There are now eight U.S. states with active legislation targeting online sweepstakes operators, online gaming platforms that allow players to win cash prizes without placing real-money wagers.
Sweeps offer players a chance to participate in online casino games and win prizes using a promotional sweepstakes model. Instead of real money, they use a virtual currency, typically Gold Coins (GC) and Sweeps Coins (SC).
As of April 2025, the eight states include:
- Arkansas
- Connecticut
- Florida
- Maryland
- Mississippi
- Nevada
- New Jersey
- New York
Arkansas’ Anti-Sweepstakes Bill Stalled Out
A bill to legalize online casino gaming platforms and ban sweepstakes gaming in Arkansas failed to advance out of an initial committee hearing Tuesday. Any measure must pass through both the full House and Senate by April 11.
Although Senate Bill 524 was withdrawn by the author on March 20, House Bill 1861 would still classify sweepstakes gaming as illegal gambling and allow the state’s three licensed casinos — Oaklawn Racing Casino Resort Hotel, Saracen Casino Resort, and Southland Casino Hotel — to offer online casino gaming.
A potential fourth retail casino filed a lawsuit aiming to overturn a 2024 ballot measure that banned it from opening. The fourth casino, which would be located in Pope County, could have an online sportsbook as well.
Connecticut Voted To Ban Sweepstakes Gaming
The Connecticut Senate’s General Law Committee unanimously passed S.B. 1235 by a vote of 22-0 in late March. The bill was filed with the Legislation Commissioner’s Office.
According to the Connecticut General Assembly, the bill would ban sweepstakes gaming operators and prohibit lottery ticket resales and ticket courier services in the Constitution State.
SB 1235 states that “certain persons conducting sweepstakes or promotional drawings shall not allow or facilitate participation in certain real or simulated online casino gaming or sports wagering.”
Florida Could Harshen Penalties For iGaming
Members of the Florida Senate’s Regulated Industries Committee met March 25 and reported an amended version of Republican Sen. Corey Simon’s S.B. 1404 by an 8-0 vote.
The bill proposes stricter penalties for illegal gambling operators, including making it a third-degree felony to operate or promote wagering on an event knowing the results “are prearranged or predetermined.”
S.B. 1404 would also make “Internet gambling” and “Internet sports wagering” a misdemeanor offense for bettors. The measure calls for “an outstanding declaratory statement” to avoid misleading bettors as well.
The bill’s definition of internet gambling is playing a game “in which money or other thing of value” is won by chance and simulates “casino-style gaming,” such as slot machines and table games.
Simon, who played eight seasons in the NFL as a defensive lineman, told the committee the bill would make it a third-degree felony to operate a gambling house.
Is There Still Hope In Mississippi?
Mississippi Sen. Joey Fillingane’s S.B. 2510 died earlier this week since Monday was the deadline for conference committee reports. Fillingane’s bill would have increased criminal penalties for offering illegal online gambling in the state while also banning online sweepstakes gaming.
In February, the Mississippi Senate became the first chamber in the U.S. to pass a bill banning sweepstakes casinos. House Representatives then amended it in early March to include online sports betting language. However, the Senate rejected it for the sports betting language.
The House provisions in S.B. 2510 included a 12% tax and up to two licenses per retail casino. The bill also would have established the Mobile Sports Wagering Tax Fund, which would have directed $6 million per annum until 2030 to support small retail casinos.
Unless a new anti-sweepstakes proposal is presented this year, residents will be able to continue playing sweeps games legally in the Magnolia State. That is unless, of course, the state regulators go after said sweeps operators via cease-and-desist letters.
States Continue To Crack Down On Illegal Operators
Furthermore, lawmakers and regulators in states like Michigan and New York are doing everything in their power to force out sweepstakes operators and other offshore platforms.
Earlier this week, the Michigan Gaming Control Board (MGCB) issued cease-and-desist letters to offshore operators Lucky Tiger Casino and Rich Palms Casino for conducting illegal gambling activities in the Wolverine State.
An MGCB investigation found that the online casinos, operated by Alistair Solutions NV located in Curaçao, offer real-money gambling games such as slot machines, table games, and video poker to players in Michigan.
“The Michigan Gaming Control Board will continue to make it clear that any operator found to be operating unlawfully will face appropriate consequences,” MGCB Executive Director Henry Williams said.
“This agency has zero tolerance for illegal gambling. We will continue to exercise our regulatory oversight and authority to protect the interests of Michigan citizens and licensed operators and ensure that all online gambling activities available here are compliant with the law.”
Additionally, after New York lawmakers introduced S.B. S9226 to ban online sweepstakes gaming, six sweeps operators — Hello Millions, High 5 Casino, SportsMillions, PlayFame, SpinBlitz, and Rolling Riches — each announced plans to leave the Empire State.
Introduced by Sen. Joseph Addabbo, the bill demands that violating operators receive fines as high as $100,000 and license losses. The bill also grants authority to the New York State Gaming Commission and the Attorney General to enforce penalties against violators.