Which US states ban sweepstakes casinos: the 2026 list
Last reviewed · Editorial policy
A state-by-state record of the sweepstakes casino bans enacted in 2025 & 2026, the enforcement actions taken without new laws, & the bills that stalled, drawn from regulator & trade press reporting.
The short answer
A sweepstakes casino offers casino-style games using two virtual currencies: Gold Coins, which are played for fun, & sweepstakes coins, which can be exchanged for prizes or cash. Laws aimed at these “dual-currency” platforms have spread quickly since the start of 2025.
According to Gambling Insider’s May 2026 sweepstakes tracker, ten states have enacted direct bans. Five did so in 2025: California, Connecticut, Montana, New Jersey & New York. Five followed in 2026: Indiana, Maine, Tennessee, Louisiana & Oklahoma.
Status & dates, as the sources report them: California’s law took effect on 1 January 2026. New York’s ban was signed in December 2025. Connecticut, Montana & New Jersey enacted bans in 2025, though the sources used here do not give their effective dates.
For the 2026 group: Indiana’s ban begins on 1 July 2026 & Maine’s takes effect in July 2026. Tennessee’s took effect immediately when it was signed in May 2026. Louisiana’s two measures become law on 1 August 2026, & Oklahoma’s ban takes effect on 1 November 2026.
Gambling Insider adds that Idaho, Michigan & Washington have long been off-limits to sweepstakes casinos because of existing state laws & enforcement actions.
Nevada is treated differently across sources. Gambling Insider says Nevada has not enacted a direct ban but has strengthened enforcement laws against unlicensed operators, while Legal Sports Report lists Nevada among the states that formally banned sweepstakes casinos in 2025.
Counts also vary. The Lines reports that sweepstakes casinos “are now prohibited in 18 states”, a broader figure than Gambling Insider’s ten direct bans.
The 2025 wave
Montana was the first state to ban sweepstakes casinos in 2025, according to Covers. Connecticut & New Jersey then enacted their own bans.
California’s AB 831 is the most populous state’s ban. Covers reports that the state Senate amended the bill in June to make it an anti-sweepstakes measure, then passed it 36-0 on 8 September 2025. The Assembly passed it 63-0 on 12 September 2025.
Governor Gavin Newsom signed AB 831 on a Saturday in 2025, & the law took effect on 1 January 2026. Covers says it bans sweepstakes, or dual-currency, gambling & reaches the businesses that make it possible, as set out in the section on facilitators below.
Violations are a misdemeanour (a lesser criminal offence), punishable by a fine of up to $25,000, up to a year in county jail, or both. Covers reports that the bill had the support of most of California’s tribal gaming interests.
The Social Gaming Leadership Alliance (SGLA), which represents sweepstakes operators, opposed the bill. It argued the ban could cost more than $1 billion a year in economic activity & hundreds of millions of dollars in annual tax revenue.
In New York, the state Attorney General’s office says Governor Kathy Hochul signed the formal ban on sweepstakes casinos into law in December 2025.
The 2026 wave
Indiana was the first state to get a ban through in 2026, according to Legal Sports Report. Governor Mike Braun signed it in March 2026, & the ban begins on 1 July 2026.
Legal Sports Report notes that efforts to regulate & tax sweepstakes casinos in Indiana failed. Senate Public Policy Committee chairman Ron Alting said his amendment got “a tremendous amount of feedback of ‘no go,’ particularly with leadership with both chambers”.
Maine also enacted a direct ban earlier in 2026, effective in July, according to Gambling Insider.
Tennessee’s SB 2136 was signed by Governor Bill Lee in May 2026 & took effect immediately. Gambling Insider says it defines “online sweepstakes games” as internet platforms using virtual or dual-currency systems in which users obtain digital currency through purchases, bonuses or promotions & exchange it for prizes or cash equivalents.
Louisiana Governor Jeff Landry signed two bills in May 2026. HB 883 amends the state’s gambling-by-computer law to cover online & mobile games that simulate gambling & use dual currencies. HB 53 adds “gambling by electronic sweepstakes device” & other gambling crimes as predicate offences, meaning offences that can underpin a charge, under Louisiana’s racketeering law. Both become law on 1 August 2026.
Legal Sports Report adds that Louisiana’s legislature had earlier passed a sweepstakes bill that the governor vetoed. The attorney general’s office then sent cease-&-desist letters.
Oklahoma’s SB 1589 was enacted when lawmakers overrode Governor Kevin Stitt’s veto, according to The Lines. The override passed the Senate 34-10 & the House 68-19, which The Lines says just cleared the two-thirds requirement.
Under SB 1589, anyone operating or promoting a sweepstakes casino faces penalties. The offence is a Class C2 felony, a serious criminal category, with a minimum fine of $500, & operators must stop by 1 November 2026.
Enforcement without a new law
New York acted before its ban was signed. The Attorney General’s office says it sent a cease-&-desist letter, a formal demand to stop an activity, to VGW in June 2025, & VGW stopped offering virtual coin gambling in New York.
In 2026, Attorney General Letitia James secured $8 million in disgorgement, penalties & costs from VGW, which ran Chumba Casino, Global Poker & Luckyland Slots. Her office found that players obtained “sweeps coins” much as they would buy casino chips, receiving roughly one coin for every dollar spent.
In Florida, Attorney General James Uthmeier sent letters to Google, Meta, Reddit, Snap & TikTok demanding they stop advertising sweepstakes sites in the state, according to CDC Gaming. The companies were given until 23 October to comply.
CDC Gaming reports that Uthmeier’s office sued sweepstakes sites including Stake, Chumba Casino & LuckyLand in August. The state is seeking to stop them doing business in Florida & to recover money lost by customers.
Illinois regulators sent cease-&-desist letters to 65 operators, according to Gambling Insider, & a growing number have complied.
Iowa took a separate route. Governor Kim Reynolds signed SF 2289, which gives the Iowa Racing & Gaming Commission clearer authority to issue cease-&-desist orders & seek injunctions against unlicensed operators, including those offering “illegal sweepstakes”. It is not a direct dual-currency ban; parts took effect on 15 May 2026 & the rest on 1 July 2026.
Bills that stalled
Minnesota’s SF 4474 passed the Senate but failed to gain traction in the House before the session adjourned on 18 May 2026, according to Gambling Insider. It would have prohibited online sweepstakes games using dual-currency systems.
Gambling Insider lists Florida, Maryland, Massachusetts, Mississippi & Virginia as other states where ban bills failed in 2026.
In Virginia, Legal Sports Report says the ban language sat inside online casino legislation, & the legislature adjourned in March 2026 without passing it.
What a ban means for players
Bans have prompted operators to leave states or narrow what they offer. Gambling Insider’s May 2026 update records several operators exiting Illinois, Indiana & Tennessee, & others switching states to Gold Coin-only play.
For example, Gambling Insider reports that Pulsz changed Indiana to Gold Coin play only, Funzpoints added Tennessee to its Gold Coin-only states & Splash Coins exited Tennessee. Gold Treasure Casino told customers it would “temporarily” shut down.
Some laws allow Gold Coin play. The Lines says Oklahoma’s ban applies only to the sweepstakes coin side, so operators may keep offering Gold Coins, though it expects most to leave the market entirely. It adds that customers will likely have until 1 November 2026 to withdraw sweepstakes coin winnings.
On player risk, the New York Attorney General’s office says sweepstakes casinos are not subject to state audits & oversight. It adds that some New Yorkers lost tens of thousands of dollars on VGW’s platforms.
What it means for affiliates, payment firms & suppliers
California’s law reaches beyond operators. Covers reports that AB 831 prohibits any entity facilitating sweepstakes gambling, including any “financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate”.
Oklahoma’s SB 1589 covers anyone “operating or promoting” a sweepstakes casino, according to The Lines. In his veto, Governor Stitt wrote that it “extends criminal liability to businesses and service providers.”
Florida has targeted advertising channels without a ban. CDC Gaming reports the Attorney General’s demand that five large technology & social media companies stop carrying sweepstakes advertising in the state.
What to watch next
In May 2026, Gambling Insider said most states had adjourned or were near adjourning their 2026 sessions, making further bans that year unlikely. It named Ohio & Pennsylvania as states where sessions would remain open for several months.
Gambling Insider also flagged Iowa as worth watching, to see whether regulators use SF 2289 against sweepstakes casinos.
As of Gambling Insider’s May 2026 update, several dates in the 2026 laws were still ahead: Indiana’s ban begins on 1 July 2026, Maine’s takes effect in July 2026, the remaining provisions of Iowa’s SF 2289 take effect on 1 July 2026, Louisiana’s two measures become law on 1 August 2026 & Oklahoma’s ban takes effect on 1 November 2026. Gambling Insider expected more operator exits in the following month, especially from Tennessee.
Questions
Are sweepstakes casinos legal in California?
No. California’s AB 831 bans sweepstakes, or dual-currency, gambling & took effect on 1 January 2026, according to Covers. Violations are a misdemeanour punishable by a fine of up to $25,000, up to a year in county jail, or both.
What is the penalty under Oklahoma’s ban?
The Lines reports that operating or promoting a sweepstakes casino under SB 1589 is a Class C2 felony with a minimum fine of $500. Operators must stop by 1 November 2026.
Has Florida banned sweepstakes casinos?
Gambling Insider lists Florida among states where ban bills failed in 2026. Florida’s Attorney General has instead sued sweepstakes sites & demanded that Google, Meta, Reddit, Snap & TikTok stop advertising them in the state, according to CDC Gaming.
Which state was first to ban sweepstakes casinos in 2026?
Indiana, according to Legal Sports Report. Governor Mike Braun signed the ban in March 2026 & it begins on 1 July 2026.
Can operators still offer Gold Coin play where sweepstakes coins are banned?
In Oklahoma, The Lines says SB 1589 permits Gold Coin-only play. Gambling Insider reports that several operators have switched states such as Indiana, Illinois & Tennessee to Gold Coin-only play.
Sources
Sources checked 10 October 2026. Information only. 18+.
Discussion
Ask a question, add useful context or share a source. Keep it relevant & respectful.
Add a comment
Comments are reviewed before publication.