Three Governors Hold Sweepstakes Casino Fate in May

Casino

By lines

May 8, 2026

Sweepstakes casino operators in four US states face their clearest regulatory test of 2026. Oklahoma Governor Kevin Stitt has until May 9 to sign, veto, or allow SB 1589 to become law automatically. Iowa and Louisiana governors hold similar bills on their desks. Minnesota lawmakers face a May 18 session deadline to pass sweepstakes casino ban SF 4474.

What Four States Must Decide Before June

Oklahoma SB 1589 passed the House 65-21 on May 4. The Senate passed SB 1589 unanimously in March 2026. SB 1589 broadens Oklahoma’s gambling statute to cover online dual-currency payment systems. Violations under SB 1589 constitute a Class C2 felony, with fines from $500 to $2,000. The law takes effect November 1, 2026, if Governor Stitt signs or takes no action. SB 1589 also extends liability to geolocation providers, payment processors, and media affiliates.

Iowa SF 2289 passed the Senate 47-0 and the House 93-0. SF 2289 would grant the Iowa Racing and Gaming Commission cease-and-desist authority over unlicensed operators. Governor Kim Reynolds has received SF 2289 but has not yet acted on the bill. Louisiana HB 53 classifies sweepstakes casino operations as racketeering under Louisiana law. HB 53 carries penalties of up to $1 million and 50 years in prison. Louisiana Governor Jeff Landry vetoed a similar bill, SB 181, in 2025. Governor Landry cited SB 181 as overly broad. Governor Jeff Landry has not publicly stated a position on HB 53.

Minnesota SF 4474 passed the Senate 62-3 on April 30. SF 4474 bans dual-currency sweepstakes platforms and extends liability to payment processors and platform providers. The Minnesota House must pass SF 4474 before the session ends on May 18. Eight US states have signed sweepstakes casino bans into law as of May 2026. California’s ban took effect January 1, 2026, following the signing of Assembly Bill 831. Tennessee enacted a sweepstakes casino ban in April 2026. The Tennessee Legislature passed SB 2136 with a 69-17 House vote on April 24.

Sweepstakes casino operators have begun exiting affected markets ahead of legislative action. Industry projections cited by Bettors Insider show US sweepstakes casino market revenue falling in 2026. Revenue projections show a decline from $4.6 billion in 2025 to $3.6 billion in 2026, reflecting state-level exclusions. The bills advancing in 2026 extend liability beyond platform operators to include payment processors, geolocation providers, and promotional affiliates. Each new governor signature narrows the operating territory for sweepstakes casino platforms in the US.