and-desist letters to operators.
- Rhode Island: Sweepstakes Casinos remain accessible. There is currently no pending legislation that restricts them, and users must follow Sweepstakes Casinos regulations to participate.
- Tennessee: In Tennessee, Sweepstakes Casinos are illegal, and cease-and-desist letters were sent to many operators. The state has introduced two Bills, House Bill 1885 and Senate Bill 2136, which aim to ban Sweepstakes Casinos and classify them as unlawful gambling.
- Utah: Sweepstakes Casinos are accessible in Utah, but there is current legislation as the state looks to expand and enforce its gambling laws. Senate Bill 38 focuses on consumer protection and updating certain laws that could affect Sweepstakes Casinos.
- Virginia: Sweepstakes Casinos are also available in Virginia, with two pending legislative measures under review in House Bill 161 (HB 161) and Senate Bill 579 (SB 579). HB 161 aims to legalize and regulate online casino gaming. SB 579 was originally aimed at banning Sweepstakes Casinos, but the Senate Committee amended it to allow the Virginia Lottery and other regulators to examine the issues further.
- West Virginia: Sweepstakes Casinos are illegal under West Virginia’s gambling laws. Subpoenas were issued to several operators last year, and there is no pending legislation in the state.
States Where Sweepstakes Casinos are Currently Unregulated or Have Unclear Laws
Alabama, Alaska, Arkansas, Colorado, Georgia, Kansas, Minnesota, Missouri, Nebraska, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oregon, South Carolina, South Dakota, Texas, Vermont, Wisconsin, and Wyoming all have unregulated or unclear laws. Residents in these 21 states have access to Sweepstakes Casinos. While some states have previously proposed legislation to regulate or even ban Sweepstakes Casinos, there is no ongoing legislation or current cease-and-desist letters sent to prevent them from operating.
The Future of Sweepstakes Casinos in the United States
With so much legal tension building up towards Sweepstakes Casinos, it will be compelling to see how the rest of 2026 plays out. While some states have prohibited their operations, others view them as falling in a gray area of the law, subject to certain restrictions. Meanwhile, some states remain unregulated, with no clear laws in place.
What is clear, though, is that the shift towards more states banning or imposing certain restrictions against Sweepstakes Casinos has never been more apparent. It will be interesting to see whether current unregulated states join those that have already banned Sweepstakes Casinos outright or are looking to crack down on them.
