State-Level Bans Gaining Momentum: States like New York are advancing legislation to ban sweepstake casinos, with proposed penalties including hefty fines (up to $100,000) and even felony charges for operators, suppliers and in some cases, affiliates.
- Mississippi Moves to Conference Committe: Senate declined the House-approved version on Mar. 27 and has until Apr. 6, to come to an agreement.
Regulatory Concerns Over Legal Loopholes: Lawmakers argue these platforms exploit legal gray areas by mimicking real-money gambling without adhering to consumer protection or anti-money laundering regulations.
Industry Opposition to Bans: Industry groups like the SPGA push back, claiming these laws mischaracterize sweepstakes games and could harm legitimate promotional businesses.
🛑 States with bills to ban Sweepstake casinos
The casino gaming industry is rapidly expanding in the United States, with sweepstakes casinos emerging as the top alternative to traditional gambling platforms. The gaming sites operate in a gray area due to the no-purchase format with Gold Coins and Sweeps Coins.
Legal challenges have emerged, leading states to accept or oppose sweepstakes gaming. Since the start of the year, more than six states have introduced bills to ban this model. All eyes are currently on New York, which has a bill to penalize operators and suppliers of sweepstakes gaming with hefty fines reaching $100,000. Over 50% of the sweepstakes operators have voluntarily pulled out of the market.
For now, sweepstakes gaming is a popular alternative to real money casinos and a multi-billion-dollar industry. However, that could change if more states decide to take legal action against gaming operations.
| State | Bill | Details of bill | Progress |
|---|---|---|---|
| Connecticut | SB 1235 | Prohibits real or simulated casino gaming by sweepstakes operators | Filed in Committee |
| Florida | SB 1404House Bill 953 | Seeks to strengthen the state’s definition of online gambling. | In Committee hearings |
| Maryland | SB 0860 | Prohibition of sweepstakes gaming | Passed in Senate; awaiting House hearing |
| Mississippi | SB 2150 | Seeks to criminalize online sweepstakes casinos | Bill going to conference committee |
| New Jersey | A 5447 | Prohibit a sweepstakes model of wagering | Introduced |
| New York | SB 5935AB 6745 | Prohibit online sweepstakes gaming | SB is on the Senate Floor. AB is in Committee. |
The industry is at a crossroads, with growing legal scrutiny and regulatory changes reshaping its future. While these platforms have gained popularity by offering an alternative to traditional online casino gaming, legislative efforts in several states show signs of potential restrictions or full bans.
The introduction of legislation in states like New York and New Jersey poses an increased risk to the industry. The lack of uniform federal laws leaves regulation on a state-by-state basis, making compliance difficult for operators.
Will more states introduce legislation against sweepstakes gaming? Will the bills pass into law or become a tool for creating new regulations to help the sweepstakes industry grow even further? For now, we are in a wait-and-see period.
❌ Database of operators and restricted states
The table below gives you a quick overview of the sites available and the restricted states. For a complete view, see our list of sweepstake casinos here.
| Owner | 🎰 Operator | ❌ Restrictions |
|---|---|---|
| B2Services OÜ | McLuck | AL, CT, GA, ID, KY, MD, MI, MS, MT, NV, NY, WA, WV |
| VGW Holdings Ltd. | Chumba Casino | CT, ID, MI, MO, MS, WA |
| VGW Holdings | Wow Vegas | DE, MI, WA |
| Sweepsteaks Limited | Stake.us | DE, ID, KY, MI, NJ, NV, NY, OH, PA, RI, VT, WA, WV |
| VGW Holdings | Global Poker | CT, ID, MI, MT, WA |
| B2Services OÜ | Mega Bonanza | AL, CT, DE, GA, ID, KY, LA, MA, MD, MI, MS, MT, NJ, NV, NY, OH, PA, WA, WV |
| A1 Development LLC. | FunzCity | ID, MI, WA, WY |
| Yellow Social Interactive Limited | Pulsz | AL, CT, ID, LA, MI, MS, MT, NV, NY, TN, WA, WV |
| A1 Development LLC. | Fortune Wheelz | ID, MI, WA, WY |
| RealPlay Tech Inc. | RealPrize | ID, MI, NV, NY, WA |
| Sunflower Limited | Crown Coins | ID, LA, MI, MT, NV, WA |
| A1 Development, LLC. | FunRize | ID, MI, WA, WY |
| B2Services OÜ, | Jackpota | AL, CT, DE, GA, ID, KY, LA, MD, MI, MT, NJ, NV, NY, PA, WA, WV |
| A1 Development LLC. | No Limit Coins | ID, MI, WA, WY |
| Matt Ricci and Mario Dodev | Fliff | ID, HI, NV, TN, WA |
| Yellow Social Interactive Limited | Pulsz Bingo | AL, CT, ID, LA, MI, MS, MT, NV, NY, TN, WA, WV |
| Virtual Gaming Worlds (VGW). | Luckyland Slots | CT, ID, MI, MT, WA |
| Gold Coin Group LLC | Chanced | ID, KY, MI, NJ, WA |
| Living Pixels Studio LLC | DingDingDing | ID, KY, MI, NV, WA |
| Silver Swan LTD. | Legendz | ID, MI, MT, ND, NV, OH, WA |
| Woopla Inc | FunzPoints | ID, MI |
| Citi Media Tech, LLC | Carnival Citi Casino | FL, GA, ID, KY, MI, MO, MT, NC, NE, NV, NY, OH, PA, RI, UT, WA, |
| High 5 Entertainment, LLC | High 5 | CT, DW, GA, ID, KY, LA, MD, MI, MT, NJ, NV, NY, PA, RI, WA, WV |
| Thrillzz Inc | Thrillz Casino | AL, GA, IA, ID, IN, KY, LA, MI, MN, MS, NV, OH, SC, WA |
| Smarter Solutions Professional Services LLC. | Sportzino | ID, GA, MI, WA |
| NSUS Group Inc. | ClubGG | GA, HI, MI, MN, MS, MT, OK, SC, SD, WA |
| Joy Media Works LLC | Zitobox | WA |
| Compass Systems Limited | Yay! Casino | ID, KY, MI, NV, NY, VT, WA |
| Jon Kaplowitz | Clubs Poker | ID, LA, MI, MT, NV, WA |
| Social Gaming LLC. | Fortune Coins | ID, MI, WA |
| Carson Hubbard | ReBet | ID, KY, NV, WA |
| ARB Gaming LLC | Modo.us | CT, DE, ID, LA, MD, MI, MT, NJ, NV, PA, RI, WA, WV |
| Heuston Gaming Malta Limited | Sweeptastic | ID, MI, MT, NV, WA |
| ProphetX OpCo LLC | ProphetX | AL, CO, ID, KY, LA, MI, MT, NV, OH, TN, WA |
| Special M Limited | Sports Millions | AL, DE, ID, LA, MI, MT, NV, WA |
| Fifth Street Gaming Digital | JefeBet | CT, DE, HI, ID, KY, LA, MI, MT, NJ, NV, OH, PA, WA |
| Jefe Limited | TheBoss Casino | AR, GA, HI, ID, IA, KY, LA, MI, MS, ND, NV, NY, OH, TN, VT, WA |
| Gold Coin Group LLC. | Punt | ID, KY, MI, NV, WA |
| The Money Factory LLC. | The Money Factory | ID, LA, MI, MT, NV, WA |
| Green Candy Solutions, Inc | Cashoomo | DE, ID, MI, WA |
| Rolling Riches Ltd. | RollingRiches | DE, HI, ID, KY, MI, NV, WA |
| Element Partners | ClubWPT | AL, FL, GA, ID, MI, MN, MS, MT, OK, WA |
| Spiral Interactive | Gambino Slots | No restricted states |
| Kickr Games Pty Limited | Kickr | Casino: ID, MI, MT, WA Sportsbook: AL, GA, HI, IA, ID, IN, KY, MD, MI, MN, MS, MT, NV, OH, SC, WA |
| B2Services OÜ | PlayFame | AL, DE, GA, ID, KY, LA, MI, MT, NJ, NV, WA |
| Internet Cafe Games | VegasX | ID, NV, WA |
| SpinPals LLC. | SpinPals | AL, CT, ID, LA, MI, MT, NV, WA |
| Golden Hearts Games, Inc. | Golden Hearts Games | ID, MI, NV, WA |
| Atlantic Management B.V. | Luckybird.io | ID, KY, MI, NV, WA |
| Scrooge LLC. | Scrooge Casino | AK, AZ, ID, MI, MT, WA |
| Jacob Fortinsky and Kelechi Ukah | Novig | AL, CO, ID, LA, MI, MT, NV, TN |
| Irving Place Technologies LLC | Playnomic | ID, NV |
| Rubystone Ventures LLC. | RubySweeps | CT, DE, ID, KY, MI, NE, OH, RI, UT, WA |
| Yellowbrick Holdings Limited | Runestake | ID, MI, NV, WA |
| JSP Media Holdings LLC | Vegas Gems | CT, ID, MI, MT, NV, WA, WY |
| A1 Development LLC | TaoFortune Casino | ID, MI, WA, WY |
| Skillz Inc. | Skillz | AR, CT, DE, LA, SD |
| Stackr Social, LLC. | Stackr | DC, ID, MI, NV, WA |
| Play Spree Ltd. | Spree Casino | AL, DE, GA, ID, KY, LA, MI, MT, NV, WA |
| Zach Bruch | MyPrize.us | HI, ID, MI, MT, NV, WA |
| 10 Ten Gaming LLC. | Smiles Casino | ID, KY, MI, NV, WA |
| Blazesoft Ltd. | Fortune2Go | ID, LA, MI, MT, NV, WA |
| IGW Wild World LLC | WildWorld | CT, HI, ID, LA, NV, WA |
| Moshy Gaming LLC. | Moozi | ID, MI, NV, WA |
| Enigma Lake Holdings, Inc. | Zoot Casino | ID, LA, MI, ND, NE, NV, WA |
| MW Services Limited | GoldnLuck | ID, MI, NV, WA |
| Yotta Technologies Inc. | Yotta Casino | ID, LA, NV, WA |
| LGT Development LLC. | CosmoSlots | DE, MI, RI, WA |
| B-Two Operations Limited | Spin Blitz | AL, DE, GA, ID, KY, LA, MI, MT, NV, WA |
| N/A | BitBetWin Casino | WA |
| Funzone | CA, DE, NY, OH | |
| Rubystone Ventures LLC. | GoldSlips | ID, KY, WA |
| B-Two Operations Limited | Hello Millions | AL, CT, DE, GA, ID, KY, LA, MA, MD, MI, MS, MT, NJ, NV, NY, OH, WA, WV |
| GAN Social LLC | BananaBets | AL, AK, DC, MO, NM, SC |
| Blazesoft | Zula | GA, ID, MI, WA |
✅ States with sweepstake sites
The table below includes the current status in 50 U.S. states and Washington, D.C. This resource includes the approximate number of sweepstakes casinos operating and any restrictions on max wins in each state. Florida and New York have laws around max wins. As Matt Bain covers here, how the operator handles this differs depending on the site you are playing on.
Legend: ✅ (Available) ❌ Banned ❓(Status pending)
| State | Available | # of sites | Max prize |
|---|---|---|---|
| Alabama | ✅ | 22+ | No max |
| Alaska | ✅ | 60+ | No max |
| Arizona | ✅ | 60+ | No max |
| Arkansas | ✅ | 60+ | No max |
| California | ✅ | 60+ | No max |
| Colorado | ✅ | 60+ | No max |
| Connecticut | ❓ | 10+ | No max |
| Delaware | ❌ | 10+ | No max |
| Florida | ❓ | 60+ | $5,000 |
| Georgia | ✅ | 60+ | No max |
| Hawaii | ✅ | 15+ | No max |
| Idaho | ❌ (SC games not permitted) | 10+ (Gold Coins games only) | No max |
| Illinois | ✅ | 60+ | No max |
| Indiana | ✅ | 60+ | No max |
| Iowa | ✅ | 60+ | No max |
| Kansas | ✅ | 60+ | No max |
| Kentucky | ✅ | 20+ | No max |
| Louisiana | ✅ | 10+ | No max |
| Maine | ✅ | 60+ | No max |
| Maryland | ❓ | 60+ | No max |
| Massachusetts | ❓ | 60+ | No max |
| Michigan | ❌ | N/A | No max |
| Minnesota | ✅ | 60+ | No max |
| Mississippi | ❓ | 60+ | No max |
| Missouri | ✅ | 60+ | No max |
| Montana | ✅ | 15+ | No max |
| Nebraska | ✅ | 60+ | No max |
| Nevada | ✅ | 10+ | No max |
| New Hampshire | ✅ | 60+ | No max |
| New Jersey | ❓ | 10+ | No max |
| New Mexico | ✅ | 60+ | No max |
| New York | ❓ | 10+ | $5,000 |
| North Carolina | ✅ | 25+ | No max |
| North Dakota | ✅ | 60+ | No max |
| Ohio | ✅ | 20+ | No max |
| Oklahoma | ✅ | 60+ | No max |
| Oregon | ✅ | 60+ | No max |
| Pennsylvania | ✅ | 10+ | No max |
| Rhode Island | ✅ | 60+ | No max |
| South Carolina | ✅ | 60+ | No max |
| South Dakota | ✅ | 60+ | No max |
| Tennessee | ✅ | 60+ | No max |
| Texas | ✅ | 60+ | No max |
| Utah | ✅ | 30+ | No max |
| Vermont | ✅ | 60+ | No max |
| Virginia | ✅ | 60+ | No max |
| Washington | ❌ | N/A | No max |
| Washington D.C | ✅ | 60+ | No max |
| West Virginia | ❓ | 20+ | No max |
| Wisconsin | ✅ | 60+ | No max |
| Wyoming | ✅ | 20+ | No max |
🆓 How it works: The free entry model
The sweepstakes sites use a dual-currency system that includes Gold Coins (GC) and Sweeps Coins (SC). You’ll see these currencies called slightly different names at some sites, but the concept is identical across all sweepstakes casinos.
Gold Coins are play money currency, and you can only use GC in the play money games at a sweeps casino. Sweeps Coins are a virtual currency that you can use to play in the sweepstakes games at a casino. You can redeem the SC that you win in these games for cash prizes.
You can’t directly purchase SC at a sweeps casino. Under sweepstakes laws, players must be able to enter the sweepstakes offered at a site for free. Sweepstakes casinos fulfill this legal obligation by extending several different ways to obtain SC for free. The most popular method is writing letters to request free Sweeps Coins.
Learn more: How sweepstake casinos work
🏦 Tax implications on winnings
Federal gaming laws require players to pay income tax on sweepstakes wins of $5,000 or more. This could be a single win on a jackpot or bet that you redeem for $5,000 or more, or it could be your cumulative sweepstakes winnings for the year.
In addition to federal taxes, sweepstakes gaming wins could be subject to state taxes as well. State tax could be payable depending on which state you’re playing from and possibly which state you live (if the two are different).
When it comes to sweepstakes casino winnings, we highly recommend keeping track of your total wins and losses for the year. Consulting with a tax professional and disclosing all of that information is your best bet when it comes time to report winnings and fulfill tax obligations.