The sweepstakes gambling industry is under fire — and insiders say the momentum is finally shifting against it.
What started as a fringe legal workaround is now seen as a major threat to the regulated casino industry. Billions of dollars are flowing through unlicensed sweepstakes platforms, prompting a wave of state-level enforcement and legislation.
In Louisiana, the Gaming Control Board just issued 40 cease-and-desist letters to sweepstakes and offshore gambling operators. This follows Governor Jeff Landry’s recent veto of a sweepstakes ban bill—he argued the state already had the tools to go after illegal gambling. Tuesday’s mass crackdown proved the point.
Meanwhile, New York has officially joined Nevada, Montana, and Connecticut in banning online sweepstakes casinos. Connecticut went a step further, suspending High5Games’ license and bringing over 1,000 criminal charges tied to illegal gambling.
“Black Tuesday” for Sweepstakes Operators
Glaser described this week as a “Black Tuesday” for unregulated operators. “In just one year, 16 states have launched cease-and-desist orders, introduced bans, or taken regulatory action,” he said. “That’s a massive shift in how this market is being viewed.”
One of the key concerns: consumers often can’t tell the difference between regulated and unregulated platforms. That confusion puts legitimate tribal and state-backed gaming at risk—and opens the door to fraud, abuse, and uncollected taxes.
Glaser warned that even investors and operators misjudged the risk: “The money was fast, the legal advice was thin, and now the cracks are showing.”
Legal Pressure Mounts
Regulators and state attorneys general are pushing hard. In Connecticut and elsewhere, the threat of legal battles has already prompted some companies to pull out voluntarily.
“The second a ban is signed into law, it’s game over,” York said. “Operators know they can’t win in court.”
None of the major sweepstakes platforms have launched legal challenges against states so far—an indicator that the legal footing may be weaker than previously thought.
What’s Next: California and Beyond
While states like New York and Louisiana lead the charge, pressure is mounting in California. Legislation targeting sweepstakes casinos will soon be introduced there.
Meanwhile, tribal groups are also turning attention to prediction markets like Kalshi, which are seeking legitimacy under federal commodities regulations. 65 tribal nations and 34 states have filed amicus briefs challenging Kalshi’s model, arguing it mirrors sports betting and threatens state control.
Bottom Line
The sweepstakes industry, long seen as untouchable, is finally being forced to retreat. Coordinated action by states, tribal nations, and federal players is beginning to close the legal loopholes—and sweepstakes casinos are running out of room to operate.
Stay tuned to bansweepstakes.com for the latest legal actions, site bans, and legislative battles shaping the future of sweepstakes gambling in the U.S.
Read the original source article on CDC Gaming.