Your State Just Banned Sweepstakes Casinos – What Now?

For the last few months, your state’s legislature has been considering a bill that would ban sweepstakes casinos. The bill passed both chambers, and this morning you discover that your state’s governor has signed it into law.

What now?

This is a scenario that California, Indiana, Maine, and other states faced over the last two years. It is a scenario we just missed here in Virginia. Today, I’m going to give you some guidance as to what you need to do if your state decides to ban sweepstakes casinos. This advice should apply to any state that decides to blanket-ban sweeps casinos.

Understanding Your New Reality

The first thing you need to do is learn all you can about the law that was just passed. You can find plenty of coverage online that breaks down the bill into simple terms and explains how it will impact the sweepstakes industry. For those who want to look at the actual legislation, go to your legislature’s website or state bill tracker to read the legislation.

This will help you understand the “how and why” that lawmakers decided to take this step. Was this legislation a standalone bill to block sweepstakes casinos, or was the ban part of a larger bill that brings regulated real-money online casinos to your state? Virginia is looking to ban sweepstakes casinos as part of a greater iGaming strategy, so players would have a regulated alternative once sweeps casinos shut down.

Finally, you need to learn when the bill goes into full effect. This will vary by state. In some states, a bill will go into effect as soon as the governor signs it. Otherwise, the law will take effect on a predetermined date outlined in the bill. For example, if Virginia blocks sweeps casinos in early 2027, the law would likely take effect in July.

Next Steps

Now that you know the details of the ban and when it goes into effect, you need to take steps to get ready. Here are the next steps you need to take IMMEDIATELY:

Verify Your Casino’s Shutdown Date: Contact your casino’s customer support to check when they plan to cease operations in your state. Some will wait until the bill's effective date, while others will pull out early.

Complete Verification: For those who have not redeemed before and may still be able to before the shutdown, go through the verification process NOW. Don’t wait until it is time to redeem, as you want to beat the rush of players trying to get their funds off the site.

Redeem Available SC: If you have any SC that you can redeem, go ahead and do so immediately. Don’t be surprised if redemptions take longer than normal. If you wait until closer to the time that a site is to cease operations, you risk extensive delays and possible non-payment. (I don’t realistically expect non-payment from most major sites, but I can’t speak for all sites confidently.)

Stop Purchasing: As a general rule, I recommend that you no longer make any additional purchases at your site once a ban is announced, especially if your site is a lesser-known property. Some of the larger properties, like Crown Coins, may be OK, but even then I wouldn’t make large purchases.

Early Withdrawal Warning: When it becomes evident that a state is going to succeed in banning sweepstakes casinos, some platforms will pull out of a state early. In some cases, this may happen before a ban. If you know about potential legislation in your state, watch for sites leaving the state early so your funds don’t become locked up.

Finding a New Alternative

You will not have access to sweepstakes casinos in your state after the new bill’s effective date, so you now need to decide whether you want to try an alternative. Here are some options to consider:

Prediction markets: While not traditional gambling, prediction markets do give you a chance to purchase contracts on most anything that has a yes/no outcome. This includes sports, politics, world events, and pop culture. 

Social online casinos: Quit rolling your eyes. I know that you can’t win real money at this, but if you want to scratch the gambling itch legally, these free play casinos are available. 

Fetch Rewards or similar apps: If you want to do some gaming and earn a few rewards, look into apps like Fetch Rewards that let you build up points or cash that you can redeem for gift cards or payments to PayPal. Some of the games include social casino apps.

Real-money online casinos (where available): If your state does as Virginia is planning, and bans sweeps casinos as a part of a greater iGaming push, you will soon be able to play at real-money online casinos. This is actually the best-case scenario for any ban, as you would have a legal way to gamble online.

More Bans Are Coming – Be Ready

More states plan to ban sweepstakes casinos in 2027. That’s a reality that many of us will have to face. Virginia, Maryland, and Minnesota are just some examples of states that are likely to attempt a ban. I expect Virginia to succeed next year, so the above information is my preparation for what’s to come. 

For everyone else, keep apprised of any upcoming gambling legislation so that a potential ban doesn’t blindside you. Maybe you’ll be lucky and avoid a ban next year, but if one comes, be ready.