The US Sweepstakes Casino Crackdown
Millions of Americans play at sweepstakes casinos, also called social casinos, an online phenomenon that operates mostly in legal gray zones. Players don’t place bets; they buy virtual currency and win cash prizes through sweepstakes mechanics. In 2024, multiple states started leading the charge in cracking down. With search interest at an all-time high and player numbers in the millions, the sweepstakes casino crackdown is one of America’s biggest under-reported gambling stories. New laws are being introduced, enforcement is ramping up, and the message is clear: this is no longer a gray area. Our data reveals where regulation is tightening, who’s playing, and what’s next.
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✖- What Are Sweepstakes Casinos and Why Are They Under Fire?
- Sweepstakes Casinos Key Facts
- Sweepstakes Gambling Map - Where are they legal?
- Which States Banned Sweepstakes Casinos?
- Legislative Action Tiers
- States With Bills In Progress To Ban Sweepstakes Casinos
- How Many People Are Gambling With Sweepstakes Casinos?
- Most Searched Sweepstakes Casino By State
- Which Sweepstakes Casino Can I Use?
- Sweepstakes Casinos: Are They Legal In Your State?
- Fair Use
What Are Sweepstakes Casinos and Why Are They Under Fire?
Sweepstakes or social casinos look like online gambling platforms, but operate slightly differently. Players buy virtual currency, usually called “Gold Coins” and receive a free, bonus allocation of “Sweeps Coins,” which can be used to play games and be redeemed for real cash prizes.
Because the “Sweeps Coins” are marketed as a free bonus, and players can also write in by email or post to request them for free, it means they bypass laws in many states where wagering money is illegal.
These platforms aren’t just games, they’re money machines operating in regulatory blind spots. They’ve created a legal model that allows users to engage in casino-style games without directly wagering real money.
Sweepstakes Casinos Key Facts
Sweepstakes Gambling Map - Where are they legal?
We have analyzed the legal status in all states across the US and created this map to show the legal status across the country. Stripes show states where laws have been proposed that will result in changes to the legal status of sweepstakes casinos.
This map will be updated on an ongoing basis as laws pass.
Which States Banned Sweepstakes Casinos?
As of April 2025, most states have no existing laws covering sweepstakes casinos but that is changing rapidly.
Sweepstakes casinos are currently legal in 47 states.
The only states that currently have an outright ban in place on sweepstakes casinos are Washington, Idaho, and Michigan.
Legislative Action Tiers
Tier 1: Active Crackdown Stage
These are the six states that are actively cracking down on sweepstakes casinos.
| Tier 1 States |
|---|
| Connecticut |
| Delaware |
| Idaho |
| Michigan |
| Washington |
| West Virginia |
In these “crackdown” states, the authorities are either using existing laws to crack down on sweepstakes casinos, or they are currently illegal. Operators in these states are actively withdrawing services. In the case of Connecticut, they are both using existing laws to crack down on them, while also debating introducing an outright ban so we have included it here.
Tier 2: Under Legislative Review
A total of eight states are currently considering a ban in 2025, is yours next?
| Legislative Review States |
|---|
| Arkansas |
| Connecticut* |
| Florida |
| Maryland |
| Mississippi |
| Nevada |
| New Jersey |
| New York |
These states are where bills are currently being debated in state legislatures. While they are not illegal yet, that will likely change soon. In some cases, like New York, sweepstakes casino operators have already started withdrawing their services in anticipation of a ban.
Tier 3: Gray Zone
These are the states that some sweepstakes casinos do not serve.
| Gray Zone States |
|---|
| Alabama |
| Georgia |
| Kentucky |
| Louisiana |
| Montana |
| Ohio |
| Pennsylvania |
| Rhode Island |
| Tennessee |
| Wyoming |
The reasons why they avoid them vary. Some, like Pennsylvania, are excluded because regular online casinos were legalized. While some, like Alabama, have strict gambling laws that create a narrower gray area that they usually operate in, some sweepstakes casino operators avoid them to stay on the safe side.
States With Bills In Progress To Ban Sweepstakes Casinos
| State | Ongoing Bills | Stage of Bill |
|---|---|---|
| Arkansas | HB1861 | Committee |
| Connecticut | SB1235 | Passed Senate Committee |
| Florida | SB1404, HB953 | Both in committee |
| Maryland | SB860 | Passed Senate, awaiting House hearing |
| Mississippi | SB2510 | Sent to the conference committee |
| Nevada | SB256 | Proposed |
| New Jersey | AB5447 | Introduced |
| New York | SB5935, AB6745 | SB5935 on Senate floor, AB6745 in committee |
You would expect that the states that are introducing laws or taking action against sweepstakes casinos are those with tough anti-gambling laws already. The opposite is true. A number of states, in particular New Jersey and Connecticut, have both legalized online gambling, and the bill in Arkansas seeks to simultaneously legalize online gambling and ban sweepstakes casinos.
This is because sweepstakes casinos pay no gambling tax, thanks to the loophole they use to avoid being classed as “gambling”.
Below is a summary of the states currently considering a ban on sweepstakes casinos.
Arkansas
On March 19th, 2025, lawmakers in Arkansas introduced HB1861, a bill that will legalize online gambling and simultaneously ban sweepstakes casinos. The proposed law was referred to the Judiciary Committee the same day.
Connecticut
Connecticut is currently one of a small number of states where online casinos are legal. Despite legalizing online casinos, the Constitution State recently began a crackdown on sweepstakes casinos. It initiated over 1,000 criminal charges against High 5, one of the largest sweepstakes casinos in the US.
SB1235, a law explicitly banning sweepstakes casinos was introduced in the Connecticut Senate on February 5th, 2025, and since passed the committee on March 24th, 2025.
Florida
Florida has two bills currently working through the state legislature, SB1404 and HB953. The bills will simultaneously ban sweepstakes casinos in the state and reinforce the Seminole tribe’s exclusive monopoly over gambling in the state.
Maryland
The Maryland Senate passed SB860 on March 13, 2024. This will add additional definitions to gambling, meaning that the loopholes that sweepstakes casinos currently use will be closed.
Mississippi
The Mississippi Senate was the first legislative body in the US to pass a bill explicitly banning sweepstakes casinos. The bill ultimately failed due to the inclusion of sports betting in the bill. SB2510 has been sent for consideration by the conference committee.
Nevada
Nevada is famous for gambling and casinos, but many sweepstakes casinos avoid the state already due to rules prohibiting online platforms from offering anything of value for placing wagers. Despite this, some currently do operate, but they are careful to ensure that the wording is clear and that purchases are not mandatory. A bill to further tighten the rules, SB256, is currently at the committee stage. If it goes through, expect the only remaining sweepstakes casinos to leave Nevada.
New Jersey
New Jersey legalized online gambling in 2013, and is now moving to ban sweepstakes casinos. The bill AB5447 was introduced by Clinton Calabrese, and it seeks to ban sweepstakes casinos, just a month after previously introducing a bill to regulate and license them under the existing online gambling legislation.
Despite the legalization of online casinos, New Jersey still can’t tax sweepstakes.
New York
A number of sweepstakes casinos have begun withdrawing their services in New York following the passing of SB5935 by a Senate committee and sending it to the senate floor, a bill that will make them illegal. Another bill in the New York legislature, AB6745, is currently still in the committee stage.
How Many People Are Gambling With Sweepstakes Casinos?
It has been widely reported in publications such as The Washington Post and Forbes, that over 1 million people in the US use sweepstakes casinos every month. Using this information, we have estimated that over 260,000 Americans could be affected by upcoming bans every month.
| State | Estimated Sweepstakes Casino Monthly Users | Chumba Casino | Pulsz | High 5 Casino | McLuck Casino | Fortune Coins |
|---|---|---|---|---|---|---|
| Florida | 97,000 | 48,000 | 12,000 | 5,000 | 2,400 | 5,000 |
| New York | 47,000 | 11,000 | 2,300 | 1,800 | 700 | 1,000 |
| Arkansas | 38,000 | 19,000 | 7,000 | 3,100 | 1,400 | 2,500 |
| Mississippi | 30,000 | 15,000 | 3,700 | 1,600 | 1,100 | 1,600 |
| New Jersey | 23,000 | 11,000 | 2,300 | 1,800 | 700 | 1,000 |
| Nevada | 10,000 | 4,900 | 400 | 300 | 100 | 700 |
| Maryland | 9,000 | 4,500 | 1,100 | 500 | 300 | 500 |
| Connecticut | 6,000 | 3,000 | 1,100 | 600 | 300 | 300 |
Monthly user estimates were calculated using a combination of Google search volumes as reported by Semrush, Google Trends data, and the total estimated user base of over 1 million people nationwide. Figures are directional and intended to illustrate scale. Research from Eilers & Krejcik calculated that the owner of Chumba Casino, VGW, has a roughly 50% market share. Using this information, we were able to estimate the number of monthly users of a selection of sweepstakes casinos. Some of them may no longer operate in all the states following crackdowns and withdrawals of the operators.
In Florida, an estimated 97,000 people use sweepstakes casinos every month, despite the lack of regulation or consumer protection.
In Arkansas, which, according to our data, has the highest interest in sweepstakes casinos of any state, around 38,000 people use them monthly.
Most Searched Sweepstakes Casino By State
While dozens of sweepstakes casinos operate nationwide, a few stand out for their popularity. Platforms like Chumba Casino and Pulsz consistently attract the most attention and users across the US. The map below highlights the most searched sweepstakes casinos in each state, revealing how different sweepstakes casinos perform across the country.
Which Sweepstakes Casino Can I Use?
| Casino | States Not Available |
|---|---|
| Pulsz | AL, CT, ID, MI, MT, NV, TN, WA, WV |
| Chumba | CT, ID, MI, MT, NV, WA |
| WOW Vegas | ID, MI, NV, WA |
| McLuck | AL, DE, GA, ID, KY, LA, MD, MI, MT, NV, WA, WV |
| Fortune Coins | ID, MD, MI, WA |
| High5 | AL, CT, DE, GA, ID, KY, LA, MD, MI, MS, MT, NV, NJ, NY, PA, RI, WA, WV |
Although sweepstakes casinos are only banned in three states, several platforms choose not to operate in other states where they are technically legal
This is because although it isn’t banned in most states, some states have stricter laws and regulations regarding gambling. This gives sweepstakes casino operators a smaller gray area to work within, making it higher risk to operate there and risking falling foul of state gambling laws.
Other states have begun using existing anti-gambling laws to target sweepstakes operators, creating a more hostile environment in which they can operate.
Sweepstakes Casinos: Are They Legal In Your State?
Are Sweepstakes Casinos Legal in Alabama?
Sweepstakes casinos are legal in Alabama. However, due to the state’s strict anti-gambling laws and the strong anti-gambling stance from regulators in Alabama, many operators don’t accept customers from Alabama.
Are Sweepstakes Casinos Legal in Delaware?
There is currently no specific law banning sweepstakes casinos in Delaware. In 2023, the Delaware Division of Gaming Enforcement issued a cease and desist order to VGW, the operator of Chumba Casino. This led to a number of sweepstakes casinos withdrawing from the market.
Are Sweepstakes Casinos Legal in California?
Sweepstakes casinos are legal in California, as they adhere to the state’s no purchase necessary rule.
Are Sweepstakes Casinos Legal in Georgia?
While legal, some sweepstakes casinos do not operate in Georgia. In 2024, a judge dismissed a class action lawsuit against VGW, where a group of claimants claimed that VGW violated the state’s gambling laws and tried to reclaim their losses.
Are Sweepstakes Casinos Legal in Illinois?
Sweepstakes casinos are legal in Illinois, this is because they adhere to the no purchase necessary rule.
Are Sweepstakes Casinos Legal in Louisiana?
Sweepstakes casinos are legal in Louisiana, but Louisiana has stricter gambling laws than many states, which means some sweepstakes casinos do not accept customers from Louisiana. However, some do operate here and there are no laws explicitly banning them.
Are Sweepstakes Casinos Legal in Montana?
Currently yes, sweepstakes casinos are legal in Montana. However, there is a pending law that means that many sweepstakes casinos have pre-emptively pulled out of the market.
Are Sweepstakes Casinos Legal in Pennsylvania?
Online casinos have been legal in Pennsylvania since 2021. Conversely, since sweepstakes casinos are an alternative to regular online casinos, many sweepstakes casinos withdrew their services from Pennsylvania. However, some still do operate here and sweepstakes casinos are legal.
Are Sweepstakes Casinos Legal in Texas?
Sweepstakes casinos are currently legal in Texas. There have been a number of bills introduced in Texas to make online gambling legal, but all attempts so far have failed. If online gambling is legalized, expect some sweepstakes casinos to withdraw from Texas.
Are Sweepstakes Casinos Legal in West Virginia?
West Virginia legalized online casinos in 2019, as a result, some sweepstakes casinos do not operate here. Additionally, the attorney general has begun an investigation into what they call “illegal gambling operations” and has reportedly issued subpoenas in March 2025 to a number of sweepstakes casino operators. Expect to see more of them withdraw soon.
Fair Use
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