Sweepstakes Casino Bans: Every US State Law in 2026

A wave of 2025-26 state legislation has reshaped the sweepstakes casino industry, with seven states enacting explicit laws banning or restricting the dual-currency model that lets players redeem Sweeps Coins for cash prizes. Several additional states have not passed standalone statutes but have effectively closed their markets to sweepstakes operators through existing gaming law enforcement. This tracker summarizes the current legal landscape state by state, based on enacted bills and regulatory actions reported to date.

Which States Have Banned Sweepstakes Casinos?

California enacted AB 831, codified at Penal Code Section 337o, banning the dual-currency online sweepstakes casino model and extending liability to payment processors, suppliers, and affiliates. Governor Newsom signed the bill on October 11, 2025, and it took effect January 1, 2026, carrying fines of $1,000 to $25,000. Major sweepstakes operators no longer accept California players.

New York banned dual-currency redemption sweepstakes casinos under S5935A, now Chapter 605, which Governor Hochul signed December 5, 2025. Gold-coin-only social casino play remains legal in the state. Penalties range from $10,000 to $100,000 per offense, and operators exited New York upon the bill's signing.

New Jersey outlawed the sweepstakes model of wagering under A5447, signed by Governor Murphy on August 15, 2025. The law targets casino-style games tied to promotional or virtual-currency entries and imposes penalties reaching $100,000 for a first offense. It took effect immediately upon signing.

Connecticut's SB 1235, enacted as Public Act 25-112, bans operating or promoting online sweepstakes not tied to a bona fide sale of goods or services, classifying violations as a Class D felony. Governor Lamont signed the bill in 2025, and it took effect October 1, 2025. The state's Department of Consumer Protection has since issued cease-and-desist orders to operators.

Montana was the first state to enact an explicit statutory ban on the gold-coin/sweeps-coin model. Governor Gianforte signed SB 555 on May 12, 2025, and the law took effect October 1, 2025, with penalties reaching 10 years in prison and fines up to $50,000.

Indiana's Governor Braun signed HB 1052, enacted as House Enrolled Act 1052, in mid-March 2026. The law outlaws online games that simulate casino, lottery, or sports betting through a dual- or multi-currency redemption system. Civil penalties can reach $100,000 per violation, and the law took effect July 1, 2026.

Maine's Governor Mills signed LD 2007 on April 6, 2026, making it illegal to operate or promote dual-currency online sweepstakes casino games. Civil penalties of $10,000 to $100,000 per violation are directed toward funding gambling-addiction treatment. The law took effect in mid-July 2026.

States Where Operators Don't Serve Players

Michigan has not passed a standalone sweepstakes statute, but the Michigan Gaming Control Board treats the gold-coin/sweeps-coin model as unlicensed gaming under MCL Chapter 432. The board has issued repeated rounds of cease-and-desist letters, and as a result, sweepstakes operators do not serve Michigan residents.

Nevada has no law specific to dual-currency sweepstakes casinos, but the state regulates gambling broadly under NRS Chapter 463. In 2025, Nevada strengthened penalties for unlicensed gambling operators through SB 256. Major sweepstakes casino operators exclude Nevada residents from their platforms.

Idaho has not introduced new sweepstakes-specific legislation, but its state constitutional prohibition on gambling, combined with the broad statutory definition in Idaho Code Section 18-3801, is read by operators to cover the dual-currency redemption model. As a result, operators voluntarily exclude Idaho residents.

What This Means for Players

The laws described above generally target the dual-currency redemption structure, meaning platforms that let players convert a secondary currency such as Sweeps Coins into cash or cash-equivalent prizes. In most of these states, gold-coin-only social casino play, where games are enjoyed for entertainment without any cash redemption, is not the direct target of these statutes and often remains available, though platform availability varies by operator and may change as companies adjust their compliance posture.

Players in any state should not assume that a platform's presence or absence reflects the full legal picture. Laws are subject to amendment, enforcement priorities can shift, and operators sometimes exit or reenter markets ahead of or in response to regulatory action. Anyone considering a sweepstakes casino platform should verify the current status of the law in their home state and confirm which currencies or game modes, if any, are affected before playing.

This article is general information intended for US sweepstakes-casino players and does not constitute legal advice. Laws referenced here reflect enacted bills and reported regulatory actions as described in available data, and readers should consult official state statutes, gaming authority guidance, or a qualified attorney for the most current and applicable legal information in their jurisdiction.