Nearly each different day, gaming boards throughout the US are debating find out how to regulate sweepstakes casinos, with rising issues concerning the lack of oversight. One of many greatest battles is unfolding in California, the place AB 831 is transferring nearer to shutting them down within the state.
On Wednesday (July 16), the California Public Security Committee voted 6-0 to approve the bill in its present kind. As we’ve reported earlier than, a number of teams from the “social gaming” area have unexpectedly teamed up with organizations just like the American Civil Liberties Union (ACLU) and others to push again.
Opponents of the bill argue it could have unintended consequences, doubtlessly hurting respectable promotional practices and slowing innovation. However, local tribal leaders imagine sweepstakes casinos may finally disappear totally in California, and probably nationwide.
So what’s occurring with sweepstakes casinos within the US? And are they really authorized?
Are sweepstakes casinos authorized within the US?
Because it stands, sweepstakes casinos are authorized in states the place on-line playing is banned for one easy cause: they don’t seem to be thought of playing websites.
At a standard on-line on line casino, you play video games by wagering actual cash. At a sweepstakes on line casino, it’s totally different. You employ digital currencies, normally Gold Cash (GC) and Sweeps Cash (SC), as an alternative of money.
One other necessary level is that no buy is required. Sweepstakes casinos are legally obligated to supply free play. Most of them do that by giving out free Gold Cash and Sweeps Cash in numerous methods.
One huge cause sweepstakes casinos have develop into so standard is that conventional on-line casinos are nonetheless banned in all however six states. Regardless that on-line sports activities betting is now authorized in additional than 30 states, it’s nonetheless off-limits in a number of the nation’s greatest markets.
Which states haven’t banned sweepstakes casinos?
Sweepstakes casinos are authorized in 48 states, however that doesn’t imply each supplier operates in all of them.
States like California, Texas, and Florida are nice examples. Regardless that conventional on-line casinos are banned there, sweepstakes platforms are allowed to run underneath native legal guidelines. That mentioned, every state nonetheless has its personal guidelines to ensure these websites adjust to playing rules and promotional requirements.
California
In California, sweepstakes casinos are capable of function legally because of the state’s basic promotion legal guidelines. So long as these platforms observe the foundations, like ensuring gamers are at the very least 18, they will provide a variety of video games to adults. Even so, platforms like Stake.us have been hit with lawsuits from individuals who argue the positioning is actually selling playing. The corporate, nonetheless, strongly denies these claims.
What surprises many individuals is that California, regardless of its progressive repute, has but to legalize conventional on-line playing. Since 2019, there have been a number of makes an attempt to deliver it to the desk, however every effort has confronted sturdy resistance, particularly from tribal casino groups frightened about dropping enterprise to on-line competitors. They’re the one teams which are legally allowed to run playing operations within the state, therefore they’ve thrown their help behind AB 831.
What every week. Sweepstakes playing will nonetheless die an unpleasant demise. That’s not up for debate. As for DFS, I see this as a chance to redefine the trade on our phrases.
— Victor Rocha (@VictorRocha1) July 4, 2025
Victor Rocha, convention chair of the Indian Gaming Affiliation, has beforehand mentioned: “After California, they’re not going to have a lot oxygen left.
“I believe Texas is coming proper behind us, particularly when it’s this egregious exploitation.”
For now, sweepstakes casinos and day by day fantasy sports activities are nonetheless totally authorized and proceed to fill the hole for Californians searching for on-line gaming choices. Nevertheless, in latest days, the state’s lawyer basic, Rob Bonta, voiced his disapproval of draft and choose’em-style day by day fantasy contests, arguing that they quantity to betting on sporting occasions.
Texas
Texas is one other main market the place sweepstakes casinos are booming, regardless that the state hasn’t legalized sports activities betting or actual cash on-line casinos. The authorized panorama right here has made it simple for these platforms to realize traction and appeal to loads of gamers.
Recognized for its conservative stance on playing, Texas has been gradual to embrace change. Whereas there’s been some motion towards increasing land-based on line casino choices, authorized on-line playing nonetheless isn’t on the horizon. For now, sweepstakes casinos stay one of many few authorized methods Texans can take pleasure in casino-style video games on-line.
Georgia
Georgia has a number of the strictest playing legal guidelines within the nation, and truthfully, it’s arduous to think about the state ever approving conventional on-line casinos or sports activities betting. As of now, the one types of playing allowed are the state lottery, bingo, and charity raffles.
That mentioned, Georgia does make room for social gaming and promotional sweepstakes. This implies sweepstakes casinos can function legally, giving gamers within the Peach State a option to take pleasure in on-line video games. In the event you’re over 18 (or 21 for sure platforms), you’ll be able to enroll and play at a social on line casino with out breaking any legal guidelines.
Florida
Florida has its personal algorithm for sweepstakes promotions, however they nonetheless go away room for platforms like Chumba, Hi there Tens of millions, and Pulsz to function. These websites keep away from the restrictions on conventional on-line casinos by utilizing the sweepstakes mannequin, which retains them inside authorized boundaries.
In Might, on-line sweepstakes casinos supporters scored one other win after two proposed bills were pulled and set aside indefinitely within the Florida legislature.
Louisiana
Sweepstakes casinos had been on the verge of being booted out of Louisiana until Governor Jeff Landry stepped in and vetoed the invoice in June.
Senate Invoice 181 sailed by way of the legislature with no resistance, passing 99-0 within the Home and 38-0 within the Senate. But it surely got here to a halt when critics argued the invoice was too broad and would sweep up extra than simply sweepstakes casinos.
In his veto letter, Landry defined that SB 181 was pointless as a result of Louisiana already has strict legal guidelines in opposition to on-line playing. He identified that the present framework makes extra laws redundant.
Even so, Louisiana doesn’t provide a lot relating to authorized on-line playing. On line casino-style video games, on-line poker, bingo, and most types of on-line betting stay banned. The one exception is sports activities wagering, which grew to become authorized in 2021. For now, anybody trying to gamble has to stay to in-person casinos, that are scattered all through the state.
Which states have banned sweepstakes casinos?
Connecticut grew to become the second state after Montana to ban sweepstakes casinos. The ban is ready to take impact on October 1, 2025. Different states the place sweepstakes casinos are at the moment unavailable for numerous causes embrace Arizona, Washington, Idaho, New York, New Jersey, Nevada, Michigan, Delaware, Maryland, Montana, Utah, and West Virginia.
Governor Ned Lamont signed Senate Invoice 1235 (SB 1235) into regulation again in June, formally placing an finish to sweepstakes casinos within the Structure State.
In response to SB 1235, “no particular person shall conduct or promote a sweepstakes or a promotional drawing” or “facilitate participation in any actual or simulated on-line on line casino gaming or sports activities wagering.” Violating the regulation may result in a $5,000 high-quality and as much as 5 years in jail.
There’s one exception to the brand new guidelines. Grocery shops can nonetheless run sweepstakes, however the prizes are restricted to reductions on retailer merchandise as an alternative of money rewards.
Because it was signed into regulation, SB 1235 has confronted pushback from teams opposing the crackdown on sweepstakes platforms.
Many sweepstakes casinos have additionally already pulled out of New York because the state steps up its crackdown efforts. The push has led a number of operators to depart the market totally.
In Might, VGW, the corporate behind standard platforms like Chumba On line casino and LuckyLand Slots, advised ReadWrite that it had knowledgeable gamers about its decision to start phasing out the platform. The corporate added that it deliberate to totally exit the New York market by the tip of August.
The developments come as Senator Joseph Addabbo Jr.’s SB 5935 invoice continues making its means by way of the New York legislature.
Why are states banning sweepstakes casinos?
Many states argue that sweepstakes casinos are actually simply one other type of playing, even when gamers will not be straight wagering money. Officers say these platforms have been flying underneath the radar and avoiding the form of regulation conventional playing faces.
In early July, Louisiana Legal professional Normal Liz Murrill declared on-line sweepstakes casinos unlawful within the state, regardless of Governor Landry saying in any other case. When requested by State Senator Rick Edmonds whether or not these platforms adjust to Louisiana’s gaming legal guidelines, Murrill answered no.
She defined that websites utilizing “Gold Cash” and “Sweepstakes Cash” are designed to imitate actual playing. By charging charges, protecting a part of the funds, and providing money prizes, they cross the road into unlawful territory underneath Louisiana regulation. She additionally identified that Louisiana doesn’t enable on-line on line casino gaming until it’s authorized by laws or a public vote.
“On-line sweepstakes casinos are unlawful, harmful, and may significantly destroy folks’s funds,” mentioned Legal professional Normal James. “I thank the NYS Gaming Fee and Senator Addabbo for partnering with my workplace on this concern to guard New Yorkers.” https://t.co/NlFxT2eW4O
— Daniel Wallach (@WALLACHLEGAL) June 6, 2025
Murrill added that these websites will not be like respectable sweepstakes run by manufacturers equivalent to Marriott, that are momentary promotions. As a substitute, sweepstakes casinos function year-round with the purpose of creating a revenue.
New York officers have voiced related issues. Legal professional Normal Letitia James warned, “On-line sweepstakes casinos are unlawful, harmful, and may significantly destroy folks’s funds.” New York State Gaming Fee Chairman Brian O’Dwyer echoed this, describing them as “unscrupulous, unsecure, and illegal.”
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