USA
December 2025 delivered a blow to the US sweepstakes casino sector, with New York’s immediate prohibition and an advancement of a bill to ban sweepstakes casinos in Maine. Federal lawsuits targeted gray-area platforms in Illinois, while SGLA’s push for favorable sweepstakes regulations in Florida.
TL;DR: A Bite-sized Overview:
- New York banned sweepstakes casinos (Social Plus Games) effective December 20, fines up to $100K for violations.
- Illinois federal suit hits several operators for unlicensed sports betting using the dual-currency sweepstakes model.
- SGLA pitches Florida legalization with $70M+ tax potential, but faces tribal/constitutional walls.
- Maine pre-files sweepstakes ban bill for 2026 session, mirroring the crackdown in states like New York and California.
New York Bans Sweepstakes Casinos and Social Plus Games
Governor Kathy Hochul signed S5935 on December 20, 2025, immediately prohibiting sweepstakes casinos, sportsbooks, and Social Plus games in New York, with fines of up to $100,000 per violation for operators, promoters, and supporting services such as payment processors and affiliates. In anticipation of the new laws, most sweepstakes casino operators had either exited or removed SC-play ahead of December 20.
The law targets dual-currency models and prediction platforms, blocking New York users from accessing sites like Kalshi and sweepstakes casinos like WOW Vegas. Licensed regulated sports betting remains unaffected, with sites like DraftKings, FanDuel, and BetMGM remaining available to NY residents.
The Social Gaming Leadership Alliance (SGLA) criticized the ban, claiming that Social Plus games pumped $230 million into the state's economy in 2024 and could have yielded $80 million in tax revenue annually with more liberal regulation.
New York joins California and others in cracking down and banning sweepstakes casinos, following June cease-and-desist orders issued to platforms like Chumba and Fliff. SGLA vows to push for consumer access and oversight alternatives.
Illinois Lawsuit Targets Betting Platforms Using Sweepstakes Models
An Illinois federal lawsuit filed on December 18 by attorney Mark T. Lavery accuses sweepstakes betting operators Props.com (Third Planet Media), Novig, and Dabble Sports of running unlicensed sports betting via dual-currency and prop-style DFS models.
The lawsuit claims platforms let users wager real money on sporting outcomes while masquerading as no-purchase-necessary promotions. Lavery, who previously launched lawsuits against VGW, argues the setups violate Illinois and multi-state gambling laws, with potential application in Kentucky and Massachusetts.
SGLA Pushes for Sweepstakes Casino Legalization in Florida Despite Hurdles
The SGLA released an EKG report projecting $1.04B in Florida player spend on sweepstakes casinos for 2025, potentially yielding $70M+ annual state revenue via licensing fees ($8-14M) and a 6% tax ($62.7M).
SGLA advocates regulated "Social Plus" games with safeguards, such as those we see in real-money online casinos regarding responsible gambling, along with audited redemptions, to capture untaxed "leakage" while boosting jobs and innovation.
However, I find it unlikely that any state will implement favorable sweepstakes regulations at this point in time. It’s much more likely that Florida will eventually seek to ban sweepstakes casinos, rather than legally allow them through specific regulations.
Maine Lawmakers Advance Sweepstakes Casino Ban Bill
Maine lawmakers pre-filed a bill in December to ban online sweepstakes casinos and games, advancing it to the Veterans and Legal Affairs Committee ahead of the January 7, 2026, legislative session.
Sponsored by Senator Craig Hickman (D-Kennebec) and backed by the Department of Public Safety, LD 2007 (SP 825) prohibits operating, promoting, or supporting sweepstakes platforms using dual-currency systems for casino-style games (sweeps slots, live table games, poker, bingo) or sports wagering, like the type Sportzino and Legendz offer.
Violations would carry civil fines of $10,000-$100,000, potential license revocation, and ineligibility for future gaming licenses. Funds raised from penalties would contribute towards a Gambling Addiction Prevention and Treatment Fund.
The move follows a June 2025 notice from the Maine Gambling Control Unit stating that no sweepstakes sites are authorized in the state. Maine allows regulated sports betting and fantasy sports, but not online casino games.
The bill mirrors 2025 bans in California, Connecticut, Montana, New Jersey, Nevada, and New York's recent prohibition mentioned earlier. Similar language appeared in Indiana drafts on the same topic of banning sweepstakes casinos.