Illustration: SweepstakeReport

news desk · 2026-09-01 · maintained as events land

The sweepstakes casino crackdown: a dated timeline

In eighteen months, the dual-currency casino went from a legal gray zone to a model banned or restricted by a dozen states, sued by two attorneys general, and rewritten in operators' own terms as they retreat state by state. Here is the record, dated, with primary sources.

By Kyle Lewis, Editor

News timeline, published September 1, 2026, maintained as events land. Sources are primary where available: statutes, bill records, regulator releases, and court filings; press coverage is used, and labeled, where a primary document was not directly retrievable.

Disclosure: this site's publisher, Luck Incorporated LLC, operates Chance Infinite, a free-entry sweepstakes app that competes for some of the same players; we cover the sweepstakes-casino category as its documented critic, and our factual claims here are attributed to the officials and documents that made them. Full disclosure in the footer. This page is not legal advice.

The laws: twelve states and counting

State Law Signed Effective Core of it
MontanaSB 555May 23, 2025Oct 1, 2025First state ban; dual-currency online casinos defined as prohibited internet gambling
NevadaSB 256Jun 5, 2025Oct 1, 2025Felony penalties and disgorgement for unlicensed operators, sweeps sites included; passed unanimously
ConnecticutPA 25-112Jun 12, 2025Oct 1, 2025Prohibits sweepstakes casinos and simulated gambling; illegal gambling a Class D felony
New JerseyA5447Aug 15, 2025ImmediatelyOutlaws the sweepstakes model of wagering; penalties to $25,000 per violation for continued operation after a cease-and-desist
CaliforniaAB 831 (Ch. 623)Oct 11, 2025Jan 1, 2026Bans dual-currency online sweepstakes games; misdemeanor, fines to $25,000; players exempt
New YorkS5935A (Ch. 605)Dec 5, 2025ImmediatelyBans dual-currency games mimicking casino, sports, lottery, or bingo; fines $10,000 to $100,000
IndianaHB 1052Mar 12, 2026Jul 1, 2026Bans dual-currency sweeps simulating casino or lottery; civil penalties to $100,000
MaineLD 2007Apr 6, 20262026 (see note)Dual-currency sweeps treated as unlawful gambling; fines $10,000 to $100,000
OklahomaSB 1589Veto overridden May 15, 2026Nov 1, 2026Enacted over the governor's veto; dual-currency sweeps pulled into the criminal gambling code
LouisianaHB 53 + HB 883May 11 and 15, 2026Aug 1, 2026Illegal gambling added to racketeering law; dual-currency sweeps illegal, fines to $100,000; the governor had vetoed a similar bill in 2025
IowaSF 2289May 15, 2026Jul 1, 2026Regulator gains cease-and-desist and injunction powers over unlicensed operators including sweeps
TennesseeSB 2136 / HB 1885May 22, 20262026 (see note)Operating or supporting online sweepstakes games made a Consumer Protection Act violation, codifying the AG's December 2025 campaign

Notes: Maine's and Tennessee's effective dates were not pinned to a primary source on our research date and are left unstated. Bills also failed or died in Mississippi (2025 and 2026), Maryland (2025 and 2026), Florida, Hawaii, Massachusetts, Minnesota, and Virginia, and Louisiana's 2025 attempt was vetoed before 2026's reversal; a Washington, D.C. bill was pending as of mid-2026. The failed-bill tally is compiled from legislative trackers and trade-press coverage; unlike the enacted-law table above, we have not pulled each bill file.

The enforcement wave

Regulators moved before and between the statutes. Michigan's Gaming Control Board has run the longest campaign, from 2023 letters to VGW's LuckyLand and Stake.us through repeated waves of orders in 2025, per its own releases; those waves target unlicensed gambling sites broadly, with sweepstakes brands among the recipients. New York's Attorney General announced cease-and-desist letters to 26 platforms on June 6, 2025, including Chumba, LuckyLand, Global Poker, McLuck, and Fortune Coins, and stated all 26 stopped selling sweeps coins in the state. Illinois followed on February 4 and 5, 2026 with 65 letters issued with the Attorney General; we retrieved the individual letters to Stake.us, Fortune Coins, and LuckyLand Slots from the Gaming Board's own site. Tennessee's Attorney General announced letters to nearly 40 platforms on December 29, 2025, stating the model is an illegal lottery under the state constitution and that recipients disabled or agreed to wind down. Arizona's Department of Gaming issued rolling cease-and-desists through 2025 and into 2026; Louisiana's Gaming Control Board sent more than 40 in mid-2025, per press reports of the board's actions, alongside an Attorney General opinion that dual-currency platforms were operating in violation of state law; Mississippi's commission named 10 operators in a June 2025 public notice; West Virginia's Attorney General issued 47 investigative subpoenas beginning February 2025, after which more than 20 platforms quietly left the state, per trade coverage; Maryland's regulator ordered VGW out in March 2025 and again in November, per press coverage of the orders.

The courtroom

The verdict that echoes loudest came from Washington State: in February 2025, a federal jury in Larsen v. PTT, LLC, the High 5 Games case, awarded roughly $24.9 million to a class of players, following a 2024 summary judgment that the apps violated Washington's gambling-loss recovery and consumer-protection laws; trade press describe it as the first jury verdict against an online social casino. The settled record includes VGW's $11.75 million Kentucky class settlement (Armstead, Henderson Circuit Court, approved 2023, with the operator denying wrongdoing) and Yellow Social Interactive's $1.32 million Kentucky settlement (Whiting, same court, final approval hearing December 2023). The pending record grew heavier in 2026: Kentucky's Attorney General sued VGW on June 17, 2026 in Franklin Circuit Court, seeking a shutdown and recovery of player losses, per the complaint as filed; Florida's Attorney General sued Stake.us and VGW brands on August 19, 2026 in Hillsborough County, naming payment processors as defendants, per press coverage of the filings; and the City of Baltimore sued major operators in March 2026, also per press coverage of the filings. A federal class action in New Jersey (Bargo v. Apple, Inc. et al., D.N.J., No. 2:24-cv-10805, detailed in our McLuck profile) has named Apple and Google alongside operators since late 2024. Operators have wins too: VGW obtained dismissal of three Georgia class actions on jurisdictional and arbitration grounds, per trade-press coverage of the rulings, and several suits against operators have been compelled to arbitration under the class-action waivers in their terms.

The platforms and the industry

Google reclassified sweepstakes casinos out of its social-casino ads category on October 28, 2025, placing them under its online-gambling policy with licensing and certification requirements, per its policy change log as reported. A July 13, 2026 announcement extended that certification regime to all categories under the policy effective September 14, 2026, per Google's policy pages; our explainer covers what the wall closes. We found no verified, announced Apple policy change targeting the category, and we say so rather than repeat the rumor. The industry consolidated its defense: two trade groups launched in 2024 and 2025 and merged in September 2025, the SPGA folding into the Social Gaming Leadership Alliance per the groups' own announcements, arguing the products are lawful promotional sweepstakes; two governors, Louisiana's in 2025 and Oklahoma's in 2026, made overbreadth or redundancy arguments in veto messages, and both states nonetheless have laws today, one by the governor's own later signature and one by override.

What the fight is actually about

The legal question is consideration, the element that separates a lawful sweepstakes from a lottery, as laid out on our definitions page. States argue the sweeps currency is distributed overwhelmingly as a bonus on coin purchases, making the purchase disguised consideration; that is the theory in Kentucky's 2026 complaint and Tennessee's constitutional position. Washington's courts reached player-recovery results by a different route, treating virtual chips as a thing of value under state law. The newest statutes mostly skip the element-by-element debate and define dual-currency casino-style games as prohibited outright. Operators answer that no purchase is necessary, pointing to free daily grants and postal or online entry requests, and that the purchasable currency is entertainment-only; that defense has not yet been tested to a merits verdict in most of these new suits. We do not referee that question. We rank apps where it never arises, because nothing is for sale: that list is here, and the named casino profiles, built from the operators' own documents, are on the casinos page.

A year and a half ago the dual-currency casino operated in all but a handful of states. Today twelve states have laws against the model, two attorneys general have live lawsuits, the category's largest operator by most industry accounts is closing one of its flagship brands, and the exclusion lists in the operators' own terms read like a map of the retreat. Whatever the courts ultimately decide about consideration, the direction of the record is not ambiguous, and this page will keep the dates as they land.

Related: The casinos, by name · Definitions · Why we exclude the category · What we rank instead