2025 was the year regulators turned against sweepstakes casinos. Six states passed explicit bans. Over 100 class action lawsuits were filed nationally. A Washington jury issued the first verdict against an online social casino, awarding nearly $25 million in damages. The legal landscape shifted faster than most players noticed, and players in more than a dozen states are now blocked from platforms they used a year ago.
Here is what changed, state by state, and what it means if you still play at social casinos.
The States That Have Banned Sweepstakes Casinos
Washington has maintained the strictest prohibition for years, long before the 2025 wave. Online gambling is a Class C felony under state law, and Washington includes no sweepstakes exemption. All major operators block Washington IP addresses at registration. Nothing changed here in 2025. It was already closed.
Michigan took an enforcement-first approach rather than passing new legislation. The Michigan Gaming Control Board issued multiple rounds of cease-and-desist letters starting in June 2025, taking the position that any platform offering online games for prizes must hold a Michigan internet gaming license. Major operators exited without waiting for the courts to weigh in.
Montana was among the first states to pass an explicit ban. Senate Bill 555, signed by Governor Greg Gianforte, took effect October 1, 2025. The law targets platforms transmitting gambling information or allowing currency-based wagering with payouts. Criminal penalties reach up to 10 years imprisonment and fines up to $50,000, the harshest in any state to date.
Connecticut followed with Senate Bill 1235, also effective October 1, 2025. Operating a sweepstakes casino is classified as a Class D felony under the law. Penalties run up to 5 years imprisonment and fines up to $5,000. The bill also expanded lawful online poker and added collegiate sports betting as part of a broader gaming package.
New Jersey enacted its ban in 2025 by expanding the definition of prize equivalents to include Sweeps Coins, bringing the dual-currency model squarely under existing gambling law. The state's Division of Gaming Enforcement had been active with cease-and-desist orders prior to the legislation passing.
New York enacted Senate Bill S5935 in June 2025, effective immediately. The law bans platforms using a dual-currency system where players can exchange currency for cash prizes while playing casino-style games. Fines range from $10,000 to $100,000 per violation. Liability extends beyond operators to investors, payment processors, and affiliates who knowingly facilitate prohibited activity.
California was the biggest market to close. Governor Newsom signed Assembly Bill 831 on October 11, 2025, effective January 1, 2026. The bill passed unanimously in the Assembly. It closed the promotional game exemption the sweepstakes model had relied on and extends criminal misdemeanor liability to anyone who knowingly supports or promotes a sweepstakes casino operation, including game suppliers and payment processors. McLuck cut off Sweeps Coin access for California players on December 29, 2025, ahead of the deadline.
States Enforcing Without New Laws
Several states achieved the same result through enforcement of existing gambling statutes, without passing any new legislation. Tennessee's Attorney General forced more than 40 platforms to exit the state by the end of 2025 using cease-and-desist orders alone. Delaware's Department of Gaming Enforcement ordered VGW, the operator behind Chumba Casino and LuckyLand Slots, to cease operations in April 2025. Illinois, Minnesota, Arizona, Maryland, and West Virginia all ran similar enforcement campaigns, producing operator exits without a single new law on the books.
The message from these states was consistent: sweepstakes casinos already fall under existing gambling prohibitions. No new legislation was considered necessary.
What's Coming in 2026
Indiana is the first confirmed 2026 ban. House Bill 1052, signed by Governor Mike Braun on March 12, 2026, takes effect July 1, 2026. Indiana's approach relies on civil rather than criminal penalties.
Maine passed House Bill LD 2007 through the state House 87-55. As of early April 2026, it awaits Governor Janet Mills' signature. If signed, it takes effect July 14, 2026. The bill classifies Sweeps Coins as indirect consideration, which would bring sweepstakes platforms under the state's existing gambling statutes without requiring a new legal category.
Louisiana is advancing the most aggressive legal theory in the country. House Bill 53 passed the House 86-11 and is now before the Senate Judiciary Committee. The bill adds sweepstakes casino operations to Louisiana's racketeering statutes. A conviction would carry penalties of up to $1 million in fines and up to 50 years imprisonment at hard labor. Prosecutors would need to prove at least two qualifying acts. This comes after Governor Jeff Landry vetoed a separate sweepstakes prohibition bill in 2025.
Maryland, Oklahoma, Minnesota, Ohio, Tennessee, and Massachusetts all have active legislation in progress as of April 2026. The pace of the 2025 wave shows no sign of slowing.
Why the Legal Model Is Under Pressure
The sweepstakes casino model was built on three structural pillars drawn from US promotional sweepstakes law, the same framework consumer brands have used for decades.
The first pillar is the Alternate Method of Entry. Every sweepstakes platform must offer a way to obtain Sweeps Coins for free, typically by mailing a written request or completing an online form. This removes "consideration" from the equation. Under US gambling law, an activity requires consideration, prize, and chance to qualify as gambling. Eliminate consideration and the remaining elements are lawful.
The second pillar is the dual-currency model itself. Gold Coins, purchased for entertainment, carry no real-world value. Sweeps Coins are distributed separately as a promotional currency. Operators argued these were legally distinct products. Players bought Gold Coins; Sweeps Coins were a bonus.
The third pillar is the promotional sweepstakes framing. With consideration removed, the prize-and-chance elements are permissible under federal law and most state promotional contest statutes.
The 2025-2026 legislative wave attacked the first pillar directly. New York, California, and Maine each redefined the Gold Coin purchase as indirect consideration for Sweeps Coins, collapsing the legal separation the model depends on. California went further, eliminating the promotional exemption entirely regardless of whether a free-entry path exists. Once the first pillar falls, the rest of the argument goes with it.
The Court Case Driving the Crackdown
The turning point came on February 11, 2025, when a Washington state jury awarded nearly $25 million against High 5 Games. It was the first jury verdict against an online social casino in US history.
The ruling validated the legal theory plaintiffs had been testing for years: that virtual casino chips constitute a "thing of value" under state gambling law, regardless of what a platform's terms of service say about redemption. The case built on a 2018 Washington precedent, Kater v. Churchill Downs, which had reached the same conclusion about Big Fish Casino's chips. High 5 Games took the case to trial rather than settle. The jury sided with the plaintiffs.
That verdict opened the door for the class action surge that followed. By late 2025, more than 100 active lawsuits had been filed nationwide against sweepstakes casino operators. Stake.us, Crown Coins, Chumba Casino, and Pulsz were among the defendants. Most operators are relying on mandatory arbitration clauses in their terms of service as the primary defense against collective action.
What This Means for Players
If you're in a banned state, the platform will block you at registration. There is no workaround that changes the legal situation for either party. Players in open states are unaffected for now.
The platforms reviewed on this site, including McLuck, RealPrize, and Crown Coins, continue operating in the states where sweepstakes casinos remain permitted. That is still roughly 33 states, but the number is shrinking, and several states with active legislation could move before the end of 2026. Check your state before registering, and check again if you haven't played in a while.
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