Sen. Paul Corderman did not mince words on Wednesday: Online sweepstakes casinos are “ripping off” Maryland citizens.

About a month after first introducing Senate Bill 860, Corderman presented the proposal to the Senate Budget and Taxation Committee, noting that the “essence” of the bill is about “battling the proliferation of illegal online casinos.”

According to the senator, Maryland residents “are conned” into wagering an estimated $6 billion on black-market websites each year, “including on so-called sweepstakes casinos, which claim to be a sweepstakes contest but are in fact unregulated and untaxed gaming.”

His bill, Corderman said, is critical not only to protect state residents but also Maryland’s thriving gaming industry.

Corderman: Online sweepstakes casinos create ‘unfair advantage’

In early February, Corderman proposed SB860, which would effectively ban online sweeps casinos in Maryland. The bill would prohibit any game, contest, or promotion that is available online or accessible on a mobile device and simulates casino-style gaming — such as slots, blackjack, and video poker, among other examples — while utilizing a dual-currency system that players can exchange for any prize, award, cash, or cash equivalents.

Per the bill, violators would be subject to imprisonment of up to three years and/or a fine ranging from $10,000 to $100,000.

As Corderman put it on Wednesday, these operators create “unfair competition” to Maryland’s casino industry while evading consumer protections, responsible gaming, and anti-money laundering requirements set forth in the state.

What’s more, the senator added, players have reported not getting their money back. But “most disturbing,” he said, is that “there are no prohibitions against minors playing these games, which offer cartoonish animation and dangle million-dollar jackpots.”

Casino, iGaming advocates support the bill

Howard Glaser, the global head of government affairs and legislative counsel for Light & Wonder, spoke in support of the bill, noting that while not everyone in the Maryland gaming industry will agree on everything, they are all on the same team when it comes to online sweepstakes casinos.

“There’s a debate going on about whether the state should authorize online gaming,” Glaser said. “There are different points of view, as you well know, in the casino industry. There is unanimity, however, that the black market that is exploding and infiltrating the state needs to be stamped out.

“You’ll find no opposition to this other than from those offshore entities that are today conducting illegal gaming in the state and who have been found to be illegal games in every state that has looked at it. That’s the only other voice you’re going to hear here today or ever.”

Adrienne Lodge, COO of NFC Global and director of research at Spectrum Gaming Group, highlighted the “growing risk” of illegal online gaming platforms becoming a “key avenue” for transnational organize crime. Lodge noted that criminal networks use illegal and underregulated online casinos to “disguise illicit funds from cyberscams and fraud as gambling winnings, making dirty money appear legitimate. This enables them to buy stocks, real estate, luxury goods, while evading detection.”

VGW asks not for ban, but for collaboration

Present to offer a counterpoint, Josh White spoke on behalf of VGW Group, which runs sweeps casino brands such as Chumba Casino, LuckyLand Slots, and Global Poker.

“Social gaming is not gambling,” White emphasized. “Our games are always free to play with optional purchases of in-game tokens for enhanced gameplay; very common to games like Candy Crush and Clash of Clans. Tokens have no real-world value and cannot be redeemed for money.”

After mentioning that companies such as McDonald’s and Microsoft use sweepstakes promotions for marketing purposes, White drove home his point: Do not ban online sweepstakes casinos; work with them.

“Instead of driving game players to unregulated, unscrupulous platforms that lack essential safeguards and player protections, Maryland has an opportunity to establish a modern, effective framework that safeguards players and allows the state to benefit from a well-structured regulatory model,” White said. “Moreover, this bill is overly broad and risks chilling legitimate sweepstakes promotions used by retailers and other businesses.

“A better approach is regulation and not prohibition. Maryland can create a smart and beneficial framework that ensures customer protections, age verification, anti-money laundering, anti-fraud measures, and best-in-class responsible social game policies. VGW welcomes the opportunity to work with you and to achieve all these goals.”

VGW recently increased its minimum age requirement from 18 to 21, explaining to Sweepsy that the move was because their goal is to “exceed industry standards” when it comes to responsible gaming.

“We view ourselves as an RSG leader, and take this incredibly seriously, employing a team of industry experts, to ensure our games are enjoyed in a fun, healthy way,” a VGW spokesperson told Sweepsy this week.

SPGA: ‘Hastily drafted’ bill would be ‘costly … unnecessary misstep’

Unsurprisingly, the Social and Promotional Games Association (SPGA) voiced its opposition to SB860, which the group called “hastily drafted” and “a dangerous overreach, threatening legitimate business practices across Maryland while attempting to dictate what games adults can play on their phones.”

According to the group, Maryland could realize tens of millions of dollars in potential revenue through sensible registration and taxation of social sweepstakes operators.

Corderman’s statements during Wednesday’s hearing “fundamentally misrepresent the nature of SPGA member businesses,” the SPGA said, “which operate legitimately and transparently within the United States.”

All members of the group adhere to a Code of Conduct, according to the SPGA, that includes the implementation of features such as advanced age verification technology, geolocation verification systems, and robust anti-money laundering measures, among others.

As Maryland faces a steep budget deficit, eliminating online sweepstakes gaming “would be a costly and unnecessary misstep,” according to the SPGA.

“Properly operating social sweepstakes companies already contribute to Maryland’s economy through sales tax on digital purchases, a practice that a state-imposed registration fee could further supplement,” an SPGA statement read.

“Instead of eliminating this revenue stream, lawmakers can regulate and capitalize on an industry that provides safe, legal entertainment for thousands of Maryland adults who enjoy these games.”

Just over a month after introducing a bill to legalize online casinos in New York while cracking down on online sweepstakes casinos, Sen. Joseph Addabbo Jr. has introduced another gaming-related bill that specifically goes after sweeps operators.

As written, S5935 would prohibit “operating, conducting, or promoting certain online sweepstakes games or supporting the operation, conduct, or promotion of such games.”

In addition, the bill prohibits the support of such games by financial institutions, payment processors, geolocation providers, media affiliates and gaming content suppliers.

Addabbo: Sweeps casinos ‘present unfair competition’

In his justification for S5935, Addabbo recognized that online sweepstakes casinos have become widely available in New York courtesy of the Internet and mobile devices. What’s more, he emphasized, these games have become readily available to minors.

“These products evade consumer protection, responsible gaming, and anti-money laundering requirements to which gambling in New York is otherwise subject,” the bill reads.

“These products and operations are untaxed and unregulated. They present unfair competition to the state’s legal, highly regulated and economically important casinos.”

Addabbo defined online sweepstakes games as any contest simulating a casino-style game available online “that utilizes a dual-currency system of payment” that allows players to exchange any currency for any prize, award, cash or cash equivalents.” Casino-style games include draw and instant-win games, keno, bingo and sports wagering, according to the proposal.

Compared with other states looking to crack down on sweepstakes gaming, New York boasts arguably the most dialed-in definition on the industry.

The bill, if passed, would establish “a powerful deterrent” to illegal online gaming operators from opening up shop in the Empire State.

Violators would face fines up to $100K

In addition to specifying the legality of online sweepstakes casinos in New York, the bill also creates penalties for operating or facilitating unregulated online gaming.

Anyone found in violation of this bill, if passed, will become subject to hefty fines, ranging from $10,000 to $100,000 for each violation.

Addabbo’s bill, introduced on March 4, will first go under review in his own committee: the Senate Racing, Gaming and Wagering Committee.

SPGA calls ‘deeply flawed’ proposal ‘a colossal waste’ of resources

The Social and Promotional Games Association (SPGA) released a statement after the bill emerged, noting that it “unconditionally opposes” the proposal.

“We appreciate New York lawmakers’ formal recognition that social sweepstakes are a legal form of entertainment – you don’t need to outlaw something if it is already illegal.”

But, the group added, “that’s where our appreciation ends.” The SPGA said that New York lawmakers “have no business dictating to New Yorkers” what games they are allowed to play on their mobile devices. “This deeply flawed legislation is an affront to personal freedoms, an insult to New York voters, and a colossal waste of government resources,” the SPGA said.

As written, according to the group, the bill would criminalize promotional sweepstakes that small businesses use in the Empire State, risking millions in revenue for those businesses as well as thousands of jobs. The same would go for larger companies, the SPGA said, specifically highlighting the promotion offered by Marriott that gave away packages for Taylor Swift’s Eras Tour.

“The correct approach to support innovation, consumer choice, and the economy of New York,” the SPGA said, “is sensible regulation and taxation of social sweepstakes games that millions of adults enjoy responsibly and safely.”

By working with sweepstakes operators, the group concluded, New York legislators can develop “a more sensible, balanced approach that protects the rights of consumers and not the special interests of a small handful of corporate interests.”

Addabbo follows up on initial approach to sweeps casinos

This latest proposal comes just over a month after Addabbo introduced legislation to legalize iGaming in New York, around the same time that the New York State Gaming Commission expressed “serious concern” regarding sweepstakes casino gaming.

One provision within that proposal notes that any unlicensed entity offering gaming that otherwise requires a state gaming license within three years of the bill’s effective date would essentially be banned from New York. Certainly, that clause refers to online sweepstakes operators.

Speaking on a podcast shortly after, Addabbo made it clear that he wanted to protect New Yorkers from gambling operations “that have the potential of becoming more problematic without proper legislative action, such as unregulated sweepstakes casino operators.”

Addabbo continued: “Many sweepstakes operators are located offshore, making enforcement limited or impossible, and our most vulnerable populations, youth and elderly, are most often targeted, which is why I want to act to address this existing loophole.”

That loophole refers to the dual-currency system found at sweeps casinos, which offer Gold Coins and Sweeps Coins, the latter of which can be redeemed for real money.

As the online sweepstakes gaming industry continues to change and adapt under the microscope of the collective U.S. gambling market, another major operator has decided to shut down operations in a regulated iGaming state.

Pulsz, a popular sweeps site owned by Yellow Social Interactive, has pulled out of West Virginia, according to the latest update to its terms of use released Sunday. The new terms also say “certain promotions shall be limited for you” if you live in Louisiana or Mississippi.

“Please also note that our Services are no longer accessible for the residents of the State of West Virginia,” reads a terms of use update alert customers need to read before playing.

Before Sunday, Pulsz’s restricted territories were Washington, Idaho, Michigan, Montana, Nevada, Alabama, and Tennessee.

Pulsz becomes the fifth known site to shut down sweeps operations in West Virginia over the past couple weeks. High 5 Casino and Stake.us did so as part of an exodus from states with regulated iGaming two weeks ago, and Hello Millions and McLuck left West Virginia and Maryland last week.

In regards to the Mississippi changes, a Pulsz customer support representative said:

• Starting March 3, any sweepstakes codes generated from the site cannot be mailed in.
• Starting March 31, players will not be able to enter sweepstakes promotions with any remaining Sweeps Coins. Mail-in requests will also not be accepted after this date.
• After April 15, all Sweeps Coins in Mississippi accounts will expire.

The Louisiana changes actually date back to late 2024 (the changes mirror those we just mentioned for Mississippi).

Things have moved quickly in West Virginia, Mississippi

Fresh off assuming office Jan. 13, West Virginia Attorney General JB McCuskey sent subpoenas to an unknown group of sweepstakes operators in early February, per reporting from Casino Reports.

Again, we don’t know if Pulsz, Stake.us, High 5, Hello Millions, or McLuck were among the group to receive a subpoena. The timing could certainly be coincidental. But the five sites have all left West Virginia since then. 

Mississippi, meanwhile, is the only state among those considering bills banning sweepstakes gaming sites to actually have a legislative chamber pass it. The Senate approved SB 2510 by a 44-1 vote on Feb. 11 and now sits in the House Gaming Committee.

The language in the bill specifically addressing sweeps is:

“Any online, interactive, or computerized version of any game as defined in Section 75-76-5(k) or any other game of chance or digital simulation thereof, including, but not limited to, online race books, online sports pools, and online sweepstakes casino-style games, is hereby declared to be a gambling device, and the offering for play or operating an online or interactive platform that offers for play such games within the State of Mississippi shall be deemed unlawful under the provisions of this section.”

In a statement responding to the Mississippi Senate’s decision, the Social and Promotional Games Association urged lawmakers to consider regulation over an outright ban.

“(SB 2510) unjustly targets sweepstakes and conflates a safe and legal form of entertainment with illegal operations,” the statement read. “This bill not only misrepresents the nature of sweepstakes gaming—an established and consumer-friendly model—but also sets a troubling precedent by equating these operations with illicit gambling.”

What about Louisiana?

As for Louisiana, there is no pending legislation regarding sweeps operators or any legal efforts against them from the Attorney General or any state official. So there’s no clear reason Pulsz would modify its promotions in Louisiana. 

However, it is noteworthy Louisiana appears on restricted lists for several sweepstakes gaming operators, including Hello Millions, Jackpota, McLuck, Spree, High 5, and Mega Bonanza.

Also of note: In early February, Louisiana lawmakers conducted a hearing on the potential legalization of real-money online casino gambling in the future. The Senate Judiciary B and Revenue and Fiscal Affairs Committee heard testimony from various stakeholders on both sides of the iGaming debate, including Light & Wonder global head of government affairs and legislative counsel Howard Glaser, who is a frequent and vocal opposer of sweepstakes gaming on LinkedIn.

The hearing didn’t lead to any immediate actions. This was simply the result of a bill passing earlier this year that mandated lawmakers study the online casino industry. But it’s safe to say real-money iGaming is a topic of interest in Louisiana. Beyond this recent hearing, a bill that would have legalized online casinos was also considered last winter.

As Florida lawmakers consider two bills that could effectively ban online sweepstakes casinos, the Social and Promotional Games Association (SPGA) has come forward to express its discontent with the growing number of states targeting sweeps operators.

In a statement released Monday, the SPGA noted that it remains “acutely concerned” by proposed bills filed in the Florida Senate and House.

“These bills inaccurately conflate safe and legal social sweepstakes games with ‘Internet gambling’ and ‘Internet sports wagering,'” the group said in a release.

“This legislative overreach would criminalize legitimate business activities that entertain millions of Florida adults who enjoy social gaming experiences.”

SPGA: Banning sweeps casinos deprives Florida of $7B

Rep. Walter Barnaby and Sen. Corey Simon recently pre-filed companion proposals in their respective chambers in the Sunshine State, with both HB953 and S1404 amending the state’s definition of “internet gambling” to include the action of awarding money “or other thing of value … based on chance, regardless of any application of skill.”

The bills would prohibit games that simulate “casino-style gaming, including, but not limited to, slot machines, video poker, and table games” on computers and mobile devices.

As online sweepstakes casinos offer such games and use virtual currency as opposed to real money, the rationale goes that these two bills would not only ban online casinos but also sweeps casinos.

In response, the SPGA said in a statement that these bills would deprive Florida of “tens of millions of dollars in revenue at a time when the state’s budget deficit is projected to grow to $7 billion in the next three years.”

SPGA urges Florida lawmakers to ‘engage with industry representatives’

The SPGA continued, calling the proposed bills “misguided” and saying they could result in “unintended consequences.” According to the group, major companies that use sweepstakes promotions, including Starbucks, would become “criminals” based on these Florida bills. The same goes for the thousands of smaller businesses that rely on sweepstakes and similar marketing techniques to survive, the SPGA said.

“No legislature should dictate to American adults what games they can and can’t play on their phones,” the SPGA said. “Outlawing free-to-play mobile games is a drastic measure that Florida voters should resolutely reject.”

The SPGA closed its statement with the suggestion that Florida legislators meet with representatives of the online sweepstakes industry “to better understand the legal and operational differences” between gambling and sweeps gaming. After all, the group concluded, advancing such legislation “would harm businesses operating legitimately under longstanding promotional sweepstakes laws.”

Online sweepstakes operators continue to push back

Just two weeks ago, the American Gaming Association lauded the expanding legal gambling landscape in the United States after commercial gaming revenue set a record in 2024 with $71.92 billion.

Yet during the AGA’s State of the Industry shortly after that announcement, Bill Miller, president and CEO of the gaming association, said that operators in the online sweepstakes casino industry — which he called “unregulated actors” — “appear to bypass or circumvent state gaming, from currency exchanges to digital asset platforms.”

He continued: “These entrants deploy legal acrobatics to avoid calling themselves betting or gambling, only then to offer products that most would most universally would agree are gambling, yet without the safeguards and regulatory constraints that build consumer trust.”

Miller said that sweeps casinos target “vulnerable communities” and add “nothing of lasting economic value” while undermining the legal gambling industry’s integrity as well as the community’s well-being.

To this, the SPGA responded that the AGA “trotted out many of the same tired canards about social sweepstakes that self-interested critics have peddled for months.” The SPGA emphasized that properly operated sweepstakes sites operate within “well-established legal frameworks” not seen in the offshore market.

The SPGA then urged the AGA to focus on matters of genuine relevance to the legal gambling industry rather than “wasting resources mischaracterizing an innovative category.”

Lawmakers in Florida legislature have pre-filed two gambling-related bills that would strictly ban online casino gambling and online sweepstakes casinos.

Ahead of the March 4 start of session, Rep. Walter Barnaby and Sen. Corey Simon pre-filed companion proposals in their respective chambers this week that, if passed, would prohibit what is loosely defined as “internet gambling” in the Sunshine State.

In both bills, “internet gambling” means to “play or engage in any game in which money or other thing of value is awarded based on chance.”

While that certainly applies to online casinos, “other thing of value” could also rope in online sweepstakes casinos.

Florida further defines ‘internet gambling’

As noted, both HB953 and S1404 amend the state’s definition of “internet gambling” to effectively ban iGaming and online sweeps.

Barnaby and Simon emphasize in their bills that “internet gambling” applies to the action of awarding money “or other thing of value … based on chance, regardless of any application of skill” through any games available on the Internet and on mobile devices and computers.

What kind of games? Any game that “simulates casino-style gaming, including, but not limited to, slot machines, video poker, and table games.”

Why these bills would affect future of online sweeps

The vagueness yet specificity of one phrase is potentially problematic for sweeps operators should this legislation pass: “engage in any game in which money or other thing of value is awarded.”

Sweeps casinos use virtual currency that carries no monetary value, frequently referred to as Gold Coins and Sweeps Coins. While users can’t buy them, they can earn Sweeps Coins and redeem them for real-money prizes.

So …

“Other thing of value.”

Of course, the inclusion of “simulates casino-style gaming” also hurts online sweeps casinos, as operators offer games like slots and blackjack.

If legislation passes, users at any of these sites would commit a second-degree misdemeanor. Operators, meanwhile, could commit a third-degree felony.

Bills also address sports betting in Florida

Sports betting was also addressed in the pair of proposals, which would ban online sports betting outside of the state’s compact with the Seminole Tribe.

The Seminoles, of course, runs the sole online sportsbook in Florida, Hard Rock Bet. There is some room for interpretation created by this language, as the tribe could look to integrate online casino gambling through its compact with the state.

One of the gambling industry’s leading gaming content and technology providers doesn’t expect to expand into the sweepstakes vertical “any time soon.”

During its 2024 Q4 earnings call this week, Light & Wonder reported a 64.4% year-over-year growth in its earnings per share — from 73 cents to $1.20 — as well as a 3.5% increase in Q4 revenue, from $770 million to $797 million.

But during the Q&A portion of the call, one investor asked Light & Wonder officials specifically about the social gaming arm of their business — SciPlay — and if they had considered branching SciPlay out into the rapidly growing sweepstakes gaming market.

Their answer?

No. At least, not right now.

“At the moment, we’re watching it closely,” said Matt Wilson, President and CEO. “Obviously, it’s a fast growing category but doesn’t face the same regulations and taxes that our operator partners do across the US market.”

L&W: ‘We don’t see a pathway’ to sweeps regulation in near future

Wilson said Light & Wonder is “pro-regulated and taxable gaming in all its formats.”

Currently, sweepstakes gaming — notable for its dual-currency model where one currency (often called Gold Coins) can’t be redeemed for real money, but another currency (often called Sweeps Coins) can be redeemed for actual money — is not regulated and, thus, not taxed.

If sweeps gaming comes under regulatory oversight, Light & Wonder, which provides real-money online casino games as part of its vast gambling portfolio, may be interested.

Until then …

“We see sweeps at the moment as being unregulated and so against our vision and strategy,” Wilson said. “If they were to regulate at some point down the path and tax in the same accordance as our other markets, then we’d be willing to explore that, but we don’t see a pathway to that happening any time soon.

“In fact, we see regulation actually going the other way and many (attorneys general) in different states putting cease-and-desists out against sweepstake operators.”

Wilson is likely referring to states such as Maryland, where the gaming regulator issued cease-and-desist letters to six sweepstakes operators in January, and West Virginia, where the attorney general sent subpoenas to an unknown number of sweeps platforms earlier this month.

Back in October, sweepstakes behemoth VGW — which owns Chumba Casino, LuckyLand Slots, and Global Poker — left Connecticut following receipt of a cease-and-desist letter there.

The Social and Promotional Games Association maintains the legitimacy and legality of its sites’ models, emphasizing they follow existing laws while offering alternative options for players.

Social casinos vs. sweepstakes casinos

Currently, SciPlay operates in the social gaming landscape.

Social casinos are different from sweepstakes casinos in that games are only free-to-play at social casinos. Sweeps players, meanwhile, can play games for free using Gold Coins but they can also make Gold Coin purchases that come with Sweeps Coins, and they can play with those Sweeps Coins and eventually redeem them for real money.

Still, social casinos make money through things like in-app purchases of extra features, as well as players buying more in-game currency.

SciPlay created the social casino Jackpot Party Casino Slots.

After what Wilson called “a little monetization issue” with Jackpot Party in the second half of 2024, he expects to see the platform “reaccelerating into 2025.”

Big names currently affiliated with sweeps operators

Evolution, another leading brand in gaming content and technology, currently provides games to both real-money iGaming platforms (including FanDuel Casino and Bet365 Casino) and the sweepstakes gaming platform High 5 Casino.

To make sure Evolution’s recent deal with High 5 wasn’t just for social gaming (Gold Coins only), we played one of Evolution’s slot games — Starburst — on High 5 using Sweeps Coins, so it’s for both Gold Coin and Sweeps Coin play.

Pragmatic Play is another example. Its games can be found in real-money online casinos like FanDuel Casino and Caesars Palace, as well as a range of sweeps sites.

Big-name iGaming operators, such as Hard Rock and BetRivers, also offer non-real-money platforms (Hard Rock Social Casino and BetRivers.net). But these aren’t sweeps casinos. Both are social casinos, without any option for Sweeps Coin play. (Although, at Hard Rock Social Casino, you can redeem in-game currency for prizes at a retail Hard Rock Casino.)

Potential for regulation down the line?

So, will regulation for the sweeps industry ever come?

The SPGA hopes so. It made that clear in a statement it released after the Mississippi Senate passed a bill that would ban sweeps gaming in the state.

“Rather than enacting punitive measures that reduce innovation and consumer choice,” the statement read, “we urge lawmakers to consider a regulatory approach that enshrines transparency and consumer protections while allowing Mississippi adults to continue enjoying the fun, fair, and free-to-play games offered by social sweepstakes operators.”

Of the handful of states currently considering legislation on sweepstakes gaming, only one — New Jersey — is putting regulation on the table. The other states, including Mississippi and Maryland, are considering bills that would outlaw sweeps sites.

There is a significant amount of tax dollars to be made from sweepstakes gaming, should it become regulated.

Estimates for online sweepstakes revenue in 2025 hover around $6.9 billion. The New Jersey regulation bill taxes sweeps revenue at 15%, the same rate online casinos pay.

Say, in a hypothetical scenario, sweeps were regulated across the U.S. at a 15% tax. From $6.9 billion in revenue, that would be $1.035 million in tax dollars.

Five well-known online sweepstakes casinos have pulled out of states that have recently taken action — or started the process to take action — against the sweeps industry.

McLuck and Hello Millions have both added West Virginia and Maryland to lists of prohibited states in their terms and conditions. Meanwhile, Jackpota, Spree, and Mega Bonanza have all done the same for Maryland.

All five sweeps operators made the changes to their respective terms and conditions on Feb. 21.

Jackpota, Spree, and Mega Bonanza already had West Virginia on their exclusion lists prior to Feb. 21. Those three have now prohibited access in these 12 states (emphasis added to iGaming states):

• Alabama
• Delaware
• Georgia
• Idaho
• Kentucky
• Louisiana
• Maryland
• Michigan
• Montana
• Nevada
• Washington
• West Virginia

McLuck and Hello Millions also have those 12 on their prohibited lists, in addition to New Jersey.

Why are they leaving Maryland and West Virginia?

In Maryland, Senate Bill 860 would ban online sweeps operators. It was introduced on Feb. 5 and is slated for a March 5 hearing with the Senate Budget and Taxation Committee. The fact that the bill secured a hearing so quickly suggests there is at least interest in discussing the topic. Many bills don’t reach the committee stage.

Maryland lawmakers are also considering bills to legalize and regulate real-money online casinos, which would compete directly against sweepstakes gaming sites. Both bills — one in the Senate and one in the House — have already received hearings in late January and the second week of February. There is no word yet on potential next steps.

Maryland also has a track record of being tough on sweeps operators. In January, the Maryland Lottery and Gaming Control Agency issued cease-and-desist letters to 11 operators, including six sweeps platforms — Stake.us, Zula, Golden Hearts, REBET, Fortune Coins, and McLuck (which confirms why McLuck left Maryland).

In West Virginia, Attorney General JB McCuskey has issued subpoenas to an unknown group of sweepstakes operators, per reporting by Casino Reports.

It’s unclear whether McLuck and Hello Millions were included in the subpoenas, but their decision to exit may be linked to increasing scrutiny, where it may be better to voluntarily leave the state before getting forced out in a time where optics are crucial for the sweepstakes industry — which has long maintained it offers a safe and legal form of gaming entertainment that doesn’t require players to spend any money.

The latest in a recent slew of moves from sweeps sites

The moves from these five sites aren’t quite as dramatic as the departures from two other noteworthy sweeps operators over the past week.

On Feb. 18, High 5 Casino stopped accepting new accounts or purchases from anyone located in six states with regulated iGaming — Pennsylvania, New Jersey, West Virginia, Delaware, Connecticut, and Rhode Island. (Michigan had already been on its prohibited list.)

Then, on Feb. 20, Stake.us followed suit, adding Pennsylvania, New Jersey, West Virginia, Delaware, and Rhode Island to its prohibited list. A customer service representative said Connecticut would be added soon. Like High 5, Michigan had already been on the Stake.us list.

Jackpota, Mega Bonanza, and Spree are all still active in Pennsylvania, New Jersey, Connecticut, and Rhode Island. Hello Millions and McLuck are still available in Pennsylvania, Connecticut, and Rhode Island.

It is possible that additional sweepstakes platforms may update their prohibited state lists in response to ongoing legislative discussions. The decisions by these operators to withdraw from certain states appear to be strategic responses to evolving perceptions of their industry. The moves demonstrate a willingness to be flexible in an ever-evolving market. (Except in McLucky’s case in Maryland, where they were ordered to leave.)

In a time where lawmakers in several states are trying to push bills that would ban sweeps sites altogether, some operators may view compliance and not ruffling too many iGaming feathers as a long-term business strategy, despite potential short-term revenue impacts.

That could also be why VGW, the owner behind Chumba Casino, LuckyLand Slots, and Global Poker, recently upped its minimum age requirement from 18 to 21. This change aligns with responsible gambling initiatives and may reflect an effort to comply with industry trends and regulations.

Of course, a recent Sweepsy analysis suggests VGW’s move could also have been a reaction to upcoming Google Ads policy updates regarding gambling.

SPGA: ‘We urge lawmakers to consider a regulatory approach’

It feels like sweeps sites are open to regulation, especially because that may ultimately be their only path forward.

Beyond reading between the lines of recent operator decisions, the Social and Promotional Games Association also made that openness pretty clear when it issued a statement in response to a sweeps ban bill passing the Mississippi Senate in which it specifically asked for member operators to be regulated.

“Rather than enacting punitive measures that reduce innovation and consumer choice,” the statement read, “we urge lawmakers to consider a regulatory approach that enshrines transparency and consumer protections while allowing Mississippi adults to continue enjoying the fun, fair, and free-to-play games offered by social sweepstakes operators.”

Another major online sweepstakes casino has pulled out of legal iGaming states in the U.S.

Stake.us, per its newest terms of service, which were updated last Thursday, has added New Jersey, West Virginia, Pennsylvania, Rhode Island, and Delaware to its list of Excluded Territories. A customer service representative also told Sweepsy that Connecticut will soon be added to the list, as well.

This comes just days after High 5 Casino similarly pulled out of legal iGaming states. And that move came just days after VGW increased the minimum age limit on its sites from 18 to 21.

This is a business decision

It doesn’t take a rocket scientist to figure out what’s happening here.

There is increasing scrutiny on the sweepstakes gaming industry. Whether it’s states considering bills to ban sweeps sites (Maryland, Mississippi, and Connecticut) or the West Virginia attorney general sending operators subpoenas, or even the Arizona gaming regulatory body releasing a PSA about sweeps platforms, sites like Stake.us are reaching an inflection point: Show they’re willing to play ball … or they may be booted from the game entirely.

In the American Gaming Association’s State of the Industry last Wednesday, president Bill Miller did not hold back in his statements clearly directed at sweeps operators. The AGA represents most of the gaming companies who have iGaming sites in states where they’re legal.

“Then there’s the newer categories of unregulated actors that appear to bypass or circumvent state gaming, from currency exchanges to digital asset platforms,” Miller said. “These entrants deploy legal acrobatics to avoid calling themselves betting or gambling, only then to offer products that most would most universally would agree are gambling, yet without the safeguards and regulatory constraints that build consumer trust.”

The Social and Promotional Games Association has defended its sites models, stating they comply with existing laws while offering alternative gaming options.

Officially exiting states with legal iGaming could be seen as an effort to align with regulatory expectations. Sweeps sites want to prove to lawmakers and the gambling industry not only that they take responsible gambling seriously (see: minimum age limit increases), but that they’re also willing to adapt to fit into the ever-changing gambling ecosystem.

This move may indicate that sweepstakes operators are prioritizing long-term regulatory acceptance over immediate market presence.

Stake.us had already left Michigan

Stake.us is now not available in 13 states (including Connecticut, which isn’t yet listed in its Excluded Territories). It already had the following states excluded in its terms of service:

• Washington
• New York
• Nevada
• Idaho
• Kentucky 
• Michigan
• Vermont

Michigan is the only iGaming state Stake.us had already pulled out of prior to last Thursday.

Here is what the Stake.us terms of service say about access to its site in the excluded markets:

“We are specifically relying on such representations in providing you access to the platform, customer account, and games. If you reside in any of the excluded territories and nonetheless check the box for acceptance of these terms, access or use the platform, create a customer account, and/or play the games despite our efforts to prevent you from doing so … we reserve all rights to take appropriate action against you.”

The terms make no mention of a phase-out approach for access in the five new excluded states. High 5 Casino, for instance, said in an email to its Pennsylvania players that no new sign-ups or purchases could take place starting Feb. 18, and that all PA accounts would close on March 14.

Wednesday marked a banner day for legal sports betting and online casino gambling in the United States, according to the American Gaming Association.

In 2024, the AGA announced, commercial gaming revenue topped out at a record $71.92 billion, up 7.5% from the previous year. It marked the fourth straight year in which commercial gaming set an annual revenue record.

“In 2024, Americans embraced the diverse legal gaming options available to them — whether in casinos, at sportsbooks, or online — leading to another record-setting year for our industry,” Bill Miller, AGA president and CEO, said in a statement. “As we build on this success, the AGA remains committed to fostering additional growth that benefits consumers, operators, and communities alike.”

That said, during the AGA’s State of the Industry on Wednesday, Miller made it a point to address the unregulated online sweepstakes casinos industry, noting that he believes those sites essentially take advantage of a growing and more-accepted landscape of online gaming.

AGA: ‘Most universally would agree’ sweeps sites ‘are gambling’

The AGA lauded the growing legal online gaming sector in the U.S., which accounted for 30% of the country’s commercial gaming revenue last year. Specifically, online casinos saw a 28.7% spike in revenue, up to $8.41 billion generated by just seven states with regulated iGaming.

However, Miller noted that these stellar results create a larger “target” for illegal operators to home in on.

“These illegal operations,” Miller said, “exploit consumer confusion and threaten to undermine the public trust we have built over many years.”

Those comments were likely directed at offshore operators.

These next comments were likely directed at the sweeps operators:

“Then there’s the newer categories of unregulated actors that appear to bypass or circumvent state gaming, from currency exchanges to digital asset platforms. These entrants deploy legal acrobatics to avoid calling themselves betting or gambling, only then to offer products that most would most universally would agree are gambling, yet without the safeguards and regulatory constraints that build consumer trust.”

Miller: Sweeps casinos add ‘nothing of lasting economic value’

According to Eilers & Krejcik Gaming — and as shared by Howard Glaser, the global head of government affairs and legislative counsel at Light & Wonder — online sweepstakes casinos generated around $3.5 billion in revenue last year. Those operators are projected to reach nearly $5 billion in 2025.

These platforms, according to Miller, “exploit legal loopholes” in order to conduct business. Because of these “unregulated actors,” the U.S. loses out on nearly $17.3 billion in estimated revenue.

“They’re targeting vulnerable communities,” Miller said, “generating zero tax revenue to support local services, attracting crime and exploiting people who confuse them with legitimate gaming machines.”

As Miller put it, unregulated gaming such as sweeps casinos “builds nothing of lasting economic value and undermines both the industry’s integrity and the community’s well-being.”

SPGA says to stop ‘mischaracterizing an innovative category’

Following Miller’s remarks, the Social and Promotional Gaming Association (SPGA) issued a statement, emphasizing that the AGA “trotted out many of the same tired canards about social sweepstakes that self-interested critics have peddled for months.”

“Properly operated sweepstakes sites,” the SPGA said, remain legal in almost all states. Those platforms, the organization said, operate within “well-established legal frameworks” that do not exist with black-market, offshore sportsbooks, and online casinos.

Along those lines, the SPGA said that the AGA “knows its claims of irresponsible operation by social sweepstakes sites are misleading.” Members of the SPGA — which include a number of the most recognizable online sweepstakes sites — follow similar verifications, policies, and technologies of AGA members.

As stated by the SPGA:

“The AGA willfully ignores these facts because of a small but vocal cadre of members who are anti-competitive and resistant to innovation.”

The SPGA concluded its response with a call to action to the AGA.

“A new, aggressive federal administration has upended nearly every long-held assumption about the primacy of states in regulated gambling and threatened to open a 50-state federal sports betting market without ever holding a hearing or passing a bill. And that’s just in the first 30 days.

“We urge the AGA to focus on matters such as these that are genuinely relevant and pressing to the industry instead of wasting resources mischaracterizing an innovative category.”

Legal sports betting, iGaming set revenue records

Overall, as noted, the AGA reported a record-setting year for legal gambling in the U.S. What’s more, it was capped by an all-time single-quarter revenue record of $18.62 billion in Q4.

Sports betting generated some $13.7 billion in revenue last year, up from just over $11 billion in 2023. As for online casinos, in the six states with year-over-year data available, all reported record revenue totals.

In its press release, the AGA emphasized that the commercial gaming industry contributed more to state and local governments more than ever in 2024, with operators paying over $15.6 billion in gaming taxes.

“The sustained growth of legal gaming is a win for our industry and the consumers and communities we serve,” Miller said in a statement. “Every dollar of gaming revenue fuels jobs, investment, and economic growth—reinforcing why the legal industry’s expansion is so important.”

As sweepstakes casinos come under attack by more and more state regulators, one major operator has made changes to its terms and conditions that essentially pull itself out of Pennsylvania.

As reported by The Closing Line, High 5 Casino notified customers that it “will be discontinuing service” in the Pennsylvania.

According to an email sent to customers of High 5, “(a)ll existing Pennsylvania player accounts will be permanently closed” by March 14.

All PA accounts will be closed in 4 weeks

Per the email to customers, High 5 no longer allows new Pennsylvania accounts and purchases as of Feb. 18. Less than four weeks later, all accounts will be closed.

As shared by The Closing Line, all existing players will have the ability to continue to play and redeem rewards with High 5 until March 14.

High 5 made it clear, however, that “(t)hese changes apply to Sweeps play only. Classic mobile play will continue to be available in Pennsylvania.”

With these updated terms and conditions, Pennsylvania joins the likes of six other states (all iGaming states) that did not previously appear where Sweeps Coin play will no longer be allowed, including nearby New Jersey.

Keeping an eye on NJ, too …

Speaking of New Jersey, such a move by High 5 comes on the heels of Garden State lawmakers filing a bill last month to regulate sweepstakes casinos.

An Assembly bill proposed details to license and tax sweeps gaming sites that more or less already operate outside of the state’s regulatory purview. If passed, the New Jersey bill would integrate such platforms within its oversight alongside its online casinos.

This proposal would require sweepstakes casinos to follow the same requirements as licensed iGaming operators, including setting an age limit of at least 21 years old to participate.

Interestingly, and on the heels of New Jersey’s proposal, High 5’s updates follow the trend of another prominent online sweepstakes casino operator.

High 5 follows in footsteps of VGW

VGW recently announced that it was raising its age limit for players from 18 to 21 years old, affecting customers of sites such as Chumba Casino, LuckyLand Slots, and Global Poker. This change went into effect on Feb. 19.

Certainly, this is an attempt to boost responsible gaming efforts in the face of many states addressing the potential ban of sweepstakes casinos.

For VGW, the complete phase-out of under-21-year-old players will occur on April 17.

These moves from High 5 and VGW certainly show operators’ willingness to adjust to the changing landscape of online sweepstakes, especially as state regulators take aim at the determined “unregulated” market, classifying said sites as gambling operators.

Similarly, as concluded by The Closing Line, both VGW and High 5 differentiate themselves from the rest of the sweeps industry and potentially “force the rest” to follow suit.

In 2024, among contacts to Florida’s problem gambling helpline where the gambler listed the type of gambling they were struggling with, 29% dealt with online casino gaming. That’s according to documentation sent to Sweepsy by the Florida Council on Compulsive Gambling, the state’s problem gambling helpline (888-ADMIT-IT).

Regulated real-money online casinos are not legal in Florida.

There are two types of sites offering any types of casino games there: offshore betting sites and sweepstakes casino sites. So that 29% of callers — totaling 270 individuals — were very likely struggling with either of those two options.

“We had 1,355 online gambling help contacts last year. Of those 1,355, only 929 revealed what type of online gambling (they were struggling with),” FCCG Executive Director Jennifer Kruse told Sweepsy. “So it is a significant amount because it’s probably more.”

The fact that sweeps players may run into problem gaming issues isn’t necessarily the issue here for Kruse.

It’s that she wishes more was being done to educate sweeps players on responsible gaming resources.

Kruse: Put problem gambling helplines on sweeps sites

Kruse called sweepstakes gaming a “slippery slope.”

“Because people don’t even understand what they’re doing,” she said. “And that’s really the biggest risk — the lack of education about the bets that they’re placing.

“Online casino gaming with real money is not legal in Florida. So these people are all doing something — they’re doing something. Not only that, but when you really think about it, they’re doing something and they’re finding us not on those sites, right? Those operators aren’t required to have any type of consumer protection. So they’re struggling due to their gambling, and then they’re going and they’re trying to find help on their own.”

A potential improvement for responsible gaming on sweeps casino sites, in Kruse’s eyes, would be to require operators to list some sort of problem gambling or responsible gaming helpline phone number on the homepage. 

That’s a requirement faced by regulated real-money operators in US states.

Most often, you’ll find the helpline located somewhere in the site’s footer menu at the bottom of the page. Just head to BetMGM or DraftKings, scroll all the way down, and you’ll see.

Sweeps operators, meanwhile, do not face regulation, so they do not have that requirement.

Of 19 sweeps casinos Sweepsy checked for this analysis, zero listed a responsible gaming helpline on their homepage or footer menu. One — Stake.us — did include an email address for Gaming Addicts Anonymous.

It should be noted that all 19 did, however, include links to safe play sections on their site or documentation that include information on problem gaming resource groups. It should also be noted that VGW recently switched the minimum age requirement for its three sites (Chumba Casino, LuckyLand Slots, and Global Poker) from 18 to 21.

SPGA eyes ‘consumer control’ evolution with code of conduct

The Social and Promotional Games Association, the recently formed advocacy group for the sweeps industry, stresses that its member operators do already push for responsible gaming. The SPGA code of conduct currently contains four key pillars, which focus on age verification (18 or older), location verification, identity verification, and anti-money laundering.

Sweepsy asked the SPGA if it would consider requiring its member operators to list helplines directly on their sites.

A spokesperson didn’t answer that specific question, but they did call attention to the code of conduct and potential additions to it in the future.

“SPGA members provide consumers with robust ways to control their play. Expanding and refining consumer control will be a central focus as the SPGA continues to evolve its Member Code of Conduct,” the spokesperson said.

Florida’s role in the sweepstakes gaming landscape

Florida is seen as a state to watch in relation to the sweeps industry as legislators, attorneys general, and gaming commissions around the country formulate opinions about sweepstakes sites in 2025.

For one thing, Florida is one of two states (the other is New York) that limits sweepstakes prize redemption to a maximum of $5,000, which is seen as one of the more forward-thinking policies to promote safe gaming in an industry that doesn’t face any regulation.

Florida was also historically quite tough on the internet sweepstakes cafes that some argue follow the same framework as modern sweeps casinos. A 1998 ruling against one such cafe outlined why the court deemed the cafe was offering illegal gambling.

“The opinion found that even if a consumer product, such as a phone card, is attached to the transaction, the inclusion of a sweepstakes based on chance makes the operation illegal under Florida law,” Holland & Knight attorneys James Meggesto and Samir Patel wrote in a legal analysis of a Florida lawsuit against VGW that was dismissed last week.

“Both the attorney general’s opinion and the plaintiff’s claims in Knapp emphasize the core legal principles that if a game involves an element of chance and monetary consideration, it likely falls under Florida’s prohibition of unlicensed gambling operations.”

Fortunately for VGW, the lawsuit was thrown out before it got that far.

We’ll see if Florida stands pat with its sweepstakes policies, or if takes action. In recent weeks, states have either seen lawmakers propose bills to regulate sweeps sites (New Jersey) or ban them (Maryland, Mississippi, Connecticut), or they’ve also seen their attorney general (West Virginia) serve subpoenas to them.

Chumba Casino, LuckyLand Slots, and Global Poker are no longer 18-plus.

Starting Feb. 19, VGW, the operator behind these three behemoth sweepstakes gaming sites, will increase its minimum player age requirement from 18 to 21. In fact, the footer menu of VGW sites already say 21+, not 18+. The terms and conditions say it, too.

This is part a phased approach to barring 18-, 19-, and 20-year-olds from playing games on VGW sites, in what is no doubt an effort to boost responsible gaming efforts as a handful of states consider bills banning sweepstakes sites.

18+ players will be locked out starting Feb. 19

This decision was emailed out to players last week. And it was shared more publicly this week, when a user posted the messaging from VGW on Chumba Casino’s Reddit page.

“Last day of gameplay for under-21s is February 18, 2025,” the Reddit post read. “Play quickly (and responsibly!)”

This process actually began on Feb. 12. That day, players younger than 21 were no longer allowed to sign up for Chumba Casino, LuckyLand Slots, or Global Poker.

“However, not all access to the site by those 18-20 (was) prohibited (Feb. 12),” the Reddit post read. “It will be done in 3 steps.”

Those three steps:

• Feb. 12 — Any existing players on VGW sites 18-20 years old could no longer make any Gold Coin package purchases. They were, however, allowed to continue playing with whatever game currency they had left in their account.
• Feb. 19 — Players 18-20 years old will no longer be able to play any games on Chumba Casino, LuckyLand Slots, or Global Poker, even just for Gold Coins. Sweeps Coins redemptions will also no longer be permitted from 18-, 19-, and 20-year-old players.
• April 17 — All players 18-20 years old will no longer be able to access VGW sites and will be “locked out” until they turn 21. And when they turn 21, they will have to contact support to re-access their account. It will not be an automatic process.

So, in summary …

“If you’re under 21 (ages 18-20) … (2/12/2025): No more currency purchases allowed, gameplay still allowed with whatever currency you have left,” the Reddit post read. “2/19/2025: No more gameplay allowed, only SC redemptions allowed … 4/17/2025: All access locked until you turn 21. You must contact support once you are 21 to get back your account.”

Timing of this VGW change is likely intentional

Chumba Casino, LuckyLand Slots, and Global Poker are the first known sweepstakes gaming sites to become 21-plus instead of 18-plus.

The timing of this decision is no coincidence.

Sweepstakes gaming has come under fire in recent weeks, as the unusually large deluge of gambling related bills to start the 2025 legislative session has included quite a few directly related to sweepstakes sites.

Connecticut, Maryland, and Mississippi are all considering bills that would ban sweeps sites. New York is considering an online casino bill that would effectively oust any sweeps casino. In fact, the Mississippi Senate has already passed the bill and sent it over to the House.

“We doubt voters in Mississippi appreciate their elected officials dictating what games adults can and can’t play on their phones,” the Social and Promotional Games Association said in a statement. “It’s a waste of time and a transparent and misguided attempt to pay out protectionist favors for the casino industry. Voters deserve better than lawmakers who prioritize the protection of a slot machine maker over individual freedom. 

“Rather than enacting punitive measures that reduce innovation and consumer choice, we urge lawmakers to consider a regulatory approach that enshrines transparency and consumer protections while allowing Mississippi adults to continue enjoying the fun, fair, and free-to-play games offered by social sweepstakes operators.”

New Jersey is doing just that, as lawmakers consider a bill that would regulate sweeps gaming in their state. But it’s the only state taking that approach.

Meanwhile, the West Virginia attorney general has sent subpoenas to sweeps operators and the Arizona gaming regulatory body released a PSA specifically warning residents about such sites.

On the judicial side, lawsuits continue to be filed against sweepstakes operators as well. And even though VGW just secured a huge win in Florida, new suits filed in California could be troubling for the industry, as they are taking a “public relief” approach rather than suing for gambling-related damages.

Will revenue losses be worth the gain in perception?

So, all that is to say …

Now is the right time to make a change specifically geared toward boosting responsible gaming, which is at the forefront of many sweeps opponents’ arguments as to why the sites should be banned. 

VGW clearly made a thought-out decision here: Any potential losses from dropping its 18-20-year-old players is worth the potential gains of showing power-brokers and lawmakers that they take responsible gaming seriously. There are peer-reviewed studies out there that show the younger populations can be more susceptible to gambling problems.

We’ll see if this starts a trend, or if VGW stands on a 21-plus island.

The Mississippi Senate on Tuesday passed a bill that would explicitly outlaw online sweepstakes casinos with a vote of 44-1. Next, the bill heads to the House of Representatives for consideration.

Last month, Republican Senator Joey Fillingane introduced Senate Bill 2510, an amendment to existing legislation outlawing electronic sweepstakes devices and establishments like internet sweepstakes cafes. His bill sought to expand those legal definitions to include online sweepstakes casino games, entities operating or promoting sweeps gaming sites, and would also raise the criminal penalties for violations.

A substituted version of that bill with comparable key details is what ultimately passed in the Senate, as first reported by Daniel Wallach on LinkedIn. 

While the bill passed by a landslide in this chamber, Wallach notes that a “motion to reconsider” was entered in the Senate, with no accompanying details as yet. 

“Barring any reversal, it appears that the Mississippi Senate has become the first legislative body in the U.S. to ban online sweepstakes casinos,” Wallach writes.

Potential Mississippi sweeps ban details

As with the original bill, the committee substitute for SB 2510 that passed in the Senate seeks to expand current prohibitions of gambling like electronic sweepstakes devices to include their online, internet-based counterparts.  

More specifically, the act aims to amend sections of the Mississippi Code of 1972:

• “To include any online, interactive, or computerized version of games within the prohibition on betting, gaming, or wagering and any online, interactive, or computerized version of any game as defined in section 75-76-5 (K) shall be a gaming device” and
• “To include internet sweepstakes casinos within the prohibitions of this section” (Section 97-33-8)

The bill also raises the criminal charge for convicted violations (for both operators and promoters) to a felony, subject to:

• A fine up to $100,000 or up to 10 years in prison, or both
• Forfeiture of assets, rights, and privileges used in connection with violations of the provision

This is a significant detail considering it would also implicate additional parties seen as promoting sweeps casinos which could include affiliates, advertising agencies, payment processors and possibly others.

If the bill proceeds and passes in the House, it will go to Governor Tate Reeves’ desk to sign it into law. The bill would be effective as of July 1, 2025 if approved. 

Similarities to bills in other states

Mississippi was the first to propose a bill to ban online sweepstakes casinos, but it’s not the only state to do so. Connecticut and Maryland also have sweepstakes gaming ban bills on the table, with hearings coming up in each state – a public hearing in CT on Feb. 14 and committee hearings for MD’s bills on March 5 and 6. 

These three states all have established anti-sweepstakes gambling stances and are looking to update outdated gaming regulations and sweepstakes laws that were written in a time before concerns of unregulated internet gaming (and to make them more enforceable).  

While each sweeps ban bill is a little different, there are a number of similarities emerging across states in these early editions. 

Like the MS bill, the MD and CT bills both include not only the operators themselves but also entities promoting them. Maryland’s proposed Senate bill explicitly prohibits promoters of sweepstakes casinos including any entities holding a gaming license like gaming manufacturers and media affiliates. 

That version would also make violators guilty of a misdemeanor and subject to revocation of gaming licenses, up to three years imprisonment, and a fine up to $100,000. A similar companion bill was introduced in the Maryland House. 

Connecticut’s proposed bill also includes promoters and is unique in naming sports betting in its updated sweepstakes prohibitions. It would update existing law to include the following provision: “No person shall conduct or promote a sweepstakes or a promotional drawing…that allows or facilitates participation in any real or simulated online casino gaming or sports wagering, unless such person is licensed under chapter 229b.”  

Similar to the MS bill, CT would raise the penalty on violators from a class A misdemeanor to a class D felony. 

If these bills pass and prove successful in helping states push sweeps operators out of their markets, expect other states to follow with comparable bills.

The Social and Promotional Games Association, formed in late 2024 to advocate the social and sweepstakes gaming industry, is focused on building upon its Member Code of Conduct. That code launched with four main tenets in December:

• Age verification to ensure players are 18 and older
• Identity verification
• Location verification
• Anti-money laundering policies

With those core pillars in place, moving forward, the SPGA has identified one of its key areas for growing its code of conduct.

“Expanding and refining consumer control will be a central focus as the SPGA continues to evolve its Member Code of Conduct,” an SPGA spokesperson told Sweepsy in a statement.

‘Robust ways to control their play’

This statement stemmed from a question regarding problem gambling helplines.

All regulated real-money online gambling sites — whether sports betting, casinos, or lottery — are required to list the number for a problem gambling helpline. Most often, you’ll find the number in the footer menu at the bottom of the site.

As they don’t face any regulation, sweepstakes gaming sites are not required to list any such phone numbers. The SPGA did not specifically respond to whether it would push for member operators to include problem gaming contact info directly on their sites.

Instead, the spokesperson wrote: “SPGA members provide consumers with robust ways to control their play.”

We see you, Stake.us and Crown Coins

Sweepsy checked 19 sweeps casino sites. Most site footers contained clickable links to responsible gameplay information, often including contact information for problem gaming resources like Computer Gaming Addicts Anonymous or Gaming Addicts Anonymous. (Credit Crown Coins for having a big, bright yellow button directing players to these resources.) 

None of the 19 sites had any helpline phone number listed visually on their homepage.

One, though, did provide an email address for those seeking help: Stake.us.

“Stake is committed to responsible social play, for more information visit Gamingaddictsanonymous.org,” a section of the Stake.us footer reads.

What better time to promote safe gameplay?

Now is a critical time for the SPGA, and, really, the sweepstakes industry as a whole.

The start of legislative sessions around the country has brought about a handful of bills involving sweeps operators — and most of them are positioned against the operators.

Connecticut, Maryland, and Mississippi are considering bills that would ban sweeps sites, and New York is considering a bill that would effectively prevent them from entering an iGaming market, should that be legalized.

West Virginia’s attorney general is taking legal action against sweeps operators. Arizona’s gaming regulator issued a PSA warning residents about sweeps sites. Michigan, Delaware, and Washington have all also sent cease-and-desist letters to sweeps operators.

New Jersey, meanwhile, is considering a bill that would regulate and legitimize sweeps gaming sites.

With so much legal discussion surrounding the sweepstakes gaming industry, both in state legislatures and courthouses across the country, it behooves sweeps operators to promote responsible gameplay as much as humanly possible. Lawmakers need to be convinced sweeps sites, and their dual-currency model, are safe.

So it’s no surprise the SPGA is focused on “consumer control” as it fleshes out the framework and backbone of its code of conduct. The SPGA does not have regulatory control over its member operators. So it can’t legally force them to do anything. But boasting a strict set of guidelines it requires member operators to adhere to is meaningful.

At the same time, the SPGA is working to spread awareness of how sweepstakes players differentiate from real-money players.

“Social sweeps is a free-to-play product, and the vast majority of players never make a purchase,” the SPGA spokesperson told Sweepsy. “For the consumers who do, the typical purchase size is a few dollars. The social sweeps product is fundamentally different than traditional real-money online casinos.”

According to an SPGA fact sheet, roughly 2/3 of players at “a typical SPGA member site” play only the free version of the games.

Connecticut is adding more fuel to its anti-sweepstakes fire with a recent filing of a bill that would explicitly outlaw and criminalize online sweepstakes casino operators. It would also bar the use of lottery ticket courier services.

Senate Bill 1235 is not the first bill of its kind, but it could be a pivotal one for other states to follow for a number of reasons. 

Chances of passing

Wide legislative support and legal precedent give this particular bill solid chances of getting through. In contrast to a number of anti-sweeps bills in other states that were proposed by a single sponsor in one legislative chamber, SB1235 was introduced by the full Committee on General Law. 

The text introduction calls it: “An act concerning the Department of Consumer Protection’s recommendations regarding lottery and gaming regulation.”

The fact that the recommendations are coming straight from the state’s gaming regulator — the Department of Consumer Protection — is another strong indication that the bill’s contents have heavy support.  

Connecticut also, like many other states, has established sweepstakes laws that are admittedly outdated, written for a time when there was little worry about online sweepstakes gaming. And in 2024, the Department of Consumer Protection issued a cease-and-desist letter to VGW, which exited the state in response. 

For all these reasons, CT is unsurprisingly one of the most common states appearing on sweepstakes sites’ restricted states lists.  

Updating laws and upping the ante

The new bill would repeal and replace a number of existing sections in the general statutes with varying proposed effective dates. The sweepstakes update would be effective Oct. 1, 2025 if approved. 

The first two restrictions are already part of Connecticut law. The third is new:

“No person shall conduct or promote a sweepstakes or a promotional drawing authorized by the provisions of section 53-278g that (1) is not related to the bona fide sale of goods, services or property, [or] (2) uses a simulated gambling device, or (3) allows or facilitates participation in any real or simulated online casino gaming or sports wagering, unless such person is licensed under chapter 229b.”

The first stipulation has been called into question for sweeps gaming operators, whether they are actually promoting a bona fide sale of goods or services with their sweepstakes promotions. But the arguments have proven murky, at best, on both sides, at least in the eyes of the law. The second part clearly targets devices that used to be found in internet sweepstakes cafes of old, or their modern counterparts. 

Part 3 leaves little up for interpretation on whether the online casino games or sports betting markets offered by sweepstakes gaming sites are allowed. It would outlaw any of those not approved and regulated by the Connecticut Department of Consumer Protection, the state’s gaming regulator. That equates to all sweeps sites currently serving customers in Connecticut.  

Violators are subject to the penalty for professional gambling as provided in subsection (b) of section 53-278b. Part of the amendment would raise that penalty from a class A misdemeanor to a class D felony.

The bill also designates that sites offering these outlawed games would be “deemed an unfair or deceptive trade practice.” As US gambling attorney Daniel Wallach pointed out on LinkedIn, that clause could give potential plaintiffs a much stronger case in pursuing civil remedies against violators. 

A potential blueprint for others

If this proposed bill does pass, it’s quite possible that other states will attempt to follow a similar template. After all, Connecticut has been quite effective in combating sweepstakes operators thus far. 

In addition to doing so in the name of consumer protection, the hard-nosed stance also supports regulated casinos and sportsbooks operating legally in the state’s regulated market. 

The state’s key gambling stakeholders, the Mashantucket Pequot Tribe, the Mohegan Tribe, and the Connecticut State Lottery, would likely celebrate a bill that helps to prevent the operation of sites that many view as competition to their businesses and profits. Which means it could also be a win for tax revenue for the state. 

Connecticut isn’t the only state searching for answers on the best approach to clarifying and updating their sweepstakes laws to make them more (or actually) enforceable. At least one lawmaker in Mississippi is attempting a similar approach of amending current anti-sweepstakes rules to explicitly name online sweeps gaming sites and raise the criminal penalties for violations. New York is another major state exploring legislative ways to codify anti-sweepstakes law. 

If this approach proves successful for Connecticut, we could see a number of other anti-sweepstakes states, especially those with strong tribal gaming presence, follow suit.