Dozens of Sweepstakes Casinos Exit as US States Tighten Regulations

Five States Take the Lead

Since Montana’s ban in May, New York, New Jersey, Connecticut, and Nevada have all followed with their own crackdowns. Collectively, these five states have pushed more than 50 platforms out of the market, according to a CasinoBeats review of operator terms.

New Jersey, the latest to enforce a ban, has already seen nearly 40 exits, and that number is expected to rise as more platforms update their terms of service. Interestingly, Nevada hasn’t technically banned sweepstakes casinos outright. Instead, it passed a law granting regulators the power to prosecute and fine unlicensed operators targeting its residents.

California could soon join this list. A proposed ban has advanced to the Senate floor, though lawmakers face a looming deadline: September 12 marks the end of the 2025 legislative session.

Other States Pile on Pressure

Outside the five bans, several states are flexing their regulatory muscle. Louisiana’s Legislature passed a ban earlier this year, only for Governor Jeff Landry to veto it. Even so, the state’s Gaming Control Board moved swiftly, targeting 40 offshore and sweepstakes casinos.

The ripple effect has been significant. Over 40 platforms—including household names like Chumba, High5 Casino, Stake.us, and McLuck—have stopped operating in Louisiana.

West Virginia’s Attorney General has taken an aggressive stance, issuing 47 subpoenas that prompted 26 operators to leave, among them Pulsz and NoLimitCoins. Delaware, too, has seen at least 34 casinos, including LuckyLand Slots and Chumba, withdraw from the state.

Other notable departures include:

• Maryland: At least 21 exits, including WOW Vegas, Modo, and Lucky Stake.
• Alabama: At least 12 operators left, such as Funrize and Fliff.
• Arizona: At least 8 withdrawals, with Stake and Carnival Citi among them.

Runaways Defying the Bans

Despite mounting enforcement, some platforms are refusing to step aside. Luckybird, Crown Coins, Rebet, Spinfinite, Speed Sweeps, and Casino Click continue to operate in New York and Connecticut.

In New Jersey, platforms like Vegas Gems, Lonestar, Rolla, and The Money Factory are still accessible, despite the state’s explicit prohibition. Even established names such as Chumba Casino and Funzpoints have come under fire for maintaining access in restricted markets.

While most operators amend their terms to reflect new exclusions, these defiant platforms highlight just how fragmented enforcement remains. Regulators may be tightening the rules, but compliance is far from universal.

Outlook for the Industry

With bans spreading and enforcement strengthening, the sweepstakes casino landscape in the US is shrinking fast. New York, Connecticut, and Nevada each report more than 50 operators exiting. Secondary states like Louisiana and Delaware are also chalking up victories through regulatory oversight.

Yet the persistence of non-compliant operators underlines the ongoing challenge. In a market with little federal coordination, patchwork enforcement leaves gaps that ambitious platforms are all too willing to exploit. The next chapter will likely be defined by whether regulators can close these loopholes—or whether runaways continue to test the limits.