The ultimate guide to social casinos

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.