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March Sweepstakes Casino News Recap: Sweeptastic Closing Down and Continued Regulatory Pressure
March brought sweeping changes across the sweepstakes space, from Sweeptastic announcing its shutdown to New Jersey reversing course with a proposed ban. Meanwhile, a revived RICO lawsuit targeting Apple & Google, and Publishers Clearing House signals interest in social gaming.
TLDR: a Bite-sized Overview:
- Sweeptastic Will Shut Down on May 1: Heuston Gaming announced the closure of Sweeptastic, with all accounts set to be deleted. Players were urged to redeem any winnings before the deadline.
- New Jersey Shifts from Regulation to Prohibition: Assemblyman Clinton Calabrese reversed his stance and introduced a bill to ban sweepstakes casinos in New Jersey, mirroring moves in several other states.
- New York Senate Advances Sweepstakes Ban Bill: A Senate committee unanimously approved a bill to ban sweepstakes casinos and penalize supporting services. Lawmakers cited concerns over youth access, regulatory evasion, and unfair competition with legal gambling.
- RICO Lawsuit Against Apple and Google Resurfaces: A refiled class action lawsuit accuses the tech giants of enabling illegal gambling through app store distribution and payment processing for sweepstakes casinos.
- Publishers Clearing House Eyes Social Gaming Future: PCH partnered with SCCG Management, signaling a potential expansion into the social gaming or sweepstakes casino space using its vast user database.
Sweeptastic to Shut Down Operations
Sweepstakes casino Sweeptastic announced in March that it will shut down operations on May 1.
Launched by Heuston Gaming in June 2023, the platform enjoyed a brief run but has faced internal turbulence, possibly due to regulatory headwinds and recent leadership changes.
New player registrations were halted on March 27, and all accounts will be deleted after the shutdown. In other words, hurry up and redeem any winnings if you’re a player at Sweeptastic. Also, you should be looking into Sweeptastic alternatives.
While Sweeptastic is closing, Heuston Gaming will continue operating its other platform, Cazino, which offers over 1,200 games from providers like Pragmatic Play and BGaming. The company has also teased upcoming projects with new promotions and gamified features, suggesting more developments are on the horizon.
New Jersey Moves to Ban Sweepstakes Casinos Instead of Regulations
In a surprising reversal, New Jersey Assemblyman Clinton Calabrese introduced a new bill in March to ban sweepstakes casinos in the state. Just months earlier, JustGamblers reported that Calabrese had championed legislation (A5196) to regulate the industry.
His latest bill, A5447, proposes a complete prohibition of the sweepstakes wagering model and includes new penalties for unlawful gambling operations. The bill earned a co-sponsor and was filed for Senate review.
The move mirrors efforts in states like Florida, Maryland, and New York, where lawmakers also push to outlaw sweepstakes casinos. The Social & Promotional Games Association (SPGA) criticized the bill, calling it a step backward for gaming regulation in New Jersey. Meanwhile, an earlier Senate bill (S4109) remains under consideration, seeking to bring sweepstakes platforms into the state’s regulated internet gaming framework. As multiple bills advance, the future of sweepstakes casinos in New Jersey remains increasingly uncertain.
New York Moves Forward with Sweepstakes Ban Bill
In April, a New York Senate committee unanimously passed a bill banning online sweepstakes casinos. Senate Bill S5935, introduced by Senator Joseph Addabbo, targets dual-currency sweepstakes systems that allow players to use virtual coins for casino-style games and redeem prizes. The bill would also ban payment processors, affiliates, and geolocation providers from supporting these platforms. Violators could face steep fines and potential license revocation.
The bill now heads to the Senate floor, while a companion Assembly bill has yet to progress. Similarly to other states, NY lawmakers argue that sweepstakes casinos operate in a regulatory gray area, pose risks to minors, and compete unfairly with New York’s legal gambling offerings.
Plaintiffs Going For Round Two of RICO Lawsuits Targeting Apple and Google Over Sweepstakes Casinos
Another class action RICO lawsuit targeting Apple and Google over sweepstakes casinos was refiled in March, following a voluntary dismissal of a similar case originating from last year. The new complaint, led by Julian Bargo and joined by two additional plaintiffs, narrows its focus solely on the tech giants. The suit alleges that Apple and Google facilitated illegal gambling by distributing sweepstakes casino apps, processing payments, and taking a cut of in-app purchases via Apple Pay and Google Pay.
The plaintiffs argue that both companies knowingly enabled a network of “illegal gambling software” and supported its operation through marketing tools and user behavior tracking.
Critics remain skeptical, pointing out that no definitive legal ruling has declared sweepstakes casinos unlawful. The case, now assigned to New Jersey judge Michael E. Farbiarz, faces the uphill challenge of proving illegality and enterprise-level coordination between the platforms and casino operators.
Publishers Clearing House Partners With SCCG Management
Publishers Clearing House (PCH) is best known for its iconic Prize Patrol and free-entry sweepstakes; the company has gradually modernized itself through digital games, token-based rewards, and celebrity tie-ins. In March, PCG partnered with SCCG Management, which may signal a move into the social gaming or sweepstakes casino industry.
With a historically older demographic, an estimated user base of 15 million, and decades of sweepstakes experience, PCH’s entry into the broader social gaming ecosystem could result in a new leader in the space. SCCG is expected to advise on how best to monetize this audience within today’s digital gaming landscape.