Last year saw a huge wave of states opt to outlaw sweepstakes casinos and it appears as though 2026 will follow a similar path.

Both Indiana and Maine have become the first states in the US to officially ban sweepstakes casinos in 2026, with more set to follow over the coming months.

Bans in both states are expected to take effect in July, signalling another huge blow for the sweepstakes vertical.

Maine Gov. Janet Mills Signs LD 2007 into Law to Ban Sweepstakes Casinos

As SweepsKings reported this past week, the Governor of Maine, Janet Mills, has signed Bill LD 2007 to officially ban sweepstakes casinos throughout the state.

The measure, titled “An Act Regarding the Prohibition of Online Sweepstakes Games”, means that popular operators like High 5 Casino and Stake.us will no longer be able to operate in the state under a fresh regulatory framework.

Maine now files sweepstakes casinos in the “unlawful gambling” category, so existing players will lose access when the bill goes into effect mid-July.

As part of LD 2007, any sweepstakes casinos or similar sites can be hit with fines reaching up to $100,000 per violation.

Any site using a dual-currency payment system and simulating casino-style gaming, such as slot machines and blackjack tables, falls under the category.

Indiana Has Also Targeted the Sweepstakes Market

These fast-growing sweepstakes casinos have faced a similar fate down in Indiana, which was the first state to ban them in 2026.

Earlier in March, House Bill 1052 was signed into law by Gov. Mike Braun, introducing penalties for online sweepstakes casino operators following the popular dual-currency model.

Under the measure, the Indiana Gaming Commission will have the freedom to impose civil penalties of up to $100,000 on operators knowingly simulating casino or lottery-style sweepstakes products.

The law will take effect at the start of July and has faced serious opposition from the Social Gaming Leadership Alliance (SGLA).

Fronted by VGW, the operator behind huge sweepstakes casino brand names like Chumba Casino and Luckyland Slots, the SGLA attempted to cut a deal with Indiana that would have allowed the state to generate upwards of $20 million a year from player purchases.

Indiana state lawmakers opted to decline the SGLA’s last-ditch attempt to prevent a ban, although the organisation is expected to try and sign similar deals with other states seeking to ban sweepstakes casinos this year.

Last Year Saw Six U.S. States Ban the Popular iGaming Sites

The continued movement against sweepstakes casinos follows on from what was a devastating year for the market.

Throughout 2025, a total of six U.S. states enacted explicit bans targeting sweepstakes casinos.

California and New York caused the most damage due to how big their existing player bases were, while Montana, Connecticut, and New Jersey also passed their own anti-sweepstakes casino bills into law.

Meanwhile, despite not outright banning sweepstakes casinos, Nevada passed Senate Bill 256, significantly tightening penalties against unlicensed gambling operators.

This has effectively allowed Nevada to push most prize-based sweepstakes casino operators out of the state in an attempt to protect its Las Vegas gambling economy.

In response to these bans, Eilers & Krejcik Gaming’s forecast predicts the U.S. sweepstakes casino industry’s net revenue will decline to about $3.6 billion in 2026, down significantly from the previous year.

The recent forecast also doesn’t account for Indiana and Maine’s recent bans, which will cause major revenue blows.

What’s the Deal with Sweepstakes Casinos?

The reason why so many states throughout the U.S. have been targeting sweepstakes casinos comes down to the widespread concern over the legal loophole these sites use.

Essentially, sweepstakes casinos use a dual-currency model where players bet ‘Gold Coins’ and ‘Sweeps Coins’ instead of actual money, mimicking how casinos operate in real life.

However, Sweeps Coins can be redeemed for prizes like cash transfers and gift cards when players collect enough of them, creating a legal loophole for these sites to take advantage of.

Up until last year, most sweepstakes operators were allowed to freely operate in the majority of U.S. states, but that has since changed now that a growing number of them have started to clamp down on the sweepstakes vertical.

In the eyes of a growing number of states, sweepstakes casinos are technically gambling sites, despite presenting themselves as otherwise.

This is why bans keep coming, with more set to happen following the recent moves made by Indiana and Maine.

Oklahoma, Mississippi, and Iowa Are Actively Pursuing Sweepstakes Bans

Heading into the summer, Oklahoma, Mississippi, and Iowa are also looking to ban sweepstakes casinos.

The Oklahoma legislature has recently advanced Senate Bill 1589, which would outlaw sweepstakes casinos by classifying the dual-currency system as a form of illegal gambling.

Mississippi and Iowa also have their separate bills, both targeting sweepstakes casinos operating within legal grey areas.

Just like before, bans across these three states, along with perhaps several more to join before the end of the year, would cause further damage to what was once an untouchable iGaming vertical.

It’s certainly safe to say that sweepstakes casinos are still thriving, with the likes of WOW Vegas and Chumba Casino boasting millions of combined players, but the sweepstakes ‘boom’ of the early 2020s is now officially coming to an end.

Recent bans in Indiana and Maine have already solidified that, and existing sweepstakes operators will be praying that more bans don’t come into effect.