Delaware Joins the Crackdown
Following Michigan’s lead, Delaware has issued a cease-and-desist order to VGW, the operator of major sweepstakes brands including Chumba Casino, LuckyLand Casino, and Global Poker. VGW is expected to comply, removing its sites from another U.S. jurisdiction. State-level pushback is still going strong, with several attorneys general already issuing similar orders in New York, Louisiana, Maryland, and Arizona.
AGA Calls for Action
The American Gaming Association (AGA) has added its voice to the debate. In a memo circulated to regulators, the trade body urged states to “investigate companies or platforms that offer casino games or a form of sports betting under the sweepstakes model.” Where laws are unclear, the AGA called on legislatures to tighten regulations and prevent operators from “exploiting loopholes” in state rules.
Lobbying and Local Politics
Industry lobbyist Steve Brubaker has also drawn attention to sweepstakes via a steady stream of questions on X, focusing less on gameplay and more on business licensing. Meanwhile in Arkansas, Saracen Casino is highlighting the prevalence of sweepstakes casinos as part of its push to authorize online 50/50 raffles in the state.
Market Shrinking in 2025
The bigger picture shows a shrinking market. With New Jersey, New York, and California all passing bans this year, independent forecasts peg 2025 sweeps casino revenue at $4 billion, down from earlier estimates of $4.6 billion. Analysts project a further dip to $3.6 billion in 2026. Smaller operators are already feeling the pressure. Vivaro.us announced its shutdown on October 1, citing “increasing regulatory uncertainty.”
Expert View: “Too Popular to Disappear”
Despite the setbacks, Jeff Cohen of PvX Partners argues the sector won’t vanish. Instead, he predicts a future resembling daily fantasy sports (DFS), which weathered years of cease-and-desists and shifting laws before carving out a profitable niche.
“Overall, I think sweepstakes is too popular and lucrative to disappear, which will force regulators to carve out a framework rather than shut it down,” Cohen said. “The most likely outcome isn’t a national ban but a patchwork of state-by-state rules.”
Lessons from DFS
DFS operators once faced similar scrutiny, particularly over pick ’em contests that blurred the line with sports betting. States like New York and Michigan imposed restrictions, while California’s Attorney General deemed DFS illegal altogether. Yet despite ongoing legal uncertainty, DFS giants such as PrizePicks continue to thrive, with Allwyn’s $1.6 billion purchase of a 62% stake valuing the company at $2.5 billion.
Cohen sees sweeps following the same path: “Some states will outright ban it, others will regulate, and some will allow a grey-market status under light-touch oversight.”
The Road Ahead
Currently, 17 states block or heavily restrict sweepstakes casinos, leaving 33 states plus D.C. as open markets, including high-population centers like Texas, Florida, and Illinois. Whether more states move to ban or regulate in 2026 remains to be seen, but the consensus is clear: sweepstakes casinos are entering a DFS-style evolution, shifting from rapid growth to a patchwork of state-by-state legality.
Blaise Luis
