Three States Move to Ban Sweeps Casinos
With new bills advancing in Connecticut, Nevada, and Louisiana, 2025 is shaping up to be a pivotal year for sweepstakes casino regulation. If signed, these laws will make sweepstakes casinos illegal in four states so far this year.
2025 Sees Another Three States Target Sweepstakes Casinos
Three additional states - Connecticut, Nevada, and Louisiana - are on the verge of banning sweepstakes casinos in 2025, pending final approval from their governors. If enacted, they’ll join Montana, which already passed its ban earlier this year, bringing the total number of states passing anti-sweeps legislation to four in 2025.
Nevada’s Crackdown Gains Momentum
Nevada’s Senate Bill 256 has cleared both legislative chambers and is now on Governor Joe Lombardo’s desk. The bill, introduced in February, strengthens penalties for unauthorized gambling operations, though the term “sweepstakes” isn’t directly used. Early legislative discussions, however, referenced the model.
The Silver State has long been unfriendly to sweepstakes casinos, but this bill reinforces that stance by increasing enforcement tools. Without a specific implementation date listed, the law is expected to go into effect October 1 - standard for such Nevada legislation.
Connecticut Targets Simulated Online Gaming
Connecticut’s Senate Bill 1235 is also awaiting the governor’s signature. The bill passed through both chambers swiftly, spurred in part by the state’s recent settlement with High 5 Games over sweepstakes-related activity.
This sweeping bill covers multiple areas - from banning lottery ticket delivery services to permitting interstate gambling compacts. Most notably for sweepstakes operators, it criminalizes facilitating “any real or simulated online casino gaming or sports wagering” without a license - language believed to cover sweepstakes casinos.
Violators could face up to one year in jail under the bill’s class A misdemeanor classification. Like Montana and Nevada’s laws, this one is also set to take effect on October 1, 2025.
Louisiana Tightens the Screws
Louisiana’s Senate Bill 181 was introduced in April and has also passed both the House and Senate. Governor Jeff Landry is now expected to sign it. Unlike similar proposals, SB181 grants enforcement authority not just to the Attorney General, but also to the Louisiana Gaming Control Board and the State Police.
The law introduces significant penalties - up to $100,000 in fines per offense or up to five years in prison. It also outlines new licensing procedures for legitimate gambling operations. The bill explicitly takes effect on August 1, 2025, ahead of the others.
What This Means for the Industry
In addition to the four states likely to ban sweepstakes casinos this year, others already prohibit them in practice - most notably Washington, Idaho, and Michigan.
While 2025 has seen more legislative scrutiny than ever, the majority of US states still allow sweepstakes casino play. And with most state legislative sessions winding down, further proposals are unlikely until 2026.
That said, it’s been a rough year. A total of 12 states considered bills that could impact the sweeps model. From inconsistent legal definitions to sweeping comparisons with black market operators, the industry has been under fire.
MGM’s Rick Limardo recently criticized the model, saying:
“This illicit sweepstakes industry is not subject to any state gross gaming tax; does not offer any meaningful responsible gambling tools; and does not employ sophisticated KYC, identity or age-verification processes.”
While it's true that sweepstakes casinos don’t pay state gambling taxes, regulated sites do offer KYC verification and responsible gaming tools, contrary to what some critics claim.
Commentators Call Out Unfair Framing
SBC Media’s Jessica Welman made a striking observation about how lawmakers group sweepstakes casinos in with black market operators:
“There is no differentiation between the two by lawmakers... [bills are] being presented on the floor as ‘You hate illegal gambling and terrorists, right?’”
This rhetorical bundling may help explain why such bills pass with little resistance - even if they oversimplify the nuances of the sweepstakes model.
Bill Tracker – 2025 Anti-Sweepstakes Legislation
Here’s where all 12 state proposals stand as of June 2025:
Montana: Signed into law
Nevada: Passed, awaiting Governor's approval
Connecticut: Passed, awaiting final action
Louisiana: Passed, Governor expected to sign
New Jersey: Under legislative review
Ohio: Currently being debated
New York: Still in debate, session ends June 12
Illinois: Failed
Arkansas: Failed
Maryland: Failed
Mississippi: Failed
Florida: Failed
Final Thoughts
The legal landscape around sweepstakes casinos is changing rapidly. While most states still allow the model, recent trends suggest more aggressive scrutiny and broader legislative efforts could be coming.
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