USA
February brought increased regulatory pressure on sweepstakes casinos across several US states, with lawmakers in Tennessee and Indiana advancing legislation to restrict or ban dual-currency platforms. At the same time, enforcement activity intensified in Illinois, with regulators issuing dozens of cease-and-desist orders. Meanwhile, Legendz is setting out to innovate the sweepstakes space beyond casino-style gaming and sports betting.
TL;DR: A Bite-sized Overview
- Tennessee advances sweepstakes casino ban: Lawmakers move SB 2136 forward, aiming to classify dual-currency sweepstakes games as illegal gambling and expand enforcement powers.
- Indiana approves major sweepstakes restrictions: HB 1052 heads to Governor Mike Braun with fines of up to $100,000 for operators offering redeemable dual-currency sweepstakes games.
- Illinois regulators issue mass cease-and-desist orders: The Illinois Gaming Board targets more than 60 sites suspected of offering illegal online casino or sweepstakes gaming.
- Industry group challenges enforcement actions: The Social Gaming Leadership Alliance argues regulators misunderstand social gaming models and calls for dialogue with policymakers.
- Legendz experiments with TV-based prediction markets: The platform launches Survivor-themed prediction games using Gold Coins and Sweeps Coins to boost player engagement.
Tennessee Bill to Ban Sweepstakes Casinos Advances
Lawmakers in Tennessee advanced legislation that would prohibit online sweepstakes casinos, adding the state to a growing list considering restrictions on dual-currency platforms.
The Senate Commerce and Labor Committee unanimously approved Senate Bill 2136, introduced by Ferrell Haile, sending it to the full Senate. The measure would classify digital sweepstakes casino games as illegal gambling and allow enforcement actions against operators, payment processors, and others facilitating the platforms.
The proposal is backed by the Tennessee Sports Wagering Council and would grant expanded enforcement authority to the state Attorney General, reflecting broader regulatory efforts to curb sweepstakes operators offering cash-redeemable prizes outside traditional online casino frameworks.
Indiana Legislature Approves Sweepstakes Casino Ban
Lawmakers in Indiana have approved legislation that would prohibit sweepstakes casinos using dual-currency systems, sending the measure to IN Governor Mike Braun for final consideration.
House Bill 1052, introduced by Ethan Manning, would impose fines of up to $100,000 on operators offering sweepstakes games that allow players to exchange virtual currency for cash prizes or equivalents. The bill is part of a broader omnibus package covering areas such as sports betting and horse racing.
If signed, the law would take effect on July 1, 2026, potentially giving sweepstakes operators only a short window to exit the state. Major platforms such as WOW Vegas, MyPrize, and McLuck currently operate in Indiana and could face enforcement penalties if they continue offering dual-currency sweepstakes games after the deadline.
Social Gaming Group Pushes Back on Illinois Cease-and-Desist Orders
Social gaming operators have criticized enforcement actions by regulators in Illinois after more than 60 cease-and-desist letters were issued to platforms suspected of offering illegal online casino or sweepstakes games.
The orders were issued by the Illinois Gaming Board in coordination with the office of Attorney General Kwame Raoul. Regulators said the targeted platforms may be offering games of chance that award money or prizes without the required state licensure.
The Social Gaming Leadership Alliance (SGLA) pushed back against the move, arguing that sweepstakes-style social gaming platforms operate with consumer safeguards and should not be grouped with offshore gambling sites. The group said it remains open to discussions with regulators to clarify how social gaming models function and to address compliance concerns.
Legendz Launches Survivor 50 Prediction Markets
Sweepstakes platform Legendz introduced a new prediction-style feature tied to the upcoming season of Survivor, allowing players to forecast weekly outcomes during the show’s milestone 50th season.
The feature lets users predict which contestants will be voted off each week using the platform’s dual-currency system of Gold Coins and Sweeps Coins. Correct predictions made with Sweeps Coins can lead to redeemable cash prizes, integrating prediction-style gameplay into the broader sweepstakes casino model.
The launch highlights how sweepstakes platforms are expanding into entertainment-based prediction formats, combining reality TV engagement with social gaming mechanics to drive user participation. This is setting Legendz apart from other sweepstakes sites, perhaps it’ll become the first 5-star sweepstakes casino?