This month has seen Tennessee, Louisiana, and Oklahoma implement new bans on sweepstakes casinos, as operators continue to withdraw from various states under increasing legislative and enforcement scrutiny.
In recent weeks, Tennessee, Louisiana, and Oklahoma have introduced laws aimed at regulating sweepstakes casinos, while Iowa has passed a bill that may impact this sector. Concurrently, operators are limiting their presence in states like Illinois.
This monthly overview outlines significant operator exits, legislative changes, and enforcement trends that are influencing the sweepstakes casino environment.
Operator Exits and Reentries in May
Since the last update from Gambling Insider in April, several casinos have revised their terms and conditions, with Tennessee and Illinois being increasingly designated as restricted areas.
At the end of April, Tennessee's legislature approved a bill prohibiting dual-currency platforms, which was subsequently signed into law by Governor Bill Lee last week. Meanwhile, regulators in Illinois have issued cease-and-desist notices to 65 operators, many of whom are now complying.
Additionally, some operators have begun to withdraw from Indiana, the first state to impose a ban on sweepstakes casinos this year.
Recent Notable Exits and Reentries:
- Stake.us: Added Illinois to restricted territories
- Pulsz and Pulzs Bingo: Limited Indiana to Gold Coin play only
- WOW Vegas, Rolla, MetaWin: Restricted Illinois to Gold Coin-only states
- Punt and Chanced: Exited Illinois
- Funzpoints: Added Tennessee to Gold Coin-only states
- Smiles Casino: Exited Delaware
- Ruby Sweeps: Exited Indiana
- Dara Casino: Exited Illinois
- Sweeps USA: Exited Tennessee and Washington D.C.; reentered Kentucky
- The Boss: Exited Illinois
- Lunaland: Removed California, Connecticut, Louisiana, Montana, New Jersey, and New York from eligible jurisdictions
- Zoot: Reentered Maryland
- Lavish Luck: Added Tennessee to restricted territories
- Splash Coins: Exited Tennessee
- Onyx Odds: Exited Illinois
Moreover, Gold Treasure Casino has informed its customers of a “temporary” closure as it reassesses its future direction.
Legislative Developments in Recent Weeks
Tennessee: New Ban Implemented
As noted earlier, Tennessee has officially banned online sweepstakes casinos with Governor Lee's approval of SB 2136 last week. This law characterizes “online sweepstakes games” as internet platforms utilizing virtual or dual-currency systems, allowing users to earn digital currency through purchases, bonuses, or promotions, which can then be exchanged for prizes or cash.
This legislation took effect immediately upon the Governor's signature.
Louisiana: Two New Measures Signed
Last week, Louisiana's Governor Jeff Landry signed two bills related to sweepstakes: HB 53 and HB 883. HB 883 modifies the state's gambling-by-computer laws to include online and mobile games that mimic gambling activities and use dual-currency systems. HB 53 categorizes specific gambling offenses, such as “gambling by electronic sweepstakes device,” under Louisiana’s racketeering laws.
Both laws will come into effect on August 1.
Oklahoma: Ban Passed Following Veto Override
This month, Oklahoma lawmakers approved SB 1589 and subsequently overrode Governor Kevin Stitt’s veto, instituting a ban on “online casino games” that involve a “representative of value,” including dual-currency systems utilized by sweepstakes casinos. This law is set to take effect on November 1.
Iowa: Enforcement Bill Signed
Iowa's Governor Kim Reynolds has signed SF 2289, which expands the Iowa Racing and Gaming Commission's authority to target unlicensed gambling operators, including those involved in “illegal sweepstakes.” Unlike the bans in Tennessee, Louisiana, and Oklahoma, Iowa has not enacted a direct ban on dual-currency sweepstakes. Instead, this law provides regulators with clearer powers to issue cease-and-desist orders and pursue legal action against unlicensed operators.
The law has dual effective dates: partially on May 15, with the rest of the provisions taking effect later.