The US States Banning Sweepstakes Casinos

The push to ban sweepstakes casinos in states across the US is gathering momentum.

As we enter the 2026 year, lawmakers in no fewer than 11 US states have either already enacted legislation, or plan to do so imminently, that will make sweepstakes casinos illegal. The 11 states represent round 30% of the United States adult population, putting a considerable dent in an otherwise burgeoning market.

Here’s the current state of play.

State	Ban Status	Summary (New/Proposed Law)
Montana	Enacted	SB 555 came into effect October 1 2025. It redefines internet gambling to outlaw sweepstakes casinos.
Connecticut	Enacted	SB 1235 came into effect October 1 2025. It explicitly prohibits sweepstakes casino platforms.
New Jersey	Enacted	AB 5447 came into effect August 14 2025. It bans sweepstakes casino operations statewide.
California	Enacted	AB 831 came into effect January 1 2026. It prohibits dual-currency sweepstakes models and related facilitators.
Washington	Effective	Sweepstakes casinos interpreted as illegal under existing legislation.
Idaho	Effective	Broad gambling prohibition bars sweepstakes prize redemption.
Maine	Proposed	Legislature scheduled to debate a bill to ban sweepstakes casinos during 2026.
Mississippi	Proposed	Senate Bill 2104 introduced (2026 session) to classify online sweepstakes casinos as illegal gambling.
Florida	Proposed	Lawmakers expected to pursue changes to clarify that the sweepstakes model violates existing gambling laws, though no ban has yet been passed.
Ohio	Proposed	Bill introduced to prohibit dual-currency sweepstakes gambling.
New York	Proposed	Bills introduced to ban sweepstakes casinos (S5935/A6745). The state’s Attorney General has already shut operators through enforcement actions.

The sweepstakes casino loophole

Outside a handful of US states where igaming is regulated, it’s illegal to offer online casino games to US players. Yet sweepstakes casinos have managed to offer them free from the threat prosecution for a few years now. They manage this using a two-currency system loophole.

Players buy a non-gambling product (often ‘Gold Coins‘) for entertainment only. As a bonus, they receive a second currency (often called ‘Sweeps Coins‘) that can be used to play casino-style games. If players win using the sweepstakes currency, those winnings can be redeemed for cash or prizes. Importantly, Sweeps Coins can never be purchased – only won as prizes or given as bonuses.

Under this system there is no real money consideration given for the Sweeps Coins that are used to play casino games. Because consideration is one of the 3 critical elements of the definition gambling (along with chance and win/loss opportunity), the system circumvents existing anti-gambling laws.

Before state legislatures started closing this loophole, the US sweepstakes casino market had grown to be worth an estimated $4.6 to $6.9 billion in 2025. Where it goes from here will depend on how many other states choose to enact bans.

One of the major operators in this market is Stake.us. They may have concerns about the impact of this crackdown on their earnings, but they’re not showing it, with reports of aggressive expansion plans for 2026.

Group parent Easygo recently posted a $257 million net profit for the year ended 30 June 2025. They also unveiled plans to relocate headquarters from office space in Melbourne’s CBD, to a purpose built 13,000 square metre premise in nearby Cremorne. The new headquarters will be big enough to accommodate more than twice Easygo’s current 636 staff headcount.