As sweepstakes gaming growth continues, 3 US states pull back
The United States is seeing a significant growth in sweepstakes casinos, but despite or in part informed by that, multiple US states are trying to ban or restrict sweeps.
The legalization of online casinos is helping many states to increase spending potential through local tax revenues, bettering state economies and creating new opportunities for community development. Despite the financial benefits of online casinos spaces including sweeps, several US states are pushing for a more restrictive model for gambling and betting. Some, such as the state of New York, are even attempting more extreme measures that may see sweeps play prohibited entirely at the state level.
Indiana, New York, and Maine push to ban sweeps
Idaho, Michigan, and Washington are among the US states where sweeps have already been banned or faced significant restrictions in operating, and now New York has joined those states, as Governor Kathy Hochul signed a bill that was in limbo since June to make the ban official. The bill completely bans platforms that use gold or sweep coins that can be converted into real money, which is the crux of sweepstakes gaming. It doesn’t penalize just the operators either, as game suppliers and other entities involved in sweeps could also be targeted.
Those found in violation can face fines ranging from $10,000 to $100,000 for each offense, as well as a loss of the offender’s gaming license and a potential ineligibility to apply for a new license.
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Indiana lawmakers have proposed a bill seeking to ban sweepstakes casinos, but that law hasn’t passed just yet. State regulators are actively trying to ban both sweeps and sports betting platforms that use a dual-currency system to replicate real gambling. This system also refers to coins that are won as rewards in sweepstakes and can eventually be converted into real money.
If passed, the bill would completely prohibit sweeps statewide and issue penalties of up to $100,000 on operators. Unlike similar bills in some other US states, entities linked to sweepstakes operators wouldn’t face legal repercussions.
Maine is in the same boat as Indiana, as lawmakers attempt to pass a bill that would ban sweeps in the state. The state’s Gambling Control Unit has publicly taken a stance against online sweepstakes sites. Maine’s Social and Promotional Games Association (SPGA) has criticized this push for a complete ban, arguing that sweeps aren’t deserving of the treatment.
This follows on the heels of Google taking action by reclassifying sweeps as gambling rather than social games.
Sweepstakes casino operators continues to thrive despite US state restrictions
The sweepstakes casino market in the US has experienced a massive surge in the last five years despite restrictions and bans by some US states. The market was valued at $460 million in 2019, and increased to roughly $4.2 billion by 2024 while being expected to rise to approximately $6.9 billion by the end of 2025. There are around 200 sweeps platforms operating in the US, with more continuing to launch.
The American Gaming Association (AGA) reports that, according to its data, 90% of players consider sweeps gambling, and 68% primarily play sweeps to win real money.
Google’s reclassification of sweeps and the tighter regulations by some states have prompted some in the industry to even push for a rebrand to social plus to avoid associations sweeps may now carry.
Feature image credit: Canva
Khizar Mundia has been playing video games for as long as he can recall. Things have come a long way since the many days he spent playing the original NES, though. He now covers a variety of competitive games and esports, as well as the world of streaming, ranging from Twitch to Kick. If it’s of interest to gamers, it’s of interest to Khizar.
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