The Sweepstakes Casino Crackdown: What US Players Need to Know in 2026

The sweepstakes casino model that allowed millions of Americans to legally play casino-style games in states without regulated online gambling is being dismantled state by state at a pace nobody in the industry predicted even twelve months ago.

In May 2025, Montana became the first state to pass an explicit ban. Connecticut and New Jersey followed within months. California, by far the biggest blow, banned dual-currency sweepstakes casinos under Assembly Bill 831, signed by Governor Gavin Newsom on October 11, 2025, and effective January 1, 2026. California alone accounted for roughly 20% of the entire US sweepstakes casino market. New York, Nevada, Indiana, Maine, Iowa, Oklahoma, and Mississippi have all enacted bans or restrictions since. Idaho, Michigan, and Washington enforce existing gambling laws against sweepstakes operators without needing new legislation.

As of June 2026, sweepstakes casinos are banned or heavily restricted in at least 13 states, with at least 27 more considering additional legislation. Industry analysts now project that by the end of 2026, a majority of US states will have some form of sweepstakes casin...