NCLGS vs Sweepstakes
At the NCLGS Winter Meeting, state leaders emphasized that sweepstakes casinos aren’t just niche entertainment, they’re crossing legal lines and inviting fresh enforcement actions.
At this year’s NCLGS Winter Meeting in San Juan, the message from lawmakers and gaming officials was clear: the days of playing in the gray zone are numbered. What was once a niche, somewhat overlooked space in online gaming is now a top target for enforcement and legislation.
Why This Matters Now
At this year’s NCLGS Winter Meeting, sweepstakes casinos went from fringe topic to front-page issue. What was once a legal gray area is now a flashing red zone for regulators, lawmakers, and attorneys general.
And for the first time, states aren’t just debating what to do, they’re taking real steps.
Regulators Are Done Playing Nice
The NCLGS Winter Meeting wasn’t your usual industry handshaking event. It turned into something of a sweepstakes showdown, with a lineup of heavy hitters laying out exactly how and why the crackdown is accelerating.
On stage were West Virginia Delegate Shawn Fluharty (also NCLGS President), gaming law veteran Daniel Wallach, former Colorado regulator Dan Hartman, Social Gaming Leadership Alliance (SGLA) chief Jeff Duncan, and legal counsel Bryan Schroeder from ARB Interactive. And if there was one thing they agreed on? It was that sweepstakes casinos were testing their luck, and not in a good way.
Daniel Wallach made it simple: attorneys general don’t need new laws to act. A formal opinion letter can be enough to push sweepstakes casinos out of a state, and fast.
Louisiana’s AG proved it. One opinion declaring the model illegal led to a near-total market exit, even without a new ban on the books.
And this is a strategy gaining ground. These opinions let regulators move quickly by sending cease-and-desist orders, pressuring payment providers, and cutting off access without waiting for lawmakers to catch up.
“Illegal Gambling and Revenue Theft”
West Virginia Delegate Shawn Fluharty, who heads NCLGS, didn’t hold back — calling sweepstakes casinos “illegal gambling and revenue theft.”
He and others at the meeting made it clear that they weren’t buying the “social gaming” label. They argued these platforms act like casinos, profit like casinos, and therefore should be held to the same standards, and that includes licensing, audits, and paying taxes.
Former Colorado gaming director Dan Hartman however acknowledged some platforms are trying to self-regulate, but said it plainly: good intentions don’t replace legal compliance.
Industry to Lawmakers: Regulate Us
On the defensive, industry voices framed their push as one for clarity and regulation rather than resistance. Jeff Duncan, who leads a trade group representing major sweepstakes operators, told the crowd they’re not trying to skirt the law. In fact, he said they want regulation. They want to be taxed. They want to be part of the gaming ecosystem, not in the shadows of it.
He also defended the use of virtual currency models like “Gold Coins,” arguing they don’t function like traditional gambling. Well, that’s a line the industry has used in state hearings across the country.
And as for the silence in the courts? That’s not surrender, said Bryan Schroeder of ARB Interactive. It’s a strategy. Operators are focused on educating lawmakers and shaping legislation, not spending millions on legal battles they might not win.
2025: A Year of Bans, Cease‑and‑Desist Orders, and New Bills
This isn’t just noise. In 2025, six states passed laws banning sweepstakes casinos, including giants like New York and California.
New York didn’t hold back: the new law not only banned these platforms but made violations a Class E felony, with steep fines and real legal consequences. Many operators didn’t wait around, they pulled out immediately.
Meanwhile, regulatory agencies in states such as Maryland, Delaware, Michigan, and Tennessee have issued cease‑and‑desist orders that drove dozens of platforms from their markets.
Looking ahead, 2026 is already stacking up. Florida, Indiana, and Maine have fresh ban bills in the pipeline, and more are expected once legislative sessions kick off in January.
Adapt or Exit: How Operators Are Pivoting
Operators aren’t just watching from the sidelines. Big names like VGW, A1 Development, and Blazesoft are already reworking their models, rolling out new platforms, tweaking currencies, and adjusting terms to stay live where they legally can.
It’s a scramble to hold onto users as the legal ground shifts beneath them.
But not everyone’s hanging in. As enforcement picks up, some platforms are quietly pulling out of key states. The smaller players, especially, are opting to exit rather than gamble on legal gray areas.
What This Means for Players and the Broader Gaming World
If you’re a player, you might’ve already noticed some platforms disappearing from your state. That’s going to continue.
As more laws pass and regulators act, access will get tighter. What’s legal in one state might not be in another, and that’s going to matter more in the months ahead.
Bottom Line
Sweepstakes casinos have operated in the legal gray for a long time. But that space is shrinking fast.
With regulators cracking down, attorneys general taking the lead, and lawmakers lining up bans, the message is loud and clear: adapt or get out.
For the industry, the next chapter isn’t just about defending what they’ve built — it’s about whether they can build something that fits the rules of the game.
Blaise Luis
