State Bans, Operator Exits, and Legal Battles
State Bans, Operator Exits, and Legal Battles

Last month we saw significant changes in the US sweepstakes casino industry, with new legislative bans, aggressive enforcement actions, and major operator withdrawals reshaping the landscape. From California’s contentious AB831 to West Virginia’s subpoena-driven exits, here are the key stories impacting players and stakeholders this month.

TL;DR: A Bite-sized Overview:

  • West Virginia drives out 20+ operators: AG McCuskey’s subpoenas push Carnival Citi, High 5, and others out, with more exits expected.
  • Louisiana deems sweeps illegal: AG Murrill’s opinion targets dual-currency models, signaling more operator withdrawals.
  • California’s AB831 advances: Anti-sweeps bill passes committees, backed by tribes, opposed by SGLA and VGW, with operator exits rising.
  • B2Services OÜ has withdrawn its social casinos from Cali: Mega Bonanza, Hello Millions, PlayFame, and SpinBlitz are no longer available.
  • New Jersey’s A5447 prompts exits: VGW and others stop Sweeps Coins play as bill awaits Governor Murphy’s signature.
  • Mississippi sees VGW exit: VGW halts Sweeps Coins play, shifting to Gold Coin-only model after regulatory pressure.

New Sweepstakes Casinos We Added to JustGamblers.com During July 2025

West Virginia Sweepstakes Casino Crackdown: 20+ Operators Exit WV

West Virginia Attorney General John McCuskey revealed at the National Council of Legislators from Gaming States (NCGLS) that over 20 sweepstakes casinos exited WV following 47 subpoenas issued in January 2025, including:

No operators have responded to the subpoenas, and some, like Chumba, RealPrize, WOW Vegas, and Fortune Coins, continue operating in the legal gray area of sweepstakes casinos. However, I expect more operators to pull out of West Virginia in the coming months.

West Virginia’s approach contrasts with New York’s, where Attorney General Letitia James used cease-and-desist letters to drive out 26 sweepstakes operators in June 2025. Unlike New York’s warnings, West Virginia’s subpoenas are formal legal demands for documents, signaling a tougher stance to investigate violations. Failure to comply could lead to penalties, highlighting the state’s aggressive push to distinguish unregulated sweepstakes from its legal iGaming market, one of seven in the US.

McCuskey’s subpoenas, sent on his first day in office, underscore his priority to protect West Virginia’s regulated online gambling sector, unlike New York, which lacks legal iGaming but has lawmakers like Senator Joseph P. Addabbo pushing for it. With over 20 operators already gone and no subpoena responses, progress may be happening behind the scenes. We follow updates and keep you updated accordingly.

Louisiana Rules Sweepstakes Casinos Illegal

In July 2025, Louisiana Attorney General Liz Murrill declared sweepstakes casinos illegal gambling, responding to Senator Rick Edmonds after Governor Jeff Landry vetoed SB181, citing existing laws. Murrill’s opinion states that platforms like Chumba, Stake.us, and Fortune Coins violate statutes like ‘La. R.S. 14:90’ by using dual-currency models (Gold Coins for free play, Sweepstakes Coins for cash prizes), which don’t bypass illegality. This could drive operators out of Louisiana.

Murrill compares sweeps casinos to banned sweepstakes cafes, outlawed in 2014, noting they fail to meet legal sweepstakes rules like winner notification via printed lists. She claims inadequate age verification and KYC, though some operators disagree.

Following New York’s cease-and-desist letters, Murrill’s detailed judgment empowers the Louisiana

Gaming Control Board’s recent orders. With fines and civil penalties looming, including against affiliates, players should expect a challenging environment for sweeps casinos and potential operator exits.

California’s AB831 Sparks Debate as It Moves Forward

California’s AB831, an anti-sweepstakes bill, progressed in July 2025, passing the Public Safety Committee and Senate Public Safety Committee unanimously, despite heated debate. Introduced via a controversial “gut and amend” by Assemblyman Avelino Valencia, the bill targets online sweepstakes games, including casinos, sportsbooks, and poker platforms, with fines of $1,000-$25,000 and up to one year in jail for operators, payment processors, and affiliates. Supported by the California Nations Indian Gaming Association and major operators like BetMGM, it aims to protect tribal gaming exclusivity in California, the largest US sweepstakes market.

Opposition from the Social Gaming Leadership Alliance (SGLA) and Social and Promotional Games Association (SPGA), joined by the ACLU and others, argues AB831’s broad wording threatens legitimate promotions like those from Starbucks. Additionally, 22,000 customers have reached out to lawmakers, advocating for regulations over bans. VGW also actively advocates regulation over bans, citing $149 million in potential tax revenue. Critics, including lawmakers like Rosilicie Ochoa Bogh, question the bill’s rushed process and vague language. Amendments are proposed to protect players and unaware supporters. With some operators already exiting, players face uncertainty as AB831 heads to the Senate Appropriations Committee.

B2 Pulls Social Casinos from California Amid AB831 Debate

B2Services OÜ has withdrawn its social casinos, Mega Bonanza, Hello Millions, PlayFame, and SpinBlitz from California in July 2025, likely due to the advancing AB831 anti-sweepstakes bill, which threatens criminal penalties for operators and affiliates. As discussed, AB831, backed by California tribes and traditional gambling operators like BetMGM, targets the state’s massive sweeps market. While McLuck, Jackpota, and SportsMillions remain, players should redeem Sweeps Coins, as further exits are likely.

VGW Ends Sweeps Play in New Jersey and Mississippi

Virtual Gaming Worlds (VGW), operator of Chumba Casino, LuckyLand Slots, and Global Poker, is phasing out Sweeps Coins (SC) play in New Jersey and Mississippi in July 2025, following Louisiana’s lead. In New Jersey, players cannot earn SC from July 29, play with SC from August 26, or redeem SC from September 24. Mississippi’s timeline is tighter: no SC earnings from July 31, no play from August 14, and no redemptions from September 4. Gold Coin play remains available in both states, shifting VGW to a social casino model.

New Jersey’s A5447, passed in June but not yet signed by Governor Phil Murphy, bans sweepstakes gaming with fines up to $250,000 per day, prompting VGW and others like Funzpoints to exit. Mississippi’s move follows a cease-and-desist letter from its gaming regulator, mirroring Louisiana’s actions after Governor Jeff Landry’s veto. VGW’s retreat aligns with its response to California’s AB831, where it campaigns against a similar anti-sweeps bill while adding sales tax to Gold Coin purchases to show compliance.