Attorney: Sweepstakes Casinos Got Too Big for Their Own Good

When Regulators Started Paying Attention

“About two years ago, it became relatively clear that the sweepstakes market had caught the attention of state regulators and tribal leadership,” Hammon said. “Once that happened, the die was cast for the sweepstakes casino traditional model.”

Hammon believes the industry’s rapid growth ultimately made that scrutiny unavoidable.

“Once the sweepstakes casino industry got big enough to garner the attention that it did, it was over,” he said. “At that point then it became the mission of tribal lobbyists to curtail or shut down the industry completely and they have been very successful. Any of the remaining states will be targets as well.”

The Case Before Lawmakers

Hammon said operators also face a difficult argument when trying to persuade state legislators to support the existing model.

“They’re never going to win a battle in the court of public opinion with state legislators,” he said. “Because the core argument is, ‘We want people to be able to gamble, but we don’t want to face gambling regulation.’ It’s not a winner.”

States have continued taking different approaches during the 2026 legislative session. Several approved new restrictions, while similar proposals failed elsewhere, leaving operators to navigate increasingly different rules depending on where they operate.

Operators Are Already Trying Different Models

Hammon says he’s beginning to see operators move beyond the traditional dual-currency model.

“I’m starting to see some models now that either do incorporate some genuine non-casino style products that are also being offered along with the sweepstakes casinos,” he said.

“It just means that the states are going to make it so difficult and so taxing from a regulatory standpoint that it’ll be effectively no longer a product that people pursue.”

Some operators have already experimented with different products. Kickr closed its sweepstakes casino and relaunched as GetGud, a skill-based competition platform, while VGW introduced Monopoly Match, a Match 3 mobile game.

What Comes After Sweepstakes?

Hammon doesn’t expect sweepstakes casinos to be the last gaming product to grow faster than state regulation.

“Some other product will fall through the cracks much like sweepstakes have fallen through the cracks and grown and grown and grown while states were focused on regulating sports betting for the first time,” he said.

“What is that going to be?”