The Growing Wave of Bans
Six states have now banned or restricted sweepstakes casinos, and more are actively drafting legislation. Here's the current picture.
As of May 2026: 6+ states have banned or heavily restricted sweepstakes casinos. Active legislation is pending in Florida, Oklahoma, Tennessee, Virginia, Iowa, and Mississippi.
States That Have Banned Sweepstakes Casinos
California— AB831 — Effective January 1, 2026
Largest market loss — ~20% of industry US revenue
New York— State legislation — Effective Late 2025
Major market, significant revenue impact
Indiana— State legislation — Effective 2026
First state to ban in the current legislative cycle
Maine— State legislation — Effective 2026
Smaller market but strong opposition to model
Montana— SB 555 — Effective October 1, 2025
Bans unlicensed internet-based gaming models
Michigan— State gaming authority — Effective Ongoing
Regulated online casino market; sweeps models restricted
Why Are States Banning Them?
The primary reasons states are moving to ban sweepstakes casinos:
- ▸Tribal gaming lobbies view sweepstakes casinos as unlicensed competition
- ▸State regulators argue the model too closely mirrors real-money gambling
- ▸Consumer protection concerns around the ease of purchasing Gold Coins
- ▸Loss of potential tax revenue since sweepstakes casinos don't pay gambling taxes
Which States Are Next?
Active legislation targeting sweepstakes casinos is currently advancing in: Florida, Oklahoma, Tennessee, Virginia, Iowa, and Mississippi. Players in these states should enjoy access while they can and monitor local news.
For Players
Always check your state's current legal status before signing up for any sweepstakes casino. Our States Legal page is updated regularly with the latest availability information.