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Read Full BioLouisiana and Nevada could soon join Montana in officially banning sweepstakes casinos.
Ban bills in both states have passed through the legislature and now await the governor’s signature. Once each governor signs it, the bans will become official.
Different Approach to Targeting Sweepstakes Casinos
On June 2, the Louisiana House passed Senate Bill 181 unanimously, echoing the Senate vote at the end of April.
The bill classifies devices or platforms that use dual-currency payment systems as illegal gambling. The ban covers casino-style games, including slots, lottery games, and sports wagering. It calls for violation penalties of $10,000 to $100,000 and prison sentences of up to five years.
If Louisiana Governor Jeff Landry signs Senate Bill 181 into law, it will take effect on August 1.
Sweepstakes advocate, the Social & Promotional Games Association has lambasted Louisiana’s decision, accusing lawmakers of conflating legal entertainment with illegal gambling.
In a brief statement, the SPGA claims the decision “threatens Louisiana’s economy by stifling innovation and driving compliant companies out of state.”
The SPGA added: “It’s a step backward for consumer choice, lawful innovation and common sense.”
Meanwhile, Nevada has taken a different approach. It does not target sweepstakes casinos explicitly, but it gives state regulators more power to target and prosecute out-of-state operators without Nevada licenses who are operating illegally.
Senate Bill 256 expands existing penalties under Nevada law to upgrade certain gambling offenses from misdemeanors to felonies. Violations will be penalized with fines of up to $50,000 and imprisonment for up to 10 years.
In addition, anyone found guilty of illegal gambling must forfeit all profits and gross receipts, with the funds redirected to Nevada’s General Fund.
Louisiana and Nevada Follow Montana’s Sweepstakes Lead
If the Nevada and Louisiana governors sign the ban bills into law, the two states will join Montana in banning sweepstakes casinos.
A few weeks ago, Big Sky Country made headlines as the first state to ban sweepstakes casinos. The passage of the law was also condemned by the SPGA.
The association labeled the Montana law a “dangerous precedent,” which it deemed overly vague and potentially criminalizing legitimate promotional programs, such as Microsoft Rewards.
Montana sweepstakes casino players still have a few months to use up their available coins. The new law comes into effect on October 1.
Connecticut is Close Behind Louisiana and Nevada in Sweepstakes Ban
Connecticut is also on track to ban sweepstakes casinos. The state is just a formal step away from sending a ban bill to the governor’s desk.
On June 3, the House passed Senate Bill 1235, sending it back to the Senate for concurrence. Given that the last day of the 2025 Connecticut legislative session is June 4, the ban will likely move swiftly to the governor for a signature.
In addition to sweepstakes casinos, the bill will also ban lottery courier apps, such as Jackpocket. While available in over a dozen states, lottery couriers are unregulated in most.
By implementing a ban, Connecticut would follow Texas, where controversy surrounding two significant jackpot winnings via lottery couriers led to widespread scrutiny and moves to abolish the Texas Lottery Commission.
Status of Ban Efforts in Other States
Eight other states have proposed a ban on sweepstakes casinos in 2025, but several attempts have already failed.
Mississippi and Maryland Senates were the first two legislative chambers in the US to pass a ban. However, a disagreement with the House in the former and running out of time in the latter caused the bills to die.
In Arkansas, the bill sponsor withdrew the bill, while in Florida, two separate bills failed to pass the committee stage.
The Illinois legislative session ended on May 31 with the passage of a new sports betting tax. However, a bill to ban sweepstakes casinos also failed to make any progress.
New York is also nearing the end of its 2025 legislative session, which is scheduled to adjourn on June 12. There are two active ban bills in each chamber of the legislature. Both made movements but have stalled recently, so if they were to pass, lawmakers must move quickly.
Still, New York witnessed a mass exodus of sweepstakes casino operators anticipating a ban. Most recently, industry leader VGW ended sweepstakes play in the state, signaling a potential prohibition.
Two other states with a longer legislative session still have plenty of time to pass a ban. New Jersey and Ohio lawmakers adjourn on December 31. Ohio has a two-year session, meaning bills from this year carry over to the next.
