Sweepstakes casinos are illegal in New York as of Friday evening, though the industry has treated the market as such for months.
New York Gov. Kathy Hochul signed S 5935 on Friday, which bans sweepstakes casinos using dual currencies and is effective once signed. Most operators have left New York already, though, since the legislature passed the bill back in June.
Sweepstakes took some significant hits in 2025, with the bans in New York and California the biggest hits. More states will look to ban the industry in 2026, with two states already seeing bills filed for next year.
Sweepstakes bills in IN, ME
Most states that banned sweepstakes casinos do so using language that bans operators from offering games with dual-currency systems, in which one currency is the free-to-play coin while the other coin allows for real cash prizes.
The bills in Indiana and Maine are following suit.
Maine Sen. Craig Hickman introduced LD 2007, which would make operating a sweepstakes casino in the state a civil violation punishable by a fine between $10,000 and $100,000.
Indiana’s HB 1052, introduced with bipartisan support from Republican Reps. Ethan Manning and Peggy Mayfield and Democratic Rep. Justin Moed, would make operating a sweepstakes casino a class 6 felony, punishable by up to 2.5 years in jail and up to a $10,000 fine, as well as a $100,000 civil fine.
What other states could act?
There could be legislation filed in Virginia to ban sweepstakes casinos in 2026. The Virginia Lottery lamented not having the same power as regulators in other states that can issue cease-and-desists at a gaming hearing in October, though it is working with state policy and its attorney general.
Arkansas, Florida and Maryland, meanwhile, failed to pass their sweepstakes casino bills last year that could try again in 2026.
Not every state needs a bill, though.
Louisiana tried to pass legislation banning sweepstakes casinos last year, but Gov. Jeff Landry vetoed the bill, saying the state’s gaming regulators could handle the operators without it. The Louisiana Gaming Control Board then issued more than 40 cease-and-desists.
Michigan and Pennsylvania, which have two of the largest online casino markets in the country, also saw its regulators send cease-and-desists.
