Sweepstakes Casino Revenue Down $1B in 2026 Ban Wave

Casino

By lines

May 9, 2026

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The sweepstakes casino market faces a projected $1 billion revenue drop in 2026. Industry analysts estimate 2026 US sweepstakes casino revenue at approximately $3.6 billion. That figure is down from $4.6 billion in 2025. Nine states have enacted bans or restrictions on the dual-currency model sweepstakes casino platforms use. Operators are exiting state after state as enforcement accelerates.

Nine State Bans Have Closed Access Across Key US Markets

California’s sweepstakes casino ban took effect January 1, 2026. California accounted for an estimated 17 to 20 percent of total US sweepstakes casino revenue. New York, New Jersey, Connecticut, and Montana each passed bans in 2025. Indiana HB 1052 takes effect July 1, 2026. Maine LD 2007 takes effect in early July 2026. Washington state restricts the sweepstakes casino model under existing law RCW 9.46.240. Eight jurisdictions have now enacted formal restrictions on sweepstakes casino access.

Chumba Casino, McLuck, Stake.us, and Crown Coins exited Tennessee after cease-and-desist letters from the Tennessee attorney general. WOW Vegas ended sweeps coin gameplay for Illinois residents on May 1, 2026. Ruby Sweeps exited Indiana on May 4, 2026, ahead of Indiana HB 1052’s July 1 effective date. Multiple platforms exited before laws were signed, driven by attorney general enforcement action.

Four governors hold pending sweepstakes casino bills as of May 9, 2026. Oklahoma SB 1589 passed the state House 65-21 and the state Senate unanimously. Oklahoma Governor Kevin Stitt faces today’s signing deadline for Oklahoma SB 1589. Louisiana HB 53 carries criminal penalties of up to 50 years in prison. Louisiana HB 53 classifies sweepstakes operations as racketeering, according to Legal Sports Report. Tennessee SB 2136 and Iowa SF 2289 also await governor action.

Sweepstakes casinos remain legal in approximately 35 states. Major remaining markets include Texas, Florida, Ohio, Pennsylvania, Arizona, Colorado, Nevada, Michigan, Georgia, North Carolina, and Virginia. Revenue projections of $3.6 billion in 2026 represent the largest single-year market contraction on record, according to Bettors Insider.