Sweepstakes Casinos Face Bans and 100+ Lawsuits

Casino

By lines

June 1, 2026

Sweepstakes casinos are facing a summer of escalating legal pressure. Cities, states, and class action attorneys have each launched separate campaigns against dual-currency gaming operators in 2026.

For informational purposes only. Terms and eligibility vary by state.

Cities, States, and Litigants Close In on Sweepstakes Casino Operators

Baltimore City filed suit against six sweepstakes casino operators in Baltimore City Circuit Court on March 5, 2026. The defendants operate Chumba Casino, Luckyland Slots, McLuck, Pulsz, Stake.us, High 5 Games, and Fortune Coins. The Baltimore complaint states: “Defendants do not offer a novel product that merely resembles gambling.” The complaint alleges the defendants operate the same slot machines, blackjack tables, and roulette wheels found in licensed Maryland casinos. Brandon Scott stated: “Illegal gambling operations are not welcome in Baltimore.” Los Angeles filed the first US municipal lawsuit against a sweepstakes casino operator in September 2025.

More than 100 active class action lawsuits target sweepstakes casino operators nationwide. Sweepedia, an independent review platform based in Tallinn, Estonia, published this count on March 19, 2026. VGW Holdings owns Chumba Casino, LuckyLand Slots, and Global Poker. VGW Holdings is the most litigated sweepstakes casino operator, according to Sweepedia. Adam Levitt is founding partner of DiCello Levitt and co-counsel for Baltimore City in the suit. Adam Levitt described sweepstakes casino platforms as “designed to extract money through unfair, abusive, and deceptive practices.”

California banned dual-currency sweepstakes platforms under Assembly Bill 831, effective January 1, 2026. Governor Gavin Newsom signed Assembly Bill 831 on October 11, 2025. The California Senate passed Assembly Bill 831 by a vote of 36-0. Oklahoma enacted a sweepstakes casino ban via legislative veto override in May 2026. California, New York, Indiana, Connecticut, and Montana have taken action against sweepstakes casino operators, per Picks and Parlays. Illinois regulators reportedly sent cease-and-desist letters to dozens of operators in early 2026, per Picks and Parlays.

Players in restricted states may lose platform access with limited advance notice. Indiana and Iowa sweepstakes casino bans take effect July 1, 2026. Operators typically announce state exits on their official websites before a legal deadline. Players should verify current state eligibility at each operator’s official website before making any purchase.