In recent weeks, Maine has implemented a ban on sweepstakes casinos, joining several other states that are considering similar measures as operators adapt to changing regulations.
This monthly update focuses on significant operator movements, legislative changes, and enforcement patterns that are influencing the sweepstakes casino sector.
Recent Operator Movements
Since the end of March, several operators have modified their terms and conditions. Notably, many platforms have exited Illinois, while others are returning to states that have not actively enforced regulations against them.
This trend highlights a growing contrast between states that are rigorously enforcing laws, like Illinois, and those where operators feel more comfortable reentering due to regulatory ambiguity.
Key Exits and Reentries
- Casino Click: Left California and New York
- Dara Casino: Exited Illinois on May 15
- Gold Treasure: Returned to Kentucky and Massachusetts
- Lucky Slots: Exited Illinois; Gold Coin play is no longer available in California; Reentered Tennessee, Rhode Island, and Wyoming
- Lucky Stake: Exited Mississippi and Tennessee; Reentered Alabama, Delaware, Hawaii, and Utah
- Peak Play: Exited Illinois
- Rebet: Exited California
- Sixty 6: Returned to Virginia
- Smiles Casino: Exited Illinois
- Sweeps USA: Returned to Arizona, Maryland, Massachusetts, North Carolina, Pennsylvania, Rhode Island, Tennessee, Vermont, and West Virginia
- Sweet Sweeps: Returned to Washington
- The Money Factory: Returned to Arizona
- The Win Zone: Exited Maryland and Tennessee
- Zoot: Returned to Arizona, Mississippi, Nebraska, North Dakota, Pennsylvania, Rhode Island, and West Virginia
- Zunado: Exited Illinois; Returned to Alabama, Hawaii, and Mississippi
Additionally, Mega Frenzy announced its closure on April 30, and Americana Casino may have already ceased operations.
Legislative Developments
Several states are advancing laws that either directly target the dual-currency payment systems used by sweepstakes casinos or enhance the enforcement capabilities of state regulators.
Maine has officially prohibited sweepstakes casinos after Governor Janet Mills signed LD 2007 into law, which explicitly bans “online sweepstakes games” defined as internet games utilizing a dual-currency system that offer casino-like outcomes with “direct or indirect consideration.”
Tennessee: The state legislature passed SB 2136, which bans “online sweepstakes games” using dual-currency systems. The bill is awaiting formal enrollment before being sent to the governor for approval.
Iowa: The Iowa legislature unanimously approved SF 2289, a bill that could expand the authority of regulators to pursue unlicensed gambling operators, including sweepstakes casinos. While it does not outright ban these platforms, it introduces language regarding “illegal sweepstakes” and strengthens enforcement measures.
Louisiana: Lawmakers in Louisiana are pursuing two separate bills targeting sweepstakes casinos. HB 53, which addresses unlawful gambling, has passed the legislature and is awaiting the governor’s decision. Meanwhile, HB 883 aims to tighten the state’s regulations on “gambling by computer.”