Last Update: 10 July 2025
While sweepstakes casinos remain active in many U.S. states, a growing number of jurisdictions have begun taking formal action to limit or eliminate their operations. These actions range from legislative bans to regulatory enforcement and cease-and-desist orders. This guide outlines which states have banned or restricted sweepstakes casinos as of mid-2025, and what that means for players and operators.
đź”´ States with Full Bans
Connecticut
Connecticut has enacted legislation that classifies sweepstakes casinos using prize redemption models as illegal gambling. Major platforms have exited the state following this legal development. The law treats such activity as professional gambling and applies both civil and criminal penalties to violators.
Montana
Montana passed a statewide ban on sweepstakes casinos that offer cash prizes through dual-currency models. The law takes effect October 1, 2025, and redefines these platforms as operating outside the boundaries of legal promotional gaming.
Washington
Washington has long treated sweepstakes-style platforms as illegal under its strict anti-online gambling stance. Any platform offering prize-based gaming resembling gambling is considered to be in violation of existing law and is not permitted to operate in the state.
Idaho
In Idaho, the use of redeemable virtual currency for prizes constitutes illegal gambling. Platforms operating with Sweeps Coins or similar mechanics are not permitted, and most major operators have already pulled out of the state.
🟡 States with Active Enforcement or Pending Bans
New York
New York has issued cease-and-desist letters to more than two dozen sweepstakes operators and is advancing legislation that would codify a statewide ban. Major platforms have begun limiting or halting access to New York residents as a result.
New Jersey
The New Jersey legislature has passed a bill that bans sweepstakes casino operations and increases taxes on licensed iGaming platforms. While awaiting the governor’s signature, the measure has already influenced operator behavior in the state.
Michigan
Michigan’s Gaming Control Board has issued cease-and-desist orders to multiple sweepstakes casinos. While no standalone bill has passed, enforcement under existing law is strong, and most operators have exited the market voluntarily.
Louisiana
Although a proposed sweepstakes ban was vetoed, the Louisiana Gaming Control Board issued 40 cease-and-desist orders in 2025. The Attorney General has taken the position that sweepstakes casinos violate existing gambling law and has moved forward with enforcement.
Nevada
While Nevada has not formally banned sweepstakes casinos, several operators have voluntarily exited the market following regulatory signals. The gaming environment in the state leaves little room for platforms that fall outside of licensed frameworks.
Maryland, Mississippi, Florida, Texas, and Arkansas
These states introduced legislation to ban or restrict sweepstakes casinos earlier in 2025. Although none of the bills passed before their respective legislative deadlines, they reflect growing political interest in regulating the space.
Other States Under Consideration
Additional states are currently reviewing bills or legal interpretations that could lead to bans. These include California, Ohio, Maine, and West Virginia, among others. While the outcome is still uncertain, operators should monitor these states closely as legal landscapes continue to shift.
Where Are Sweepstakes Casinos Still Legal?
Despite increasing restrictions, many U.S. states continue to allow sweepstakes casinos to operate. These states typically require platforms to follow promotional sweepstakes law, including offering a no-purchase-necessary path to participation and maintaining a clear separation between play-for-fun and prize redemption. To learn which states still permit access, visit our full guide: U.S. States Where Sweepstakes Casinos Are Legal.
Final Thoughts
Sweepstakes casinos are no longer flying under the radar. As more states begin enforcing bans or passing legislation to control the model, both players and platforms face a rapidly changing legal environment. In states like Connecticut and Montana, operations have already been shut down. In others, enforcement is ramping up through letters, regulatory action, and court challenges.
If you’re in a state listed above, check your local laws before playing. If you’re an operator, understand that compliance is no longer optional. The sweepstakes model is evolving—and the legal tolerance for skirting gambling regulations is wearing thin.