US Sweepstakes Casinos Keep Shrinking as VGW Settles, Pennsylvania Moves to Ban
September saw three sweepstakes platforms close while New York fined VGW $8M and Pennsylvania drafted a bill to outlaw dual-currency casinos.
This article was produced with AI assistance and edited by the ON360 newsroom.
The US sweepstakes casino sector kept contracting in September, with three platforms ending operations, a New York regulator extracting an $8 million settlement from operator VGW, and Pennsylvania lawmakers introducing a bill that would outlaw the dual-currency model outright, according to a monthly tracker published by Gambling Insider.
The pace of state-by-state withdrawals slowed considerably compared with the summer, when operators pulled out of Indiana, Maine, Iowa and Louisiana en masse. Indiana’s ban took effect July 1, Maine’s followed on July 29, and Louisiana’s on August 1. Oklahoma’s prohibition is set to begin November 1, and several platforms were already adjusting ahead of that deadline.
Three platforms wind down
VGW’s LuckyLand Slots permanently closed on September 14 after a phased wind-down. The closure does not touch VGW’s separate LuckyLand Casino social product or its Chumba Casino and Global Poker brands.
CoinFrenzy ceased operations after September 7, having moved its shutdown date forward from an original September 25 target. The Win Zone also began a phased closure, stopping purchases on September 22 and ending gameplay two days later. Its customers have until October 23 to submit redemption requests.
Roughly a dozen sweepstakes casinos have shut down over the past several months, Gambling Insider reported, including Sweep Next, The Money Factory and LuckyStake.
New York settlement, Florida pressure on tech firms
New York Attorney General Letitia James announced an $8 million settlement with VGW on September 9, following an investigation into Chumba Casino, Global Poker and LuckyLand Slots. The agreement covers disgorgement, restitution, penalties and costs. VGW said the deal does not amount to an admission of liability and noted it had already stopped offering Sweeps Coin play in New York in 2025.
Florida Attorney General James Uthmeier widened his own campaign beyond operators and payment processors. After suing Stake and VGW in August, he sent letters to Google, Meta, Reddit, Snap and TikTok demanding they explain what steps they are taking to prevent sweepstakes casino advertising from reaching Florida residents. The platforms face an October 23 deadline to respond.
VGW has meanwhile stepped up political spending. Transparency USA data cited by Gambling Insider shows the company has spent more than $1 million on political activity, with over half a million dollars going to Florida alone and additional sums directed at Alabama, Texas and Arizona.
Pennsylvania targets dual-currency model
Pennsylvania State Representative Russ Diamond introduced House Bill 2801 on September 24 as part of a broader gaming overhaul. The measure would make it unlawful to operate, conduct, promote or assist online sweepstakes games in the state, directly targeting the dual-currency system that underpins the sector.
Violations would carry fines of $50,000 to $500,000 per offence, with the potential for revocation of an operator’s gaming licence. The bill would also give the Pennsylvania Gaming Control Board and the state Attorney General authority to investigate violations and issue cease-and-desist orders. It remains before the House Gaming Oversight Committee ahead of a November 30 legislative session deadline.
Several smaller operators continued adjusting restricted-state lists in September, moving Maine, Indiana and Oklahoma on and off Gold Coin-only or fully restricted territories, including Pulsz, Speed Sweeps, Sixty6, Jefebet, Scrooge Casino and Lucky Rush. Unlike the US, where sweepstakes casinos exploit a legal grey zone around dual-currency play, Ontario’s market operates under direct AGCO licensing through iGaming Ontario, with no equivalent sweepstakes carve-out available to operators.
Watch points for October include whether more platforms exit Oklahoma before its November 1 ban, how far HB 2801 advances in Harrisburg, and how Google, Meta, Reddit, Snap and TikTok respond to Florida’s October 23 deadline.
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