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Legislative action against sweepstakes casinos continued to accelerate during the first half of 2026, with multiple US states introducing new restrictions or enforcement powers aimed at dual-currency gaming models.
Several jurisdictions have enacted laws specifically targeting online sweepstakes casinos, while others are considering regulated iGaming legislation alongside bans on sweepstakes products, reflecting a broader shift in US online gambling policy.
Washington, D.C. is considering legislation that would legalise real-money online casino gaming while prohibiting sweepstakes casinos. The proposed Internet Gaming and Consumer Protection Act of 2026 would tax online gaming revenue at 25 per cent and give preference to existing sports betting operators licensed in the district, including FanDuel, DraftKings and BetMGM.
Indiana’s HB 1052, which took effect on 1 July, prohibits online sweepstakes games using dual- or multi-currency payment systems that simulate lottery or casino-style gaming. The legislation also authorises the Indiana Gaming Commission to impose civil penalties of up to US$100,000.
Iowa has strengthened enforcement powers through SF 2289, enabling the Iowa Racing and Gaming Commission to issue cease-and-desist orders and seek injunctions against unauthorised sweepstakes, gambling and sports betting operators.
Louisiana has adopted two new laws that significantly increase penalties for sweepstakes operators. Effective from 1 August, the legislation classifies certain sweepstakes gambling offences as racketeering and expands liability beyond operators to include suppliers, platform providers, geolocation services, affiliates and other businesses supporting illegal operations. Maximum fines have increased to US$100,000, with prison terms of up to five years.
Maine has also prohibited online sweepstakes casinos using dual-currency models, introducing fines ranging from US$10,000 to US$100,000 and requiring the revocation of any state gaming licence held by violators.
In Oklahoma, lawmakers overrode a gubernatorial veto to approve legislation criminalising dual-currency sweepstakes casinos. The law, which takes effect on 1 November, applies to operators as well as suppliers, affiliates, promoters and geolocation providers.
Tennessee has similarly banned online sweepstakes casinos under legislation signed in May, classifying the operation or promotion of such products as a violation of the state’s Consumer Protection Act.
The growing wave of legislation signals increasing regulatory scrutiny of sweepstakes casino models across the US. As more states review their online gambling frameworks, businesses involved in the sector, including operators, suppliers, payment providers, affiliates and technology partners, face an increasingly complex compliance landscape.
