US Sweepstakes Casino State Laws (April 2026): Movers and Shakers

US Sweepstakes Casino State Laws (April 2026): Movers and Shakers

The future of sweepstakes casinos in the U.S. appears rocky, with a handful of states set to ban the free-to-play gaming platforms in 2026. We take a look at the key states that have banned sweepstakes casino sites amid the ongoing war on dual-currency operators. 

At a Glance: 

  • Maine's governor is the latest to sign a sweepstakes casino ban
  • Louisiana classes sweepstakes as “racketeering” in landmark move
  • Indiana sweepstakes casino ban to arrive in July
  • Minnesota warns offshore casinos and sweepstakes sites
  • Bans fail to take hold in Florida and Virginia

Maine governor finalizes sweepstakes ban

Maine Gov. Janet Mills signed legislation in early April to ban online sweepstakes in the Pine Tree State. The lightning move surprised some, with lawmakers only approving the measure on April 2. 

LD2007 — An Act Regarding the Prohibition of Online Sweepstakes Games — sought to clarify that operating online sweepstakes games constituted “unlawful gambling” under the Maine Criminal Code. 

Additionally, fines of up to $100,000 per offense against operators will boost the coffers of the Gambling Addiction Prevention and Treatment Fund. 

Louisiana sweepstakes casino ban ramps up 'racketeering' language

Louisiana passed HB 53 at the end of March, classifying online sweepstakes casinos as “racketeering activity”. However, state regulators had already begun sending cease-and-desist letters to all unregulated online casinos in 2025. 

HB 53 is fairly wide-ranging and will impose potential charges on anyone who offers unregulated gambling or places illegal bets. Huge financial penalties worth up to $1M could be imposed, plus — rather menacingly — “hard labor”. 

Indiana sweepstakes ban to arrive in July

Indiana Gov. Mike Braun signed HB 1052 at the end of March, with the law set to take effect in July. However, operators can simply block Indiana residents from accessing sites like Chumba Casino. 

Indiana now has a relatively mature online sports betting industry, legalized back in 2019. However, as recently as January 2025, stakeholders attempted to introduce bills to regulate online casinos. Churchill Downs, which operates the Terre Haute Casino Resort in Indiana, is strongly opposed. 

Minnesota hits sweepstakes casinos in wider gambling crackdown

Minnesota is gunning for online sweepstakes casinos among a wider hit on unlicensed gambling operators. The state’s Alcohol and Gaming Enforcement Division (AGE) has issued notices to several sweepstakes casinos, including the popular Fortune Coins. 

However, the push goes further, with warnings to many larger offshore casinos, such as Bovada and BetWhale. Minnesota — one of the few U.S. states that doesn't even allow sports betting — is clearly laying the groundwork for future regulated online gambling. 

Two Maryland bills introduced to curb sweepstakes activities

In Maryland, SB112 has been introduced to attack “interactive games” that use “multiple currency systems.” That’s a direct reference to the dual-currency system used by sweepstakes casinos, which is partially fueling the countrywide crackdown. Non-cash prizes will be permitted, however. 

Bans fail in Virginia and Florida

There was a reprieve for sweepstakes casinos and sportsbooks in Florida, Virginia, and Massachusetts, with bills timing out in the current sessions. However, the key reason is simply the expiration of legislative sessions, so new bills could be revived later in the year.