Are Sweepstakes Casinos a Booming Trend Fading Fast?

Sweepstakes casinos have gone from popular to a quick downfall with legal issues and a ban implemented in California.

One undeniable fact about the online betting industry is that things can change in a matter of minutes. Sweepstakes casinos have been quite popular in recent years, but their reign of popularity is quickly coming to an end.

With legal issues, Pragmatic Play pulling the plug on Sweepstakes, and a ban in California, it seems they are quickly hitting their low.

How the decline began

Sweepstakes casinos started as what is thought to be a ‘clever’ way to navigate the grey areas of the US gambling regulations and laws. Using dual-currency systems where you get to use gold coins for fun and sweep cash for prizes was a way operators sidestepped gambling regulations.

It’s part of the reason companies like Chumba Casino and Stake.us became popular, especially in states where online gambling was not allowed.

They brought the flavour of real casino games and real rewards without the requirement of traditional betting and blurred the line between Sweepstakes and traditional casinos.

By 2022, the Sweepstakes casino market had generated $3.1 billion in revenue, with projections estimating a rise to $8 billion in the future.

The end of the honeymoon phase

While it started off strong, it didn’t last very long. In September 2025, the California Senate unanimously passed Assembly Bill 831, banning Sweepstakes casinos and criminalising any direct and indirect support for them. This includes payment processors, affiliates, and even game suppliers.

This was a big hit, considering California makes up over 17% of the US Sweepstakes market. It became the sixth and largest state to take this type of action. The bill got backing from over 50 Native American tribes, with the priority being to protect regulated gaming and consumer safety.

According to the Yuhaaviatam of the San Manuel Nation, they cannot allow unregulated and predatory Sweepstakes operators to work around the regulations, as it undermines the trust and integrity of California’s gaming policies.

Pragmatic Play withdraws from the market

Just days before the California vote, industry-leading software provider Pragmatic Play revealed it would be withdrawing completely from the US Sweepstakes market.

This decision was followed by a lawsuit filed by Los Angeles City Attorney Hydee Feldstein Soto, who hit Stake.us and its suppliers for alleged operation of illegal gambling platforms.

Pragmatic Play had simply stated that they are making an exit due to regulatory developments and evolving legislation. Again, putting great emphasis on the providers’ commitment to compliance.

It was a heavy blow for Sweepstakes casinos that rely on quality content to draw in players.

A divided industry

While some providers jumped at the opportunity to enter that market, other providers were against Sweepstakes from the start. Play’n GO is one such operator that refused to supply Sweepstakes casinos with their games.

Play’n GO CEO Johan Törnqvist made it clear that unregulated markets are a great risk for players but also for the industry's integrity.

AGA takes a shot

The American Gaming Association (AGA) added fuel to the fire when it released data showing that 90% of Sweepstakes players view it as gambling. It also revealed that 68% were playing to win cash.

With the data released in August, the AGA put out a warning stating that Sweepstakes platforms mimic regulated casinos in terms of design and advertising, which contributes to creating confusion and risk.

Other states like New Jersey, Montana, and Connecticut have already implemented bans, while multiple other states are currently exploring regulatory frameworks. But the AGA remains set in its stance that Sweepstakes casinos are basically gambling operations that lack the needed oversight.

The future of Sweepstakes casinos

This leaves the question of what the future looks like for Sweepstakes casinos. Can we expect to see them dying out sooner rather than later?

Currently, we see legal battles getting worse, states banning the activity, and major suppliers pulling out, which doesn’t paint a very bright picture for the future of Sweepstakes.

But on the other hand, there are still operators who remain defiant and are hoping for regulatory reform rather than completely killing off the market. The future of Sweepstakes depends solely on lawmakers, suppliers, and players' views. And right now, it appears the odds are against them.

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By Deni

Verified Casino Expert

Expertise: Casino Content Writing, Journalism & (PR), Gambling Regulations, Dutch & German Gambling Markets

Hi, I'm Deni! I'm a research obsessive with a passion for gambling regulations, market trends, and casino news. I dig deep into every topic I cover - so every article, review, or guide I write is built on solid research and real detail.

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Last updated: September 19, 2025

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Are Sweepstakes casinos a booming trend fading fast?

How the decline began

The end of the honeymoon phase

Pragmatic Play withdraws from the market

A divided industry

AGA takes a shot