Prediction markets are soaking up the spotlight in late 2025, but dual‑currency sweepstakes casinos are taking the harder regulatory hits.
New York Governor Kathy Hochul signed a bill banning the operators last week, while lawmakers in three more states are lining up fresh prohibition bills that could cut operators off from some of their most valuable US customers.
Hochul signed the bill outlawing sweepstakes casinos on Friday after legislators passed the bill this summer. The New York bill signing formalises regulatory action taken this summer, as many sites left after receiving cease-and-desist letters from Attorney General Letitia James.
In 2024, sweepstakes casinos generated $10 billion in sales, according to a Eilers & Krejcik study for the Social Gaming Leadership Alliance. The study estimated the New York market accounted for $762 million of those sales.
Meanwhile, legislators in Florida, Indiana and Maine proposed sweepstakes casino bans this month.
Lawmakers and regulators across the country have taken action this year to stymie the sweepstakes casino sites, which many view as unregulated gambling. Lawmakers in California, Connecticut, Montana, Nevada and New Jersey also passed similar bans.
New sweepstakes casino bills dropping ahead of 2026
In Florida, state Rep. Berny Jacques filed the 86-page House Bill 591 ahead of the 2026 legislative session last week. The bill aims to strengthen the Seminole tribe’s gambling monopoly in the state and makes “operating, conducting or promoting” internet gambling a third-degree felony. A similar sweepstakes ban did not pass in 2025.
The E&K report estimates Florida accounts for 8.5% of sweepstakes operator revenue in 2025 with more than $1 billion in sales. The Social Gaming Leadership Alliance opposes the bill.
“We strongly disagree with the categorisation that Social Plus games that utilise sweepstakes promotions have anything in common with illegal offshore gambling operations,” Jeff Duncan, SGLA executive director, said in a statement. “HB 591 laudably seeks to stop illegal gambling from taking place in the state of Florida but fails to account for how lawful promotional sweepstakes operate in Florida.”
In Maine, Senator Craig Hickman introduced LD 2007, which would outlaw sweepstakes casinos. The legislation creates penalties of up to $100,000 for operators.
Milton Champion, executive director of the Maine Gambling Control Unit, sent a consumer warning notice this summer that sweepstakes casinos were unregulated gambling.
Indiana Rep. Ethan Manning, meanwhile, introduced House Bill 1052 last week. The bill defines sweepstakes games and establishes civil and criminal penalties. It also establishes requirements for wholesale sale and distribution of tobacco products and electronic cigarettes.
Sweepstakes casinos big target in 2025
Along with the six state bans signed by governors in 2025, Louisiana Governor Jeff Landry did not sign a similar proposal passed by the state legislature. He said that instead, state regulators could already enforce existing gambling laws.
In turn, the Louisiana Gambling Control Board sent 40 cease-and-desist letters to illegal gambling operators, including sites with sweepstakes casinos.
Mississippi and Maryland lawmakers also did not pass sweepstakes bans but saw state regulators issue cease-and-desist letters to sweepstakes casinos.
Multiple other state regulators have issued cease-and-desist letters to sweepstakes operators, including:
- Arizona
- Delaware
- Michigan
- Minnesota
- Pennsylvania
- Tennessee
- West Virginia
The West Virginia attorney general also issued subpoenas to sweepstakes operators.
Sweepstakes giant VGW pulled out of Canada this year, focusing on the US amid the regulatory challenges.
“Our Canadian business is relatively small, as the vast majority of our players reside in the larger US market, where we will concentrate our management focus, resources and investment going forward,” a VGW spokesperson said at the time of the announcement.
VGW said the decision was not related to regulatory pressure in Canada.
Pat Evans
Pat covers the legislation and regulation of online gambling in North and South America, having covered the US sports betting industry extensively since 2019.
Regulators and legislators across the United States continue to outlaw or effectively shut down dual‑currency sweepstakes casinos.