Where Sweepstakes Casinos Are Banned: State-by-State Status (August 2026)

Last verified: August 15, 2026

Sweepstakes casinos spent years operating in the space between state gambling codes and federal sweepstakes law. In under a year, that space closed in a string of states. Of the laws verified on this page, New York's came first, effective December 5, 2025; California, Tennessee, and Maine followed; Louisiana's twin acts took effect August 1, 2026; and Oklahoma's felony statute arrives November 1, 2026.

The laws share a template: each targets the dual-currency model - a play-money coin paired with a coin redeemable for cash or prizes - and most reach beyond operators to payment processors, platform providers, and media affiliates. Penalties range from consumer-protection remedies in Tennessee to a felony in Oklahoma.

This page covers only states whose laws we verified against enrolled bill texts or the regulator's own documents as of August 15, 2026. It is not the full national map: some states restrict sweepstakes play through older statutes or regulator pressure alone. New entries are appended by effective date as laws pass; the complete 50-state tracker lives at /states.

States with enacted bans, by effective date

New York - S5935A (effective December 5, 2025)

• Statute: Senate Bill S5935A, Chapter 605 of the Laws of 2025.
• Signed: December 5, 2025, by Gov. Kathy Hochul.
• Effective: December 5, 2025. The act "shall take effect immediately."
• What it prohibits: Dual-currency online sweepstakes games that simulate casino-style gaming.
• Penalties: Civil penalties of $10,000 to $100,000 per violation, plus potential gaming-license revocation. Fines are directed to the Commercial Gaming Revenue Fund.
• Promoters and affiliates: Covered on paper - the statute reaches financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, and media affiliates. Untested in practice: the only sweepstakes enforcement of record is the Attorney General's June 6, 2025 cease-and-desist letters to 26 operators, sent before the statute existed; nothing affiliate-specific since.

California - AB 831 (effective January 1, 2026)

• Statute: AB 831, Chapter 623, Statutes of 2025, adding Penal Code section 337o.
• Signed: October 11, 2025; chaptered the same day.
• Effective: January 1, 2026, under California's default rule for statutes (Government Code section 9600(a)). Reports of a January 1, 2027 start date or a 90-day wind-down are wrong: no version of the bill contains either.
• What it prohibits: Operating, conducting, offering, or promoting an online sweepstakes game.
• Penalties: Misdemeanor - a fine of $1,000 to $25,000, up to one year in county jail, or both.
• Promoters and affiliates: Yes, expressly. Section 337o separately bars any financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate from knowingly and willfully supporting such a game. Exemptions cover licensed gambling enterprises, the state lottery, and bona fide retail promotions.

Tennessee - SB 2136 (effective May 22, 2026)

• Statute: SB 2136 (substituted for HB 1885), enacted as Public Chapter 1117, codified at T.C.A. sections 47-18-5901 through 47-18-5904.
• Signed: May 22, 2026, by Gov. Bill Lee, after final passage on April 23, 2026.
• Effective: May 22, 2026. The act "takes effect upon becoming a law."
• What it prohibits: Operating, conducting, or commercially promoting online sweepstakes games, and separately supporting, facilitating, or assisting in their operation.
• Penalties: A violation is an unfair or deceptive act under the Tennessee Consumer Protection Act of 1977, enforced by the Attorney General. The act also deleted the six-month statute of limitations for gaming prosecutions and gave the AG civil investigative demand powers.
• Promoters and affiliates: Yes. Commercial promotion is banned directly, and the support-and-facilitation clause reaches those who assist operators.

Maine - LD 2007 (effective July 29, 2026)

• Statute: LD 2007, "An Act Regarding the Prohibition of Online Sweepstakes Games," codified at Title 8, Chapter 38 of the Maine Revised Statutes per the Gambling Control Unit's advisory.
• Signed: April 6, 2026, by Gov. Janet Mills.
• Effective: July 29, 2026, per the regulator's own document - not the July 14, 2026 date widely reported in trade press.
• What it prohibits: Internet or mobile games using a dual-currency system of payment that simulate casino-style gaming (8 M.R.S. section 1351(6)).
• Penalties: Civil enforcement - fines reported at $10,000 to $100,000 per violation, license revocation, and ineligibility for future Maine gambling licenses.
• Promoters and affiliates: Not addressed in the documents we verified. The Gambling Control Unit has so far taken a consumer-advisory approach and confirms it has issued no cease-and-desist letters to operators.

Louisiana - Act 182 and Act 48 (effective August 1, 2026)

• Statute: Two companion acts, not one. HB 883 became Act No. 182, the substantive ban amending R.S. 14:90.3 ("Gambling by computer"). HB 53 became Act No. 48, making gambling by computer a racketeering predicate under R.S. 15:1352.
• Signed: Act 182 on May 15, 2026, by Gov. Jeff Landry; Act 48 was also signed by Gov. Landry.
• Effective: August 1, 2026, for both, via the constitutional default (La. Const. art. III, section 19); neither act sets its own date.
• What it prohibits: Act 182 makes any internet or mobile game, contest, or promotion using a dual-currency system that allows exchange for a prize, cash, or cash equivalent and simulates any form of gambling "gambling by computer."
• Penalties: Operators: fines up to $100,000 (raised from $20,000), up to five years with or without hard labor, or both; each wager is a separate violation and profit forfeiture is mandatory. Players face up to $500 and/or six months - Louisiana is unusual in penalizing the customer. The Attorney General gets 10-day cease-and-desist power, a public blacklist, website takedown orders, and per-day fines of $50,000 for a first violation and $100,000 for each subsequent violation.
• Promoters and affiliates: Yes, expressly and broadly. R.S. 14:90.3(F) covers any "promoter, endorser, media affiliate, or any other person who knowingly supports or facilitates" gambling by computer - up to $20,000 and/or five years, doubled financial penalties when someone under 21 is involved. Act 48 adds racketeering exposure.

Oklahoma - SB 1589 (effective November 1, 2026; enacted but not yet in force)

• Statute: SB 1589, amending 21 O.S. section 941.
• Signed: Enacted over a veto. Gov. Kevin Stitt vetoed the bill on May 7, 2026; both chambers overrode on May 14, 2026.
• Effective: November 1, 2026, per Section 2 of the enrolled act. Sweepstakes casinos are not yet illegal in Oklahoma as of this page's verification date.
• What it prohibits: Opening, conducting, or carrying on "online casino games" involving any "representative of value" in a dual-currency system, plus dealing or providing support for those who do. Carve-outs preserve the Oklahoma Charity Games Act and tribal gaming under IGRA.
• Penalties: Class C2 felony - a $500 to $2,000 fine AND up to seven years, with at least 20 percent served, rising to two-to-10 or two-to-12 years with prior felonies (21 O.S. section 20M). The "up to 30 days in jail" figure in some trade coverage is wrong.
• Promoters and affiliates: Yes, expressly. The statute names owners, employees, geolocation providers, gaming suppliers, platform providers, promoters, and media affiliates who deal or provide support.

Michigan: no ban on the books, but a shutout in practice

Michigan has no sweepstakes-specific statute. The Michigan Gaming Control Board instead treats dual-currency platforms as unlicensed gaming under the Lawful Internet Gaming Act and related law, enforcing by cease-and-desist letter with 14 days to comply. The MGCB keeps a public list of the letters it has issued; trade reporting puts the volume at more than 130 letters in 2025 and dozens more in 2026.

The practical result: sweepstakes casinos no longer serve Michigan, even though the legislature has passed no ban. Treat the state as unavailable rather than illegal by statute.

On watch: Virginia

Virginia considered a ban and stepped back. SB 579 began the 2026 session as a prohibition, then was rewritten in committee in February 2026 into a study: the Virginia Lottery Board must convene a work group to define "online sweepstakes games" and report by December 1, 2026, with the bill carried over to 2027. Nothing is banned in Virginia today; the December report is the date to watch.

What this means if you play

Most of these laws target operators, suppliers, and marketers rather than players; Louisiana is the notable exception, with up to $500 and/or six months on the customer side. The bigger risk is operational: operators geo-block banned states fast, and balances carry redemption deadlines once an exit is announced. If you hold Sweeps Coins with an operator serving a listed state, redeem promptly.

Sources

• New York S5935A, bill text and status
• New York Attorney General press release, June 6, 2025 cease-and-desist letters
• California AB 831, chaptered text (Chapter 623, Statutes of 2025)
• Tennessee Public Chapter 1117 (SB 2136)
• Maine Gambling Control Unit press release, July 29, 2026
• Maine Gambling Control Unit
• Louisiana HB 883 bill status (Act No. 182)
• Louisiana Act 182 enrolled text
• Louisiana Act 48 enrolled text (HB 53)
• Oklahoma SB 1589 bill status
• Oklahoma SB 1589 enrolled act
• Michigan Gaming Control Board, legal vs. illegal gaming and cease-and-desist list
• Virginia SB 579 bill details