Sweepstakes casinos have gained massive popularity since 2020.
Chumba Casino, LuckyLand Slots, and Stake.us are just some of the sites that have exploded, attracting millions of sign-ups in the process.
However, the issue with sweeps casinos is that they’ve always operated in what’s called a legal “grey area”. Sure, they look and feel like regular casinos. But they aren’t technically classed as gambling sites due to the fact that players use virtual coins – not real money.
This is why the past half-decade has seen US sweeps casinos operate with complete and utter freedom. No regulations, no bans. The entire time, they’ve been allowed to operate in 48 out 50 states, enabling these sites to become as popular as they have.
Interestingly, though, it looks like things could be about to change. The past 12 months have seen lawmakers, regulators, and even some players start to turn on sweeps casinos, with many of them believing that these sites are indeed gambling-based, despite claiming not to be. It’s now opened up a “clamp down” on sweeps casinos, with all signs pointing to potentially huge legal changes in the near future.
Whether you’re a die-hard player or casual fan of sweepstakes casinos, legal changes would have an impact on how and where you can play moving forward. There’s no need to panic just yet, but it’s extremely likely that at least a handful of states are going to ban sweeps casinos before 2027.
Let’s take a closer look at exactly what’s going on.
Why Sweepstakes Casinos Are Under Pressure from Regulators
The heat has turned up on sweepstakes casinos ever since 2024, which appears to be around the time when state lawmakers and regulators realized that these sites have been taking advantage of a “legal loophole” (the loophole being that sweeps casinos use virtual coins to avoid being impacted by gambling laws).
Players sign-up with sweeps casinos using no deposit sweeps offers, bet virtual Sweeps Coins, and try to win real-life prizes. Under normal circumstances, this wouldn’t be an issue. However, sweepstakes casinos let players purchase these coins using real money so that they can keep playing, which in the eyes of regulators is a little bit like stealth gambling. This is why sweepstakes casinos are in legal trouble.
Over the past couple of years, plenty of lawsuits have been flying around and many are still ongoing. Just recently, High 5 – one of the most popular US sweeps casinos – was ordered by a Washington state jury to payout $25m in damages to players, the biggest payout to-date. And it was only last year when Pulz – another popular site – lost a class action lawsuit that forced the operator to payout a $1.32 million settlement to players. In a nutshell, no sweeps casino has been safe from legal punishment.
More States Keep Filing to Ban Sweepstakes Casinos — But Mississippi’s Proposed Bill Has Collapsed
The situation keeps getting worse for sweeps casinos, too, with 7 states recently filing bills to regulate and even outright ban these sites:
- Connecticut
- Idaho
- Maryland
- Mississippi
- New Jersey
- New York
- Washington
These states are effectively looking to protect the players who live there and put an end to the legal grey area that sweepstakes casinos have been operating under for a very long time. But to the surprise of the industry, Mississippi’s bid to ban sweepstakes casinos has completely collapsed after failure to find an agreement. Ultimately, this is great news for the sweepstakes casinos currently operating in Mississippi, as it means they get to stay active there without any type of restrictions, although another bill could potentially be attempted in the future.
What the outcome will be for the other states looking to ban sweepstakes casinos remains to be seen. For example, New York is currently pushing hard for sweepstakes casino games to be banned. If members of the NY State Senate Racing, Gaming, and Wagering Committee vote to advance bill S5935, it would mean any sweepstakes casino that continues operating there would receive a fine of up to $100,000 per violation. And because New York is such a big state for sweepstakes casino players, this would do unimaginable damage to the sweepstakes industry, which the site operators would no doubt be eager to dispute.
VGW Increases the Minimum Player Age to 21 for Chumba Casino and LuckyLand Slots
With everything going on with sweepstakes casinos at the moment, VGW – the owner of Chumba Casino and LuckyLand Slots – has made the proactive move to increase the minimum player age from 18 to 21. What this means is that players who were previously under 21 can no longer use their sites to play sweepstakes casino games and anyone looking to join them from now on must be at least 21 years old.
This move is a smart one and reflective of what’s likely to come from other operators in the near future. Essentially, VGW is being smart by promoting responsible gambling and also protecting itself from potential legal scrutiny over the coming years, as one of the predicted regulatory outcomes from states is that they will demand existing sweepstakes casinos to increase their minimum player ages. By putting themselves one step ahead, this could potentially allow VGW to avoid a major legal headache in the not-so-distant future, even though it’s going to mean a significant short-term decline in players, as Chumba Casino in particular is a popular site with players aged 18 to 20.
Because Chumba Casino and LuckyLand Slots are two of the biggest sweepstakes casinos on the internet, this is likely going to encourage other sites to copy them. Don’t be surprised if you see more sweepstakes casinos begin to increase their player ages over the coming months in a bid to provide themselves the same type of legal protection, especially now that state regulators are turning up the heat. And really, this won’t be a bad thing, as increasing the minimum player age will help to prevent underage gambling and make the sweepstakes casino space more responsible.
How Did Sweepstakes Casinos Become So Popular to Begin With?
Since 2020, sweepstakes casinos have experienced explosive growth. It inevitably led to the sweepstakes casino world reaching a point where it could no longer be ignored from a legal perspective, as there’s simply too many players and too much money involved. With the industry now reportedly worth over $7 billion, it’s understandable why regulators have decided to pull up a seat at the table to see what’s going on.
When it comes to why sweepstakes casinos have become such a mega-hit, there are various reasons behind it. The main one is that these casinos give out huge welcome bonuses, allowing players to stack up on Gold Coins and Sweeps Coins just for creating accounts. On top of this, sweepstakes casinos generally offer thousands of free-to-play games, tons of tournaments, and (of course) the opportunity to win prizes, too.
The prize-winning element is especially attractive. No matter which sweeps casino you sign-up with, any Sweeps Coins you win can be redeemed for prizes. These prizes often include cash transfers, gift cards, and random merchandise like hats and hoodies. From a player’s perspective, it’s very exciting, especially because it’s technically possible to win these prizes without wagering your own money.
Summary: What’s Next for US Sweeps Casinos?
Sweepstakes casinos in the US are under serious legal scrutiny. Over the past year alone, we’ve seen countless player lawsuits as well as seven (and counting) states file bills for sweepstakes casinos to be regulated or outright banned. Simply put, it’s not been a good period for the operators behind these sites – and it could be about to get messier.
Nobody knows for certain what will happen next. However, based on current trends, the likely outcome is almost every sweepstakes casino will raise their minimum player age to 21. At the same time, these sites will be banned in some states while having to face tighter regulations in others, much like traditional online casinos do.
The sweepstakes casino industry will suffer from this, that’s for sure. Player counts are going to drop as the sweeps casino “boom” finally comes to an end. It’s not all bad news, though, because players will still get to access these sites. The only difference will be that laws and regulations are much tighter than before and players might have to use off-shore sweepstakes casinos to get past them.
For now, at least, all we can do is wait to see what happens. Over the coming months, the main focus point will be whether the likes of Maryland and New York are able to successfully ban sweepstakes casinos, which they’re well intent on doing.