A Strong Push
In early August 2025, a rare bipartisan show of force swept through Washington. Attorneys general from 50 states and U.S. territories signed a joint letter urging the Department of Justice to take urgent action against illegal gambling operators, especially the flood of offshore and sweepstakes-style platforms that are gaining traction across the country.
According to the AG, these sites are no longer just fringe players. They’re growing at “rampant speed,” skirting state laws, draining billions in tax revenue, and exposing everyday players to unregulated risk. It’s not just a legal gray area anymore, it’s a full-blown threat to consumer safety and state economies.
While the letter doesn’t name specific platforms, that omission doesn’t mean sweepstakes casinos are off the radar. These platforms don’t just look “shady”, they’re built to copy legit gambling sites with flashy graphics, bonus spins, and “dual-currency” tricks that keep players hooked.
With many already facing state-level bans, the AGs believe federal pressure is the next logical step.
Here’s What the AGs Want the DOJ to Do
The attorneys general aren’t just flagging a problem, they’re outlining the next steps:
- Shut it down at the source: They’re calling for federal injunctions and domain seizures, to pull the plug on these sites before they can reel in more users.
- Follow the money: Confiscate assets tied to illegal operators, including servers, domains, and profits. If it’s funding shady games, it has to go.
- Cut off the cash flow: Work with banks and payment processors to block transactions linked to unlicensed gambling platforms.
And yes—the DOJ has done this before. Remember “Black Friday” in 2011, when federal agents shut down major poker sites, or the 2024 clampdown on cyber-gambling networks. Now sweepstakes platforms may be next.
With bipartisan agreement already on the table, the AGs want to see enforcement in action—not just talk.
What’s at Stake: Tax Losses, Player Risk, and a Fragile Legal Terrain
According to the American Gaming Association, unregulated gambling platforms, including sweepstakes-style sites, are handling an estimated $400 billion annually. That’s not just money out of players’ pockets, it’s a $5 billion tax revenue hole that states are desperate to fill.
But this isn’t just about lost dollars. Many of these platforms operate without age checks, responsible gaming tools, or basic consumer protections. Players, especially younger or lower-income users, are often left vulnerable.
That’s why officials are raising the alarm. The longer this loophole stays open, the more fragile the regulated gaming ecosystem becomes.
Here’s Who Signed On—and Who Didn’t
Signed: In a rare show of unity, the letter to the DOJ was signed by attorneys general from all 50 U.S. states, plus Washington, D.C., American Samoa, the Northern Mariana Islands, and the U.S. Virgin Islands.
Didn’t Sign: Kentucky, Montana, Texas, Wisconsin, along with Guam and Puerto Rico.
Notably, AGs from Connecticut, Utah, Massachusetts, and Nebraska, all places with active sweeps regulations, co-led the call.
This isn’t politics as usual, it’s coordinated pressure mounting across states and territories, unified in purpose.
Why It Matters for Sweepstakes Platforms
This letter may be the beginning of the end for the “soft-legal” sweepstakes model. Platforms like VGW, Chumba, and High 5, that are already dodging state bans like it’s Whac-A-Mole, might soon face serious heat from the DOJ. After years of skating by in legal gray zones, the era of loopholes and light-touch oversight might be coming to a dramatic close.
Eyes on the Horizon: What’s Next?
- Will the DOJ apply real force—or let the pressure fizzle?
- Could big names be targeted court-style, like PokerStars was?
- Will credit card companies and ad networks shut them off preemptively?
- Is sweeping federal regulation finally in motion?
One fact is clear: sweepstakes casinos are no longer safe from scrutiny, and what happens next could reshape the online gaming landscape for good.
Blaise Luis
