As more states place sweepstakes casinos under closer scrutiny, some online sweepstakes operators have already made their exit from certain states. Hello Millions and McLuck have exited the states of West Virginia and Maryland, and three other sweeps casinos have pulled out of Maryland as well, namely Mega Bonanza, Spree, and Jackpota.

The exodus of online sweepstakes casinos from West Virginia and Maryland continues, as regulatory scrutiny intensifies against the controversial gaming vertical. Leading brands like Hello Millions and McLuck have now added both states to their growing list of restricted territories, while three additional platforms - Spree, Mega Bonanza, and Jackpota - have officially ceased operations in Maryland as of February 21. These five brands now block users from a minimum of 12 US states.

The recent departures align with growing regulatory pressure in both states, as lawmakers and enforcement agencies take decisive action against online sweepstakes casinos. Maryland, in particular, is considering an outright ban, while West Virginia's Attorney General is reportedly investigating the industry's operations.

Maryland lawmakers push for ban following cease-and-desist orders

Senator Paul Corderman from Maryland has introduced Senate Bill 860 (SB860), which explicitly seeks to prohibit sweepstakes casinos. The bill defines these platforms as online gaming sites that employ a dual-currency system - one that utilizes both free and real money - mimicking the experience of traditional online casinos or lottery-style gaming. If passed, SB860 would criminalize not only sweepstakes operators but also service providers that support these platforms.

SB860 is set for a committee hearing on the 5th of March, with its House counterpart, House Bill 1140, scheduled for discussion the following day. The bill was introduced following a series of cease-and-desist letters issued by the gaming regulator of Maryland to several unauthorized online gambling operators, which included some offering sweepstakes-based gaming products.

The Maryland Lottery and Gaming Control Agency has confirmed that it issued a cease-and-desist order to McLuck but has not publicly disclosed enforcement actions against the other four brands that recently exited the state.

West Virginia investigates sweepstakes operators

On the other hand, West Virginia Attorney General JB McCuskey is reportedly leading a probe into the operations of multiple sweepstakes casinos. While specific details remain undisclosed, industry sources suggest subpoenas have been issued to several sweepstakes gaming companies as part of an ongoing investigation.

Mega Bonanza, one of the recently withdrawn brands, confirmed in a statement that it has ceased operations in Maryland but did not provide additional details regarding its decision or its standing in West Virginia. The state's regulatory authority has not yet commented on whether further enforcement actions are forthcoming.

Industry-wide retreat from US markets

The sweepstakes casino sector has been facing increased legal scrutiny across the US, leading to multiple market withdrawals beyond Maryland and West Virginia.

Just last week, High 5 Games, a major online gaming entity, announced it would shut down its operations in six states that currently have legal online casino gaming, which includes West Virginia. Similarly, Stake.US has also recently exited the Mountain State and several other jurisdictions.

Beyond these two states, the national outlook for sweepstakes casinos remains uncertain. Mississippi recently became the first state legislative body to approve a full ban on online sweepstakes gaming. Meanwhile, in New Jersey, lawmakers are exploring an alternative approach - proposing to regulate sweepstakes casinos under a framework similar to online casino gaming and sports betting.

What's next for sweepstakes gaming?

With mounting regulatory pressure, it is unclear how many more states will move to restrict or ban online sweepstakes casinos in the coming months. The industry, which has long operated in a legal gray area, is now facing an increasing number of legal challenges that could reshape its future in the US market.

For Maryland and West Virginia players who relied on these platforms for entertainment, the closures mark yet another shift in the rapidly evolving gaming arena. As legislative efforts and enforcement actions continue, the industry will closely monitor how these developments impact the wider regulatory environment for online gaming across the nation.