Sweepstakes Aren’t Going Anywhere
The sweepstakes casino space might be getting squeezed by regulators, but that’s not stopping investors from betting on the businesses that are doing it by the book.
This week, Xanada Investments announced an early-stage investment in Sweepium, a B2B platform that helps other companies launch sweepstakes casinos without stepping into legal gray zones.
For Xanada, it’s not just about the money, it’s a strategic position in one of the last remaining (and still legal) on-ramps for real-money-style gaming in states that haven’t legalized online casinos.
“This is about scaling a lawful model with the right controls in place,” said Xanada CEO Vladimir Malakchi, who praised Sweepium’s “clarity of vision” and “long-term thinking.”
Translation: If this sector is going to survive, it’ll need rails. Sweepium wants to be the one laying them.
What Sweepium Actually Does
Sweepium isn’t an operator, it’s the infrastructure. It’s like the Shopify of sweepstakes casinos.
The platform offers a turnkey setup that lets B2B clients launch a live, legally compliant product in just 6 to 10 weeks. The toolkit includes:
- A bank-approved payment system, something that is very rare in sweeps
- Plug-and-play access to 90+ game providers
- Tools for KYC, CRM, and real-time data tracking
- A full content and promo management suite
In short, it’s everything an iGaming operator would expect, minus the regulatory headaches of licensing in every state.
“Partnering with Xanada brought more than capital—it brought strategy, structure, and scale,” said Sweepium founder Daniel Mitton. That scale is exactly what’s needed as the walls close in on DIY sweepstakes operators without proper infrastructure.
Not Just Capital, But Also Firepower
Xanada’s involvement goes beyond funding. The investment fund is also acting as a strategic advisor, bringing a wealth of experience and expertise into Sweepium’s growth strategy and opening doors to more partnerships with content studios, sports brands, and even influencers.
The result is that Sweepium is already bringing on a mix of well-known brands and fresh names that want a legal way into the U.S. market—fast.
⚖️ The Legal Clock Is Ticking
The investment comes just as regulators across the U.S. are cracking down on sweepstakes casinos that mimic real gambling but skirt regulatory frameworks.
In the past few months alone:
- Connecticut passed a law making online sweepstakes casinos illegal under Public Act 25-112
- Montana went even harder, with SB 555 which classifies violations as felonies with up to 10 years in prison
- New York has a similar ban sitting on Gov. Hochul’s desk, ready to be signed
Each of these laws shares a common thread: they target platforms that use “dual-currency” models (like Gold Coins and Sweeps Coins) to create real-money-like experiences without formal gambling licenses.
Sweepium, meanwhile, is leaning into compliance, by offering tools that are bank-approved, transparent, and designed to stay on the right side of the law in every state it operates in.
What’s Next?
With Xanada’s capital and connections behind it, Sweepium has its sights set on scaling fast. According to the company, next moves include:
- Doubling its B2B client base by the end of the year
- Rolling out AI-powered fraud detection and responsible gaming tools
- Launching co-branded promos with content creators and sports-related platforms to expand their reach
As more states draw that line more clearly, platforms like Sweepium may be one of the few ways to stay in the game.
The game isn’t over. It’s just getting smarter.
Blaise Luis
