US States Crack Down on Sweepstakes Casinos: Major Operators Withdraw

The gambling landscape in the US is currently undergoing a transformation. Indiana has banned online sweepstakes games using a dual-currency system, effective July 1, 2026. This has led to many of the largest operators, including Chumba Casino and Stake.us, ceasing their services in the state. Similar bans are imminent in Maine and Louisiana. Numerous providers have already withdrawn from the market to comply with the new legal requirements.

Numbers and facts

Indiana implemented a law on July 1 that prohibits so-called sweepstakes casinos. These casinos use a dual-currency system where players can play with "Gold Coins" but also have the option to win real money with a second currency, "Sweepstakes Coins." This practice is increasingly being classified as illegal gambling by regulatory authorities. Several prominent providers have withdrawn from Indiana. These include all brands of industry leader VGW, such as LuckyLand Slots, LuckyLand Casino, Global Poker, and United Slots. Sweepstakes Ltd. (Stake.us), B-Two Operations (McLuck, Hello Millions), and MW Services Ltd. (WOW Vegas) are also no longer active in Indiana. Dozens of sweepstakes platforms still appeared to be accepting Indiana players as of July 2, without geoblocking or updated restrictions. In parallel, the Attorney General of Tennessee shut down almost 40 online sweepstakes casinos in 2025. A nationwide enforcement wave against sweepstakes casinos occurred in 2025. Hacksaw Gaming, a popular game developer known for titles like Wanted: Dead or a Wild, is also reportedly no longer accessible to players in Indiana.

Background

The ban on sweepstakes casinos in Indiana and other US states is part of a wave of regulatory measures. These measures target the dual-currency systems used by these providers. Critics argue that this system is a facade to effectively offer real-money gambling without being subject to the usual gambling laws and consumer protection regulations. This is a nationwide phenomenon where many lawmakers agree that it constitutes illegal gambling and revenue theft. States like New York and California have already outlawed such activities. Even in Louisiana, where Governor Jeff Landry initially rejected a prohibition bill, the gaming control board issued 40 cease-and-desist letters to illegal operators. This indicates a clear trend towards stricter regulation of such offerings in the United States. Operators Utech Solutions and A1 Development did not completely withdraw their brands from Indiana but removed "Sweepstakes Promotional Play." Instead, they now offer only "Entertainment-Only Gold Coin Play," which no longer allows for real winnings.

What it means for GGL-licensed casinos

The developments in the USA show the importance of clear and consistent regulation in the gambling sector. For GGL-licensed casinos in Germany, this means a strengthening of their business model. They operate under explicit rules that ensure player protection while also creating legal certainty. The GlüStV 2021 has established a framework in Germany that takes into account experiences from other countries and tries to close potential loopholes. The strict requirements regarding licensing, player protection measures, and deposit limits clearly distinguish GGL casinos from unregulated offerings. The developments in the USA can also be seen as a warning signal for possible future unregulated offerings in Europe. The GGL thus remains an important authority for making the market transparent and safe.