In December 2025, the regulatory landscape for dual-currency sweepstakes casinos has become increasingly challenging, with New York Governor Kathy Hochul officially signing a bill last week that bans these operators within the state. The legislation follows a surge of regulatory actions throughout the US, as lawmakers in Florida, Indiana, and Maine also introduced bills aimed at prohibiting these casinos, potentially severing them from a significant portion of their American customer base.
The bill signed by Governor Hochul last Friday marks a decisive step in the legal process that began earlier this year when New York legislators approved the measure aiming to curb what is seen by many as unregulated gambling. This regulatory push drove numerous sites to exit New York following cease-and-desist notices from Attorney General Letitia James. A report by Eilers & Krejcik for the Social Gaming Leadership Alliance highlighted that in 2024, sweepstakes casinos amassed $10 billion in sales, with New York contributing $762 million to this figure.
The momentum against sweepstakes casinos is not confined to New York. This month, lawmakers in Florida, Indiana, and Maine have all proposed similar bans. Their efforts form part of a broader national initiative, with states like California, Connecticut, Montana, Nevada, and New Jersey having already enacted similar bans this year. This crackdown is set to accelerate as 2026 approaches.
In Florida, Representative Berny Jacques has introduced a comprehensive 86-page bill, House Bill 591, in preparation for the 2026 legislative session. This bill seeks to reinforce the Seminole tribe’s exclusive gambling rights in the state, categorizing the operation or promotion of internet gambling as a third-degree felony. A previous attempt to pass a similar ban in Florida during 2025 was unsuccessful. According to E&K estimates, the Florida market represents 8.5% of sweepstakes operator revenue in 2025, translating to over $1 billion in sales. The Social Gaming Leadership Alliance, however, has voiced its opposition, arguing that these games should not be likened to illegal offshore gambling.
“Florida’s intentions to halt illegal gambling are commendable,” expressed Jeff Duncan, executive director of the SGLA, “but it overlooks how lawful promotional sweepstakes function within the state.”
In Maine, Senator Craig Hickman introduced LD 2007, a bill that proposes banning sweepstakes casinos and imposing fines up to $100,000 on operators. This legislative move follows a consumer warning issued by Milton Champion, the executive director of the Maine Gambling Control Unit, which labeled sweepstakes casinos as unregulated gambling.
Representative Ethan Manning of Indiana also stepped into the fray with House Bill 1052. This proposal seeks to define the scope of sweepstakes games, setting civil and criminal penalties, and outlines precise conditions for the sale and distribution of tobacco and electronic cigarettes.
The ongoing debate around sweepstakes casinos has made them a significant target throughout 2025. Despite six state bans being signed by governors this year, Louisiana Governor Jeff Landry chose not to endorse a similar proposal, indicating that existing state gambling laws were sufficient for regulators to enforce. Consequently, the Louisiana Gambling Control Board issued 40 cease-and-desist letters to operators engaged in illegal gambling activities, including those offering sweepstakes casinos.
While Mississippi and Maryland did not pass new bans, their regulators still issued cease-and-desist letters. This pattern was repeated by regulators in Arizona, Delaware, Michigan, Minnesota, Pennsylvania, Tennessee, and West Virginia, with the latter’s attorney general also issuing subpoenas to operators.
Amid these US-centric challenges, sweepstakes behemoth VGW decided to withdraw from the Canadian market this year, with plans to intensify its focus on the US. A VGW spokesperson noted that the Canadian market constituted a minor portion of their business compared to the US, where they aim to concentrate their resources and investments.
“Regulatory concerns in Canada did not drive our decision,” clarified the spokesperson, emphasizing VGW’s commitment to the US market’s larger player base.
Sweeping regulatory changes like these are reshaping the landscape for sweepstakes casinos, inciting significant discussions about the balance between regulation and operation freedom. While proponents of the bans argue they protect consumers from unregulated gambling, opponents believe they misinterpret the nature of social gaming and sweepstakes, potentially stifling innovation and consumer choice in the industry. The coming year will likely see these debates intensify as the legislative and regulatory environment continues to evolve.
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