US sweepstakes bans: Next states likely to prohibit dual-currency gambling
States across the nation have initiated anti-sweepstakes action in recent months, with social casinos ousted from some of the most populous US regions.
In May, Montana became the first state to prohibit sweepstakes betting through Senate Bill 555. This was followed by similar motions in California, Nevada, Connecticut, Louisiana and New York.
Last week, New Jersey passed a bill to ban both online and retail dual-currency gambling operators.
As more states take action against sweepstakes platforms, it is now appropriate to analyze which jurisdictions will ban or regulate the social casino industry next.
Why sweepstakes are under fire
Unlike traditional online and land-based casinos, sweepstakes operate a dual-currency system. This is generally divided between two coins, known as ‘gold coins’ and ‘sweeps coins’.
Gold coins are non-withdrawable and solely utilized for entertainment purposes. As a result, players cannot earn tangible cash prizes while using gold coins.
However, sweeps coins serve as the money-making route – and players can attain this type of currency by purchasing certain on-site packages or participating in select programs. Once sweeps coins have been credited to a player’s account, those virtual funds may be exchanged for real cash.
As neither of these currency options demands a direct purchase in order for individuals to play, sweepstakes operators sit in a legal gray area.
Laws in most states define gambling as a paid service, a random-outcome service that rewards cash prizes.
By steering away from the ‘paid’ element, sweepstakes do not fall in line with this definition. Until now, most states have tolerated this means of operation.
Recent revelations have unveiled a hostile sentiment towards sweepstakes casinos from legislators, with many states likely to enforce new regulations on dual-currency gambling soon.
States most likely to ban or regulate sweepstakes casinos in 2025
New legislative maneuvers against sweepstakes casinos are being submitted throughout the US – and the following states are most likely to nail down anti-social casino measures next.
New Jersey
A brand-new motion, titled Bill A5447, was passed by both of New Jersey’s legislative chambers at the end of June. This bill frames online and in-person sweepstakes casinos as illegal forms of gambling.
The Garden State has stood as a leader in the domestic sweepstakes scene – and a bill pushing for a regulated social casino industry over an outright ban was put forth in the lead-up to this proposal’s success.
Governor Phil Murphy will now decide whether to veto the bill, as urged by the Social and Promotional Games Association (SPGA), or sign it into law.
Maine
Lawmakers in Maine are on the cusp of integrating legal online casino gambling for the first time, as Bill LD1164 awaits Governor Janet Mills’ signature.
While this bill does not specifically outlaw sweepstakes gambling, the existence of a regulated iGaming market may force legislators to consider banning social casino platforms.
There is precedent for anti-sweepstakes measures within the Pine Tree State, too. In June, the Maine Gambling Control Unit issued a public warning to those who use sweepstake sites.
A statement from the organization’s executive director, Milton Champion, expressed that sweepstakes casinos are not licensed, nor are they authorized to operate in the region.
Although Champion is correct to say that sweepstakes are not authorized to serve Maine players, these platforms are equally not barred from providing dual-currency gambling content.
Therefore, lawmakers may look to tighten restrictions on sweepstakes operators once Bill LD1164 is signed by Governor Mills.
Arizona
The Arizona Department of Gaming (ADG) has recently taken aim at sweepstakes casinos by issuing several cease-and-desists to platform operators.
In what the ADG dubs “decisive enforcement”, seven warnings were communicated to social casino sites.
Among those cease-and-desist recipients was Stake.us – a firm that has been in the spotlight due to controversial business practices in various states.
It is not the first time the ADG has targeted sweepstakes casinos. Now, the authority’s director, Jackie Johnson, has underlined that “illegal gambling has no place in Arizona.”
According to the ADG’s in-house policy, any gambling operations not disclosed by the state’s law are deemed illegal.
This could very well be disputed in court – so legislators supportive of the state’s gambling regulator will likely seek to twist the knife on sweepstakes casinos soon.
Louisiana
In the spring, Louisiana appeared certain to establish strict laws against sweepstakes casinos through Senate Bill 181.
Despite passing both legislative chambers, Governor Jeff Landry vetoed the motion in June.
Citing “overly broad” language and the potential for new regulations to “impede” current enforcement operations, Governor Landry stated that the proposal was simply unnecessary.
However, this unusual decision does not spell complete freedom for sweepstakes casinos – as Louisiana’s authorities shall remain steadfast in issuing cease-and-desist orders against what Governor Landry has called “bad actors”.
Appetite for a concise ban on sweepstakes platforms still holds strong in the Pelican State. If a more suitable motion is put forward – a very real possibility – then Governor Landry may welcome the move.
Mississippi
Like Louisiana, Mississippi came within touching distance of prohibiting sweepstakes casinos during May.
Initially warmly received by the state’s Senate, notable changes were added to SB2510 between February’s introduction and May’s reevaluation.
Rather than only bringing the hammer down on sweepstakes platforms, the revamped motion now included measures against online sports betting. Legislators disliked this new proposal – and the bill died at the start of May.
It marked a noticeable setback for a bill that had previously passed February’s voting sessions 51-0.
Nevertheless, the state’s desire to outlaw sweepstakes operators has not waned. In June, the Mississippi Gaming Commission issued cease-and-desists to 10 social casino platforms.
All things considered, the potential for a sweepstakes ban in the coming months unfortunately lives on.
Anti-sweepstakes trend to continue through the year
A collective effort to banish sweepstakes casino gaming from the US has gathered significant momentum in 2025 – and there is little to indicate a slowing of this national sentiment.
Montana got the ball rolling earlier this year, as Montana became the first state to ban sweeptstakes; while California’s AB 831 could see the nation’s most populous state expunge social casinos from the region, as the Californinan bill vows to “crush the industry”, should the motion pass.
Movements in Maine, Louisiana and Mississippi could also enter the picture before the year is out – so it’s worth keeping tabs on local legislative action in your area.
