Several US states enacted laws against sweepstakes casinos operating dual-currency models during the first half of 2026. Some jurisdictions are discussing regulated iGaming alongside sweepstakes bans.
Washington, DC is considering legislation to allow real-money online casinos while banning sweepstakes products. The proposed tax rate is 25%, with priority given to established sportsbooks such as FanDuel, DraftKings and BetMGM. Indiana's HB 1052 took effect 1 July, prohibiting multi-currency gaming systems and imposing fines up to $100,000. Iowa expanded the gaming commission's enforcement powers to issue cease-and-desist orders and seek court injunctions.
Louisiana introduced the strictest penalties from 1 August, classifying sweepstakes as racketeering. Liability extends to software providers, payment services, geolocation vendors and affiliate networks, with fines up to $100,000 and prison terms up to five years. Maine banned dual-currency models with fines ranging from $10,000 to $100,000. Oklahoma criminalised sweepstakes casinos over the governor's veto — the law takes effect 1 November and covers operators, affiliates and technology partners. Tennessee signed a ban in May, classifying sweepstakes as a consumer protection violation.
The wave of restrictions complicates work for operators, affiliates, payment processors and technology vendors. States are rethinking their approach to online gambling, making compliance critical.
