The sweepstakes casino business model has become increasingly popular in the US lately and many states have started taking action against it. We have seen loads of attempts to “contain” these sites, including suggestions to ban them completely. Some states have made more progress than others in this department, and this article covers all the latest bills, bans, and everything else you should know.
Iowa became one of the latest states to take action against sweepstakes casinos after passing Senate File 2289. Instead of banning these sites, however, the local authorities decided to empower the Iowa Racing and Gaming Commission. As a result, the latter can now take action against operators it believes are not operating legally in the state.
Lawmakers decided to adopt this approach because many of the sweepstakes casinos are not entirely illegal. Some operate in the gray area, so by not banning them outright, lawmakers give them a better chance of keeping their businesses.
Sadly, the new uncertainty is not good for sweepstakes casinos in Iowa, as many of them are unsure what to do. The state follow the trend across other places around the USA, so who knows, there might be a full ban soon.
Governor Bill Lee approved SB 2136 on May 22 and signed it into law. As a result, Tennessee has officially become one of the states that have banned online sweepstakes. This decision comes after the legislature approved this ban earlier in April 2026. The new regulations classify sweepstakes casinos as things that use the dual-currency systems and it also gives a definition to other options like slots, video poker and bingo, among others.
Under the new rules, running illegal sweepstakes can constitute a violation of the Tennessee Consumer Protection Act. This will allow authorities to issue fines and even take legal action and the state’s Attorney General will have greater investigative powers.
Alongside that, a new law makes prediction market manipulation a criminal offense. People who intentionally influence the outcome of an event can be charged with a Class E felony., This makes Tennessee among the first states in the U.S. to ban this specific type of market manipulation.
Kevin Stitt, Oklahoma’s Governor, vetoed Senate Bill 1589, which would have given the state more control over online casino-style games and dual-currency sweepstakes operators. This decision surprised some of us because the SB1589 moved through the Legislature easily.
It all started in March, when the Senate approved it by a 48-0 vote. After that, the new legislation also passed the House and then it reached the Governor. It seems he was not happy with the new legislation, as he vetoed it on May 7.
Following the decision, Oklahoma’s lawmakers can reverse the veto until May 29. Assuming they don’t do that, the SB 1589 will not get into power, and Oklahoma will be among the states that will not ban sweepstakes casinos.
An interesting fact is that the veto comes after the Senate rejected the idea of legalizing sports betting. After this decision, the state remains one of the few in the U.S. without legal sports betting.
The first news comes from Louisiana, and it reveals that the state has joined several others and will try to ban Sweeps Coins gameplay at sweepstakes casinos. This comes following the submission of House Bill 883, which changes the definition of illegal online gambling. The new change also includes the model of sweepstakes casinos and is another nail in the coffin, following the June 2025 cease-and-desist order.
Following the actions last year, Louisiana pushed way more than 40 offshore and sweepstakes gambling sites. There aren’t that many companies left on the local market, but it seems lawmakers want to make sure everyone is gone for good.
Alongside House Bill 883, people also saw House Bill 53, which adds different gambling-related offenses. One of the proposed changes will basically put sweepstakes casinos under racketeering laws.
Assuming these two House Bills become law, Louisiana will become the most restrictive state toward sweepstakes casinos in the USA.
Read more in our guide to Luisiana sweepstakes casinos
People residing in Maine learned that their state has become the second one to outlaw sweepstakes casinos in 2026, at least for now. The 2007 Legislative Document, which went into effect on April 6, put Maine alongside Indiana. Sweepstakes casinos will now have 90 days until the law comes into effect and will have to remove the Sweeps Coin gameplay option from their platforms.
LD2007 explains to people who want to play online games for free how sweepstakes casinos work, focusing on the two types of virtual currency they use. The document defines “direct consideration” as currency users buy or receive in-game use. It also defines the “indirect consideration” as free currency, but it still has real value because people can redeem it for prizes and this is what targets Sweeps Coins. Another idea behind the bill is to prevent platforms from encouraging users to purchase non-redeemable coins just to receive redeemable bonus coins.
What’s interesting is that many gambling business owners were not happy with the new bill. According to them, companies that follow the law will simply stop operating, leaving locals with no choice but to use illegal operators. They also claim that the new bill will do nothing to generate revenue for the state.
The new legislature will take effect in July, meaning many of the big sweepstakes casinos will most likely leave the state before then.
Lawmakers in Minnesota seem to be determined to shut down sweepstakes casinos for good. This became clear following the Senate File 4474, which will basically outlaw dual-currency games that look similar to sports betting and casinos. Senators John Marty, Jordan Rasmusson, Matt Klein and Erin Maye Quade are behind the idea. Assuming the new law becomes a reality, promoting sweepstakes casinos will be a felony.
That’s not the only new bill, because there is also the Senate Full 4511, which targets prediction markets. The goal behind this one is to ensure that they can’t offer trade on sports and various political events.
In case you did not know, the Senate File 4474, which targets sweepstakes casinos, is an addition to the cease-and-desist letters from before. Thanks to Attorney General Keith Ellison, 14 unregulated operators stopped providing services in Minnesota. The Senate File expands this regulatory power and can deny licenses if an operator’s revenue is related to sweepstakes.
Alongside all that, Minnesota’s lawmakers also voted to move House File 4410 to the Public Safety Committee. This house file targets the dual-currency gaming mode that sweepstakes casinos operate under. The new law will basically prohibit a person in the state (or a company) from operating such dual-currency sites or even promoting them.
It’s no surprise that the House File 4410 received a lot of support, especially from the Director of the Minnesota Indian Gaming Association. He said that these gaming platforms are unregulated and report billions in earnings. With that said, he also noted that normal sweepstakes or social operators that do not use dual currency and casino games should still be allowed.
It seems like Maryland lawmakers are reconsidering a bill to crack down on illegal online gambling and sweepstakes casinos. They believe these sites are essentially using the dual-currency model and avoiding any regulation.
Jeff Waldstreicher and Chris West are behind the proposal and it would give the Maryland Lottery and Gaming Control Agency more power. It will be able to issue cease-and-desist orders, freeze accounts and fine violators. What’s more, the agency will be able to go after the payment processors and different partners of these sites, not just the sites themselves. This is good news for the agency because it has reported that it needs more authority in order to be effective.
The important thing is that the new bill targets unregulated gambling sites. It excludes the legal sports betting and fantasy sports platforms, so users don’t need to worry about them getting away.
Keep in mind that the Maryland Senate was among the first in the U.S. to pass a sweepstakes prohibition bill. The bad news for it was that it fell short and ultimately died in the House committee during the last session. Although Maryland failed to pass the bill, other states like California, New Jersey and New York succeeded.
Ohio was among the states considering a ban on sweepstakes casinos. However, it seems the proposal is still on hold because state lawmakers decided not to act on House Bill 298. This means you can still check the highest sweepstakes casinos rated there and pick the one you like best.
As of 2026, Ohio remains one of the key markets for sweepstakes casinos. Given that it’s among the most populous states in the country, sweepstakes operators focus heavily on it because it’s also among the few major jurisdictions where these sites can operate legally.
The fact that lawmakers decided not to move forward with HBN 298 shows that they are open to dialogue. However, it also shows that there’s always a risk of a future ban. The class action lawsuit against Crown Coins casinos definitely adds fuel to the potential ban and shows that there is regulatory pressure on these operators.
Assuming such a ban becomes a reality, many Ohio residents are likely to focus on offshore platforms. These companies lack consumer protections and responsible gambling tools and put players at great risk.
Washington, DC might be on the verge of joining several other US states in outlawing dual-currency operators and legalizing online casinos. The so-called Council Bill 260656 (also known as the Internet Gaming and Consumer Protection Act of 2026) was filed on April 9. Wendell Felder is behind it, and the bill is already with the Committee on Human Services, with a hearing scheduled for April 21.
If the new bill passes, it will also legalize iGaming there. Companies wishing to operate in this jurisdiction will have to pay a 25% tax on their GGR and be ready to pay $2M for a license valid for 5 years. After that, companies will be able to renew their permit for a fee of $500,000.
The CB260656 will task the Office of Lottery and Gaming with regulating iGaming. There won’t be a limit on the number of licenses, but operators who already have a sports betting license will have some advantages. Also, the minimum age required to use these sites will be set to 21.
As mentioned, CB260656 will also ban the sweepstakes casino. In fact, the bill extends beyond the famous dual-currency model by also outlawing the potential subscription model. The Office of Lottery and Gaming will be able to issue the cease-and-desist orders to sweep operators. On the other hand, the Attorney General can take sweep operators to court and even seize profits when it becomes clear they’ve been operating unlawfully in DC.
Originally, the Tennessee HB1885 would follow the example of many other states and focus on banning sweepstakes casinos. However, the state shifted from its original idea and will instead study regulation, taxation and the potential state revenue from online games.
This is the first bill of its kind, and it’s awaiting a hearing before the House Finance Committee, which is scheduled for April 14. The goal of the study is to estimate the potential revenue that Tennessee can generate if these sites are taxed and regulated. It may not seem special, but this is the first state to take this approach rather than banning the operator right away.
It’s no surprise that many people in the state are welcoming the changes. In fact, the Social Gaming Leadership Alliance estimated that the industry could generate close to $25M in annual tax revenue.
Assuming the potential study proves successful, it would be very interesting to see whether other states follow suit. There have been various economic studies in places like Virginia and Pennsylvania that show states can generate significant revenue if they legalize and regulate these operators. We will just have to wait and see whether this will become a reality.
It seems like Oklahoma is one step closer to becoming the third U.S. state to ban sweepstakes casinos in 2026. Senate Bill 1589 quickly passed through the House Criminal Judiciary Committee and is about to take effect. It categorizes dual-currency gaming at sweepstakes casinos as illegal gambling.
Following the quick vote, SB 1589 will have to go through another committee before the full House vote. The 2026 legislative session ends on May 29, leaving about a month and a half for the bill to become a reality.
Assuming it comes to power, companies not affiliated with the Indian Gaming Regulatory Act will be prohibited from operating. This will put Oklahoma alongside Indiana and Maine.
It seems like we are on the verge of witnessing a new sweeps model that ties revenue to subscriptions. The new model first became available on a site called Thrillaroo, which is a subscription-based casino-style platform.
But how does it actually work? Well, the site has two main modes you can choose from – Thrill Mode and Chill Mode. The latter uses Chill Points, which are its virtual currency, and it means you can play for free. Unlike traditional Gold Coins, however, these never end, so you can always play with them.
Those wishing to test Thrill Mode will discover that it uses Thrill Tokens, which users must purchase. This makes them very different from Sweeps Coins because sweepstakes casinos usually do not allow people to purchase them directly. Users will quickly discover that the Thrill Tokens carry monetary value and players can redeem their balances like on a real gaming platform.
This is where the subscription model comes into play. People with a paid membership can access the Win Win Guarantee, which is added to Thrill Mode. Once the subscription period is over, the site will compare your total wagers with winnings. If you have lost more than you won, Thrillaroo will return the difference. In other words, you only lose the subscription fee.
The innovative platform is currently available in NY and CA and its membership starts from $29.99 for a week. You can also subscribe for $99.99 for 30 days or $289.99 for 90 days.
