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Sweepstakes advocacy groups like the Social and Promotional Games Association and the Social Gaming Leadership Alliance have urged lawmakers in California to reconsider the proposed ban on sweepstakes casinos in the state. Under the proposed bill, AB 831, sweeps operators will no longer be able to operate in California, and the groups say that the legislation could push players to black market platforms that offer no consumer protections instead. A legislative effort to ban sweepstakes casinos in California is drawing sharp opposition from major industry groups, who argue the bill threatens legal digital games and favors powerful interests at the expense of consumers. Assembly Bill 831, introduced by Assemblymember Avelino Valencia, seeks to outlaw sweepstakes casino operators in the Golden State. The move has triggered a coordinated pushback from both the Social and Promotional Games Association and the Social Gaming Leadership Alliance, who accuse lawmakers of rushing the legislation through without proper input or analysis. Industry calls legislation unfair and misguided Sweepstakes operator VGW, known for running Chumba Casino and other platforms, helped form the SGLA to represent the interests of the social gaming industry across the United States. The group is led by former Congressman Jeff Duncan, who criticized the bill for lacking transparency and threatening consumer choice. "Many Californians play online games, but this rushed proposal, which subverts proper process, would abruptly cut them off from popular, free-to-play entertainment they love," said Duncan in a statement. "It was written by those involved in the gambling industry and introduced without providing the online social gaming industry any meaningful opportunity to engage." Duncan added that AB 831 could have broader implications for mainstream promotional sweepstakes, such as Reader's Digest contests as well as McDonald's Monopoly games. He also warned that banning legal sweepstakes platforms could inadvertently push consumers toward unregulated offshore alternatives, which offer no consumer protections. SPGA criticizes 'backroom ban' The Social and Promotional Games Association echoed SGLA's concerns, denouncing AB 831 as a 'backroom ban' inserted into unrelated legislation involving tribal gambling. A spokesperson for the SPGA said the move bypassed normal legislative scrutiny, including public debate and expert input. "This isn't how sound policy gets made," the SPGA said. "A last-minute effort to outlaw legal digital games, without public debate, expert input, or economic analysis, sends a chilling message to entrepreneurs, innovators, and investors across the state." The group also emphasized the bill's potential impact on large corporations that run promotional sweepstakes programs, including Microsoft, Marriott, and Starbucks. "California voters didn't sign on for backroom deals dictated by powerful political interests," the SPGA added. "With the state facing wildfires, a housing crisis, and a full federal assault on Californians' rights, it's astounding that any lawmaker would make banning mobile games a priority." Tribal governments support ban Despite opposition from the social gaming sector, the proposed ban enjoys strong support from tribal governments and organizations. The California Nations Indian Gaming Association has endorsed AB 831, citing the need to protect the state's voter-approved framework that gives tribes exclusive rights to operate gambling operations. "We support this legislation that will close dangerous loopholes and strengthen the integrity of California's gaming system," said Johnny Hernandez, Jr., vice chairperson of the Yuhaaviatam Tribal Council of San Manuel. The San Manuel Band of Mission Indians is one of the most prominent tribal gaming operators in California, contributing to the $25 billion tribal gambling industry that supports over 112,000 jobs in the state. "Together, Tribal governments and the State of California will continue to address and take decisive action against illegal internet gaming in all its forms," Hernandez added. Possible conflict of interest? The SPGA pointed out that San Manuel's Yaamava Resort & Casino currently operates its own social online casino, raising questions about potential conflicts of interest. Critics of AB 831 argue that such tribal operators want to eliminate perceived competition in the social gaming space while maintaining their own digital footholds. The California legislative session runs through September 12, though bills can carry over to the 2026 session. Both sides are expected to ramp up lobbying efforts in the coming months as the debate over the future of sweepstakes casinos in California intensifies.

The state of New York is on the verge of officially approving Senator Joseph Addabbo's proposed bill banning sweepstakes casinos from operating. The bill now awaits the signature of the governor, and it will make New York the fourth state to ban online sweeps casinos after Montana, Nevada, and more recently, Connecticut. New York is now just one signature away from becoming the fourth state this year to outlaw online sweepstakes casinos, following the unanimous passage of a sweeping bill in the state Assembly on Tuesday. The legislation, championed by Senator Joseph Addabbo, aims to ban dual-currency sweepstakes models frequently used by online casino-style platforms operating in legal gray zones. A smooth path through the legislature The bill, which had already advanced through the Senate with little opposition, was swapped in place of an identical version introduced in the Assembly by Assemblymember Carrie Woerner. Both bills sought to close loopholes that allow sweepstakes-based platforms to mimic real-money online gambling without state regulation or taxation. Addabbo's version had easily passed the Racing, Gaming, and Wagering Committee in the Senate, which he chairs, before moving to a full floor vote last week. In the Assembly, Woerner's version passed through several committees unchallenged before being replaced by Addabbo's for final passage. Assemblymember Jarrett Gandolfo was the only legislator to ask for clarification, focusing on the bill's targeting of dual-currency systems - one of the key features of sweepstakes casinos that allow users to exchange "sweeps coins" for cash prizes. Woerner assured lawmakers that common customer loyalty programs, like those from Starbucks or airlines, would not fall under the ban, explaining that those programs do not convert points into cash. Industry backlash grows Not everyone is pleased with the bill's trajectory. Industry groups such as the Social and Promotional Games Association and the Social Games Leadership Alliance swiftly voiced their opposition, warning that the legislation could have broader implications than intended. "This bill doesn't just target sweepstakes," said an SPGA spokesperson. "It sends a chilling message to anyone looking to invest in the next generation of gaming innovation. Nearly every form of online gaming we know today, including companies like FanDuel, began as pre-regulated concepts. This legislation criminalizes that innovation cycle." Jeff Duncan, Executive Director of the SGLA, echoed similar concerns. Legislators raised legitimate questions about enforcement, federal legal conflicts, and unintended effects on mainstream promotions. But those questions remain unanswered because the bill was rushed through, Duncan noted. "By blurring the line between lawful sweepstakes promotions and illegal gambling, this legislation threatens a vibrant digital-entertainment sector while offering players no safer alternatives." Legal pressure and national trends New York’s legislative action follows mounting legal scrutiny of sweepstakes gaming models across the country. On June 6, New York Attorney General Letitia James revealed her office had issued cease-and-desist letters to 26 operators for offering 'sweeps coins' to state residents. That legal development gave lawmakers additional justification for accelerating the bill's passage. Senator Addabbo also cited Connecticut's aggressive enforcement against sweepstakes operators, specifically the Department of Consumer Protection's decision to suspend High5Games and file over 1,000 criminal counts related to illegal gaming activity. Similar bans have already been signed into law this year in Montana, Nevada, and Connecticut. Major operators began withdrawing early Sensing the inevitable, some operators have already begun scaling back operations in New York. VGW, arguably the world's biggest sweepstakes gaming company and operator of Luckyland Slots, Chumba Casino, and Global Poker, reportedly initiated plans last month to remove its sweepstakes offerings from the New York market. That exit is expected to roll out gradually throughout the summer. Despite New York's forward momentum, proponents of sweepstakes gaming have notched a few recent wins elsewhere. In Louisiana, Governor Jeff Landry vetoed a bill that had passed unanimously in both legislative chambers. A similar effort in Maryland failed to move beyond committee stage. With the Assembly vote complete, the bill now awaits Governor Kathy Hochul’s signature. If signed into law, New York will join a growing list of states pushing back against online sweepstakes gaming - a trend that shows no sign of slowing.

Connecticut has now officially become the second state after Montana to ban sweepstakes operators after Governor Lamont signed the online sweepstakes casino ban, SB 1235, into law. The ban on sweepstakes operators will take effect on the 1st of October and is actually part of some broader changes in regulations and laws that are set to take place across the state. Connecticut has officially become the second state in 2025 to enact a ban on online sweepstakes casinos, as Governor Ned Lamont signed Senate Bill 1235 into law last Wednesday. The legislation, which includes a broad range of changes to gaming laws and regulations, will go into effect on the 1st of October. The measure aims to tighten oversight of gambling operations in the state by outlawing simulated gambling devices not tied to legitimate commercial activity. Connecticut joins Montana, which enacted a similar ban in May, in pushing back against the rise of online sweeps casinos that operate outside the state's licensed gaming ecosystem. A unanimous legislative push SB 1235 passed the Connecticut House with unanimous approval on June 3 before moving to the Senate for concurrence and eventually landing on Lamont's desk. The bill gained swift support amid growing concerns about consumer protection and the unregulated nature of sweepstakes-based gaming. While lawmakers emphasized player safeguards, the bill's quick passage has drawn criticism from some in the emerging sweeps gaming sector. The Social Gaming Leadership Alliance, a newly-formed industry advocacy group, expressed disappointment in a statement following the House vote. "This bill was hastily passed based on incomplete information with little attempt to engage with legitimate industry operators that prioritize player protections," said Jeff Duncan, the SGLA's Executive Director. "The result is a win for the black market, and other groups with vested interests that campaigned for this bill with falsehoods and misinformation. It is a loss for innovation, competition, free choice and potential benefits for the State of Connecticut." What the bill bans - and what it doesn't The new law specifically prohibits sweepstakes or promotional drawings that either do not involve the bona fide sale of goods or services, use simulated gambling devices, or facilitate participation in real or simulated sports wagering or online casino gaming without appropriate licensure under state law. Critics of the bill raised concerns it could unintentionally affect retail sweepstakes programs offered by grocery chains or major retailers. Legislators, however, included language to address that concern. Sweepstakes operated by retail grocery chains - defined as those with five or more locations where grocery sales are the primary business - remain legal as long as prizes cannot be redeemed for cash and only serve as discounts on purchases. A booming gaming economy Connecticut is one of only seven US states with regulated online casino gaming. According to the state's latest revenue reports, the first four months of 2025 have already brought in $34.4 million in state tax revenue from online casinos, marking a 31.6% increase over the same period in 2024. Legal sports betting also contributed $9.4 million in tax revenue, up nearly $1 million year-over-year. State officials maintain that the sweeps casino ban is meant to protect this growing revenue stream by ensuring only licensed and regulated platforms are permitted to operate in Connecticut. New sports betting rules for UConn fans The new legislation also includes provisions for sports bettors in Connecticut, particularly those who follow in-state college teams. Under SB 1235, residents will now be allowed to place bets on tournaments involving Connecticut schools - including powerhouse programs like UConn - provided the tournament features at least four teams and wagers are placed on the tournament as a whole, not individual games. This change opens the door for UConn basketball fans to back their teams in postseason play via operators like DraftKings, FanDuel, and Fanatics. Though the UConn men's bid for a historic NCAA 'three-peat' ended early in 2025, the women's team will begin the 2025-26 season as reigning national champions under legendary coach Geno Auriemma. While the ban on online sweepstakes casinos has drawn a mixed response, Connecticut lawmakers view it as a necessary step to safeguard consumers and maintain the integrity of the state's regulated gaming market. Whether other states follow suit - as New York inches closer with its own legislation - remains to be seen, but for now, Connecticut has drawn a firm line.

A warning to all users has been issued by the Maine Gambling Control Unit against all illegal and unregulated gambling apps and websites, including the controversial sweepstakes casino platforms. As everyone fully knows, online gambling is still illegal in the state of Maine, and the warning comes right after the NY Attorney General sent 26 cease and desist letters to sweepstakes casinos. Online gambling continues to evolve across the United States, but regulations vary drastically by state. In Maine, gambling regulators are taking a firm stance against certain online platforms. The Maine Gambling Control Unit has issued a public warning urging residents as well as visitors to avoid using illegal sweepstakes casinos and unlicensed gambling apps. "These sites may appear legitimate, but none are licensed or regulated by the state," said Milton Champion, executive director of the GCU within the Department of Public Safety. "No online casino, iGaming, or sweepstakes site is authorized to operate in Maine." The statement follows a growing national crackdown on sweepstakes-style gambling. Recently, New York's Attorney General sent cease and desist letters to 26 sweepstakes casinos, and Montana became the first state to officially ban sweepstakes gambling altogether. What's legal in Maine? Unlike many states with looser restrictions, Maine has drawn a clear legal boundary around online gambling. Currently, only three types of online betting are legal in the state: Online sports betting Fantasy sports contests Advance deposit betting for horse racing These activities are regulated under Maine law, with the GCU overseeing licensing and consumer protections to ensure fair play. Operators must adhere strictly to state regulations or risk legal action. Unregulated sites on the rise Despite these legal boundaries, the GCU has identified a troubling trend: unregulated websites and mobile apps that target Maine players. These platforms often masquerade as legitimate online casinos or sweepstakes games, but they operate outside of Maine's regulatory framework. A common example is Miss Cherry Fruits, a sweepstakes casino game accessible online. Like many similar platforms, sweepstakes casinos offer games that simulate traditional casino play - slots, roulette, blackjack - and often provide real-money payouts, gift cards, or prizes. Yet, these platforms are not licensed to operate in Maine and are not held accountable by the GCU or any state authority. Risks of using illegal gambling platforms Using unlicensed platforms carries significant risks. Without state oversight, there is no assurance that the games are fair or that user funds are secure. Should a player experience issues - such as account disputes, withheld winnings, or technical malfunctions - they have no legal recourse. The GCU emphasized that users participate in such activities entirely at their own risk. Consumers should be wary of platforms that are not explicitly licensed by Maine authorities. Other states grapple with sweepstakes regulation Maine isn't alone in confronting the complexities of sweepstakes casinos. States across the country are responding to the growing popularity - and associated risks - of these platforms. Louisiana, for example, is close to enacting a full ban. Senate Bill 181, aimed at eliminating sweepstakes gambling in the state, has already passed the Senate and is progressing through the House. Pennsylvania and New Jersey, which allow licensed online casinos, are also considering tighter rules to control unregulated sweepstakes platforms. As it stands, only seven US states have legalized real-money online casinos: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. This fragmented legal landscape makes it difficult for consumers to know what's legal, especially when traveling or accessing platforms that operate across state lines. Support for Responsible Gambling As part of its public awareness effort, the GCU is also highlighting the importance of responsible gambling. For those struggling with gambling addiction or concerns, the agency encourages seeking help through state and national resources. Assistance is available through the National Problem Gambling Helpline, the Maine Department of Health and Human Services, and the Maine Center for Disease Control and Prevention. Ultimately, Maine's gambling regulators stress the importance of caution when navigating online gaming platforms. Players are urged to verify the legitimacy of any site before engaging and to avoid platforms not licensed by the state.

Mere months after Connecticut brought criminal charges to its sweepstakes casino platform, the state of Connecticut has agreed to a settlement with High 5 Games. With the settlement, High 5 Games has agreed to pay a fine of almost $1.5 million, and the Connecticut Department of Consumer Protection has also agreed to reinstate High 5 Games' provider licence - but not for its sweepstakes casino, High 5 Casino. High 5 Games has regained its online gaming service provider license in Connecticut following a settlement with the state's Department of Consumer Protection. The agreement comes nearly three months after the company was hit with a summary suspension and criminal charges - the first of their kind in the US - over its operation of the unlicensed sweepstakes platform, High 5 Casino. As part of the settlement, High 5 Games will pay a $1.5 million fine and has agreed to discontinue High 5 Casino's availability across Connecticut. The settlement is not considered an admission of liability or a violation of law. While High 5 Games has been licensed in Connecticut since 2021 to supply content to regulated operators such as DraftKings and FanDuel, the company's separate sweepstakes platform, High 5 Casino, was operating without state approval. DCP investigation reveals sweeps violations The DCP's six-page Assurance of Voluntary Compliance, dated May 22, outlined how High 5 Games violated two state statutes by running the unlicensed casino for 25 months. During that time, more than 1,000 Connecticut customers deposited over $3.1 million into the platform. Though High 5 Games informed regulators in February of its intention to exit the state, investigators found that the casino remained accessible to users via simple geolocation workarounds. The platform's dual-currency model, a hallmark of sweepstakes operations, allowed users to collect free 'virtual coins' while also purchasing 'virtual cash' redeemable for real-money prizes - a structure that has drawn criticism from consumer protection advocates nationwide. Consumer restitution and compliance measures Under the settlement terms, High 5 Games will pay $643,000 in restitution to affected consumers and contribute nearly $800,000 toward consumer protection efforts, including education, complaint resolution, and enforcement. In addition to financial penalties, the company agreed to enhance geofencing technology to block users within Connecticut and to prevent access via VPNs and proxy servers. The agreement also prohibits the reintroduction of any sweepstakes platform in the state unless it complies with applicable licensing regulations. "This case is just one example of the hard work our gaming division does to ensure a fair, safe, and legal gaming market in Connecticut," said Commissioner Bryan Cafferelli. "We appreciate High 5 Games' cooperation in bringing this matter to a resolution." Wider legislative push against sweepstakes casinos Connecticut's action against High 5 Games has contributed to a growing national spotlight on sweepstakes casinos, which critics argue exploit regulatory loopholes. For instance, earlier last month, Montana became the first state to outright ban such platforms. In Louisiana, legislation aimed at closing the same loopholes has advanced to a third reading in the House of Representatives. Connecticut lawmakers are also responding swiftly. On 23 May, the Connecticut Senate unanimously passed a bill to prohibit unregulated sweepstakes casinos; the measure now awaits a vote in the House before the legislative session ends next week. The DCP's unprecedented move in March to bring criminal charges against a sweepstakes casino operator set a national precedent and sent a clear message to others in the sector. While High 5 Games has resumed its role as a licensed content supplier in Connecticut, the resolution of this case highlights growing regulatory momentum against unlicensed gambling operators. High 5 Games Chief Executive Officer Tony Singer has not publicly commented on the settlement. However, in a previous statement, the company said it was committed to cooperating with regulators and maintaining the integrity of its licenses.

Sweepstakes platform VGW – owner of LuckyLand Slots, Chumba Casino, and Global Poker – has announced that it is pulling out of New York, and it is a decision that it didn’t take lightly. Beginning on the 2nd of June, New York players will no longer be able to purchase Gold Coins, participate in contests, and the like. The remaining Sweeps Coins in players’ accounts can still be used until July 2, and on August 1, the redemption of Sweeps Coins will no longer be possible. In a significant move for the online social casino industry, VGW - the powerhouse behind Global Poker, Chumba Casino, and LuckyLand Slots - has announced it is phasing out its sweepstakes operations in New York. While the company will continue offering its free-to-play Gold Coin games, Sweeps Coin functionality is being systematically wound down over the coming months. Sweeps Coins to be discontinued starting June 2 VGW stated that New York players have already been notified of the decision via email. Beginning June 2, players will no longer be able to acquire Sweeps Coins through any means - including daily logins, contests, Gold Coin purchases, or mail-in entries. However, existing Sweeps Coin balances can still be used for gameplay until July 2. From July 2, gameplay using Sweeps Coins will be fully disabled, and any new mail-in requests will no longer be processed. By August 1, the ability to redeem any remaining Sweeps Coins for prizes will be permanently discontinued. A VGW spokesperson emphasized that players in New York will still have access to their favorite games using Gold Coins, which are entirely free-to-play and remain unaffected by the regulatory concerns driving the decision. “We are 100 percent focused on ensuring players are fully informed about the changes, and that this transition is as smooth and seamless as possible,” said the spokesperson. A decision made in the best interests of all stakeholders VGW acknowledged the significance of this decision, particularly for long-time players in New York. “We understand this is an adjustment after many years, and some players may be disappointed,” said the spokesperson. “This decision wasn’t taken lightly and was made at this time in the best interests of all our stakeholders.” This move reflects the company’s ongoing strategy to align with evolving expectations around regulatory compliance. In February, VGW raised its minimum player age from 18 to 21, citing a commitment to safe and responsible gaming. The New York exit follows that same philosophy. “VGW has operated in North America for more than a decade, creating not only great games, user experiences and entertainment but ensuring this is done safely, responsibly and at the highest level of standards,” the company said. Regulatory clouds prompt sweeps retreat VGW is not the first sweeps operator to leave the Empire State. Other major platforms, including High 5 Casino, McLuck, Hello Millions, and Funzpoints, have also exited the market in recent months. The trend coincides with increased legislative scrutiny. In March, Senator Joseph Addabbo introduced a bill to ban online sweepstakes casinos in New York. While that bill has seen little movement since April 30, and a duplicate Assembly Bill is only just entering committee on May 28, the industry has already begun to act preemptively. VGW is not a member of the Social and Promotional Games Association, which has advocated for regulatory clarity and held conversations with New York officials. However, the company is part of the newer Social Gaming Leadership Alliance, which shares similar goals around responsible growth and engagement with lawmakers. “As we’ve previously said, we acknowledge increased interest in our innovative industry that millions of Americans enjoy,” VGW said. “We are committed to respectful engagement on establishing modern, appropriate regulatory structures that benefit players and states alike.” Social gaming remains viable in New York More importantly, VGW’s Gold Coin-based social casino gaming will continue to be available to New York players. Unlike Sweeps Coins, which can be redeemed for real-world prizes, Gold Coins are purely for entertainment and fall outside the regulatory gray areas affecting sweepstakes promotions. Although New York has not yet enacted new laws restricting these platforms, VGW’s decision demonstrates a growing sense of caution and strategic foresight within the industry. For now, the departure of VGW - the largest and most recognized sweepstakes operator in the US - marks a pivotal moment. But one thing is clear: the industry is preparing for change, and VGW is intent on leading the transition with transparency and responsibility.

Well-known operators of social games have gathered together and formed a gaming alliance in response to the ongoing scrutiny into sweepstakes gaming operations. The group, called the Social Gaming Leadership Alliance, is set to push for more friendly rules and regulations in the social gaming industry. It is led by former congressman Jeff Duncan, and he is joined by major players like VGW (Virtual Gaming Worlds), Yellow Social Interactive, B-Two Operations, ARB Interactive, and PLAYSTUDIOS. A collective of prominent social gaming operators has come together to form the Social Gaming Leadership Alliance, a newly established advocacy group aimed at addressing mounting regulatory challenges and shaping a sustainable future for the industry. The coalition will be led by former US Congressman Jeff Duncan, and its founding members include Virtual Gaming Worlds (VGW), Yellow Social Interactive, PLAYSTUDIOS, B-Two Operations, and ARB Interactive, along with payment provider Nuvei. The SGLA marks a significant step for the social gaming industry as it seeks to better educate lawmakers, regulators, and the public about the nature of its platforms and practices. Promoting standards and clarifying misconceptions Laurence Escalante, Chief Executive Officer of VGW, emphasized the importance of unifying under one voice to promote transparency and industry best practices. “Online social gaming is a well-established, popular form of entertainment in North America, where we’ve operated for more than a decade,” said Escalante. “As a pioneer and market leader, we recognize the rising interest in our sector and our responsibility to both ensure the facts about our games, operations, and standards are understood and advocate for what we believe the appropriate industry frameworks should look like,” continued Escalante. The coalition aims to develop and promote clear, consistent industry standards to help lawmakers and regulators differentiate social gaming from other forms of online gambling. Core principles guide the SGLA's mission The SGLA will be grounded in four core principles: Free-to-play options - Ensuring players can enjoy games without spending money. Responsible Gaming - Promoting player well-being and sustainable gameplay practices. Player and platform protection - Upholding data privacy and ensuring secure, fair gameplay environments. Age Restrictions - Enforcing strict age verification processes to keep minors from accessing gaming content. By aligning on these values, the alliance hopes to present a united front when advocating for balanced regulations and preserving innovation in the sector. Response to mounting legal pressure The creation of the SGLA comes at a pivotal time for the social gaming industry, which has increasingly come under scrutiny from state regulators. VGW and several other sweepstakes operators have recently faced cease and desist orders in states such as Connecticut, Michigan, Idaho, Montana, Washington, and Nevada. In one high-profile development, VGW made the decision earlier this year to shut down its Global Poker brand in Nevada, citing increased regulatory pressure. Gold Coin sales were discontinued in January, and customer accounts were fully closed by mid-April. This climate of uncertainty has spurred leading operators to organize and present a coordinated effort to protect the viability of their businesses and the enjoyment of their users. Competing visions within the industry The SGLA’s formation also highlights a growing divergence within the social gaming sector. Another industry group, the Social and Promotional Gaming Association, was launched in September 2024 with a focus on opposing legislative efforts that seek to curtail sweepstakes and other social gaming models. While both groups aim to defend the social gaming space, their approaches and priorities appear to differ. The emergence of multiple advocacy organizations suggests an evolving and increasingly complex regulatory environment, as operators navigate differing interpretations of how social gaming should be governed. The SGLA plans to begin an outreach campaign targeting lawmakers, regulatory agencies, the media, and the general public, advocating for informed and balanced policy decisions that allow the industry to flourish while protecting consumers. With seasoned leadership and backing from influential stakeholders, the alliance hopes to shape the narrative around social gaming and prevent overly restrictive laws that could stifle innovation.

Governor Greg Gianforte of Montana has signed the bill seeking to ban sweepstakes casino operators in the state, making Montana the first-ever US state that officially prohibits sweepstakes casinos online. While Senate Bill 555 doesn't specifically state sweepstakes casinos, the bill seeks to ban casino operators that make use of dual currencies in gambling. Other states have introduced similar bills, but Montana is the very first state to sign it into law. Montana has officially become the first state in the nation to outlaw online sweepstakes casinos, following the signing of Senate Bill 555 by Governor Greg Gianforte. The new legislation, which goes into effect on October 1, prohibits internet gambling platforms that use dual-currency models - commonly associated with sweepstakes-style online casinos. While the bill does not explicitly mention "sweepstakes," it was crafted to target operators that allow users to place bets using one currency and redeem prizes in another - a hallmark of many online sweepstakes platforms. According to the bill's language, any online gambling operation that "knowingly transmits or receives gambling information" and "makes payouts of any form of currency" falls under the prohibition. Strict penalties for violators Under the new law, violators could face severe penalties, including felony charges, fines of as much as $50,000, and prison sentences of up to 10 years. The legislation underscores Montana's intent to draw a hard line against emerging forms of online gambling that operate in legal gray areas, especially those offering casino-style experiences under the guise of sweepstakes or promotional gaming. The House and Senate in Montana both passed SB 555 in April, setting the stage for Governor Gianforte's signature this week. While several states have introduced similar legislation, Montana is the first to see such a bill successfully enacted. Industry group denounces the bill's ambiguity The Social and Promotional Games Association, a trade group representing sweepstakes operators, has sharply criticized the new law. In a statement, an SPGA spokesperson argued that the bill's broad and ambiguous language could have far-reaching consequences beyond its intended targets. "Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans," the spokesperson said. "It's a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices." The SPGA further warned that the vague phrasing might inadvertently criminalize free-to-play sweepstakes and other promotional contests that do not involve real-money gambling. Broader legislative efforts struggle elsewhere Montana's move comes as other states deal with how to regulate or prohibit online sweepstakes casinos. Earlier in the year, the Senate of Mississippi became the first legislative body to pass a bill aimed at banning such platforms. However, that legislation ultimately failed in a conference committee amid broader discussions about legalizing online sports betting. Similarly, attempts to pass comparable bans in Florida, Arkansas, and Maryland also fell short. Despite the setbacks, several other states currently have active bills under consideration, reflecting growing concern over the legality and consumer protection issues surrounding online sweepstakes gambling. Montana's new law may serve as a catalyst for other states considering action against sweepstakes casinos. As these platforms continue to gain popularity - often marketed as legal alternatives to traditional online gambling - state lawmakers face increasing pressure to define and regulate their operations. The enactment of SB 555 marks a significant moment in the ongoing debate over how best to address the evolving landscape of online gambling. Whether other states follow Montana's lead remains to be seen, but the move has certainly reignited national attention on the legality and ethics of sweepstakes-based gaming.

In recent times, a lot of states in the US have initiated bans for sweepstakes casino platforms. While some states' bill proposals are still ongoing, some have already been rejected. We take a look at bills that are still active and find out what's happening with these bills in some key states, like New Jersey, New York, Connecticut, and more. In a year marked by legislative scrutiny of online sweepstakes platforms, US state lawmakers have introduced a wave of bills seeking to regulate or ban these dual-currency gaming operators. While several proposals have failed to gain traction and died in session, others remain active and are advancing through statehouses. The legislative movement stems from concerns around the legality, consumer protections, and perceived overlap between sweepstakes models and online gambling. However, recent trends show growing resistance to sweeping bans, particularly in states prioritizing innovation and economic freedom. Early setbacks in the south and mid-Atlantic Some states took swift action early in the legislative year, only to see efforts fizzle amid wider gaming debates. In Mississippi, for example, the Senate passed a bill banning sweepstakes operators. Yet the measure was ultimately derailed in a conference committee, tangled in the state's larger conversation around expanding online sports betting. Similarly, Florida's attempt to prohibit sweepstakes platforms ended in quiet withdrawal earlier this month. That move was welcomed by industry advocates like the Social and Promotional Games Association. "The defeat of these bills continues a clear national trend," said an SPGA spokesperson. "Lawmakers across the country are rejecting these anti-innovation, anti-business efforts that attempt to dictate what games American adults can play on their phones." The spokesperson also pointed to Maryland and Arkansas, where similar legislation failed to pass, indicating growing skepticism toward restrictive bills. A state-by-state look: where the action continues Despite setbacks in some regions, several states still have active legislation that could reshape the landscape for online sweepstakes platforms. Connecticut: Senate yet to vote In Connecticut, SB 1235 was introduced in February to prohibit both real and simulated online casino gaming or sports betting conducted via sweepstakes platforms. The bill has cleared several committee hurdles and is now awaiting a vote on the Senate floor. With the state's legislative session running until June 4, there is still time for further movement. Louisiana: unanimous Senate support Louisiana has made notable progress. The Senate passed SB 181 with a unanimous 39 - 0 vote. This bill seeks to expand the definition of 'gambling by computer' to include sweepstakes operators using dual-currency systems. It now moves to the House Committee on Administration of Criminal Justice. The legislative session continues until June 12, giving proponents a narrow window to finalize the bill. New Jersey: slow but active In New Jersey, Assembly Bill 5447 gained momentum after a dormant period. The Assembly's Tourism, Gaming and Arts Committee advanced the measure last week. A5447 targets platforms offering virtual currencies that yield real cash prizes, and it still requires approval from additional committees. Given the legislature remains in session until December 31, lawmakers have time to refine and debate the proposal. New York: Addabbo's bill advances New York legislators have also taken a strong interest. Senate Bill S5935, led by gaming advocate Sen. Joseph Addabbo, has already reached the Senate floor. A companion House bill, AB6745, remains in committee. Addabbo's bill includes an amendment granting the New York State Gaming Commission more authority to define what constitutes a sweepstakes system - potentially allowing for nuanced regulation over outright bans. New York's session ends on June 12. Montana: awaiting the signature of the Governor In Montana, lawmakers have already passed SB555, sending it to Governor Greg Gianforte's desk for approval. The bill avoids using the term 'sweepstakes' directly but amends gambling definitions to include any platform that transmits gambling information and allows wagers or payouts in any currency. Notably, it preserves legal standing for free-to-play casino models. A mixed national picture As legislative sessions near their end in several states, the fate of online sweepstakes bills remains uncertain. While many proposals have stalled or died, active measures in states like Louisiana, Connecticut, and New York suggest the debate is far from over. Industry advocates continue to push back against what they see as restrictive, anti-consumer laws. Meanwhile, state lawmakers are weighing how best to regulate a fast-evolving digital gaming sector without stifling innovation. The next few weeks will be critical in determining which states move toward prohibition - and which choose a more measured regulatory path.

Popular Scandinavian gaming provider Play'n GO has vowed never to supply its games to sweepstakes casinos, and it further confirms its commitment to promoting only regulated and licensed gaming markets worldwide. Swedish gaming powerhouse Play'n GO has made a strong and definitive statement regarding its business practices, as it vows never to supply its industry-leading portfolio of casino games to sweepstakes casinos. Johan Törnqvist, the company's Chief Executive Officer and Co-Founder, made the declaration, further demonstrating Play'n GO's unwavering commitment to operating strictly within regulated and licensed gaming markets worldwide. "Sweepstakes casinos do not operate inside a regulated framework, and that's not something we support," said Törnqvist. "Our commitment to regulated markets is absolute. We will never supply our games to sweepstakes casinos." The ever-growing regulatory scrutiny on sweepstakes casinos Sweepstakes casinos, often operating in legal grey areas by circumventing gambling laws through promotional and virtual currency models, have come under increasing scrutiny - especially across the United States. These platforms operate outside conventional regulatory frameworks, raising serious concerns among policymakers, regulators, and responsible gaming advocates. Shawn Fluharty, Play'n GO's Head of Government Affairs, voiced strong opposition to these unregulated entities. "Sweepstakes casinos threaten the regulated market model that many of us in the industry have worked so hard to achieve," he said. "That model protects players first and foremost and delivers much-needed revenue to jurisdictions." Fluharty further warned of long-term consequences for businesses engaging with unregulated markets: "Regulators have long memories. Anyone doing business with sweepstakes casinos today will find it very difficult to do business in a future regulated market." A history of ethical leadership This announcement is consistent with Play'n GO's longstanding position as a responsible and forward-thinking industry leader. The company has repeatedly taken proactive steps to align with evolving regulatory standards and promote industry integrity. For instance, Play'n GO was notably the first supplier to rule out the production of 'bonus buy' games - game titles that allow players to purchase features directly - long before such games were officially banned by Dutch and UK regulators. This stand has since become a benchmark in regulatory compliance and ethical game design, as several other jurisdictions consider similar restrictions. Backed by industry partners and policy advocates The company's recent strategic partnership with Tipico, a major German casino operator, demonstrates Play'n GO's commitment to clean, regulated markets. Through this alliance and partnership, Tipico has chosen to prioritize Play'n GO's games on its platforms while removing titles from providers that operate in both regulated and black markets. Chief Commercial Officer at Play'n GO, Magnus Olsson, acknowledged the financial implications of such decisions but emphasized the importance of long-term integrity. "It's no secret that with this decision - much like with our stance towards Bonus Buy games - we have been, and continue to leave a lot of money on the table," said Olsson. "But everyone in the industry has a choice about what kind of industry we want. We want to see a fully regulated and sustainable industry that protects players, promotes innovation, and ensures that we actually have an industry in the future." A call to action for industry peers Play'n GO's bold move serves as both a commitment and a challenge to others in the gaming industry. With increasing momentum toward tighter regulation and more ethical business models, the company is urging fellow suppliers and operators to take a stand for sustainability and player protection. "We are starting to see both regulators and operators, such as with Tipico in Germany, recognize that the future of the industry is through regulation," said Olsson. "It's time for other suppliers to do their part too - and I'm delighted to see Play'n GO leading the way once again."

Sweepstakes casino operators continue to take a hit in the US as more and more states seek to prohibit their operations - and this now includes a lawsuit involving VGW, the entity behind sweepstakes casinos like Chumba Casino, Luckyland, and Global Poker. In the lawsuit, a third defendant was brought in last month: Ryan Seacrest, the popular American Idol emcee and TV personality, who is also a Chumba Casino spokesperson. A popular California sweepstakes operator is facing heightened legal scrutiny - this time with a celebrity twist. Television host and personality Ryan Seacrest has been named as a defendant in an amended lawsuit against VGW, the parent company of well-known sweepstakes sites including Chumba Casino, Luckyland Casino, and Global Poker. The lawsuit, brought by California resident Aubrey Carillo, was originally recorded in October of 2024 in Riverside County Superior Court. Initially focused solely on VGW, the suit was revised last month to include Seacrest, who serves as a prominent spokesperson for Chumba Casino. The revised complaint significantly expanded in scope, growing from 16 to 71 pages, and deepened its legal arguments against both the operator and its celebrity endorser. Suit alleges illegal gambling under state law At the core of Carillo's claim is the allegation that VGW's sweepstakes-based gaming products operate as illicit online casinos within the state of California. The lawsuit draws a direct comparison between VGW's platforms and the internet cafes that proliferated in the early 2000s. These cafes offered phone cards or paid internet access along with bonus credits that could be used to play slot-like games - a model that California lawmakers later deemed unlawful gambling. Carillo argues that the model used by VGW's platforms is functionally identical, contending that the purchase of virtual currency or other entry methods does not eliminate the element of 'consideration,' a key component in determining what constitutes gambling under state law. The complaint claims VGW has effectively revived the outlawed business model in digital form. Celebrity endorsement draws fire The revised complaint singles out Ryan Seacrest for allegedly helping to legitimize and promote an unlawful business through his celebrity endorsement. In a pointed statement within the filing, Carillo accuses Seacrest of leveraging his fame irresponsibly: "Someone this blessed in life does not need to hurt people for more money, but Defendant Seacrest does that by serving as the official celebrity endorser for ChumbaCasino.com. Defendant Seacrest promotes illegal gambling and in so doing, contributes to the rise of online gambling addiction among adults and adolescents." The suit claims that Seacrest's influence and promotion of Chumba Casino contribute to a growing trend of online gambling addiction, particularly among vulnerable populations. Challenge to binding arbitration In addition to targeting VGW and Seacrest, the lawsuit disputes the enforceability of the sites' terms and conditions - specifically, their use of mandatory arbitration clauses. Carillo argues that because the underlying business model is potentially illegal, the user agreements and any clauses within them, including arbitration, are therefore unenforceable - and void - under California law. This aspect of the suit could have wider implications as mandatory arbitration is a common legal shield for many online platforms facing user complaints. Part of a legal trend While Seacrest is the very first celebrity to be named in such a lawsuit, he is not the first third party to be pulled into the growing legal battles surrounding sweepstakes gaming platforms. Other ongoing lawsuits have targeted payment processors like Worldpay and major technology companies such as Google and Apple, alleging that these firms facilitate access to illegal gambling. To date, no court has issued a final ruling holding these companies liable. However, most cases - including Carillo's - remain active and could set significant legal precedents in the coming months. As the pressure mounts, the outcome of this lawsuit may influence how sweepstakes-based gaming is treated nationwide - and it could also determine the liability of public figures and tech platforms involved in their promotion.