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Various states are cracking down on sweepstakes casinos, restricting their operations and, in some cases, taking legal action against operators. However, instead of slowing down, major companies are rolling out new brands in response. Their goal is to preserve market share and offset revenue losses as markets shrink amid the ongoing crackdown.
Sweeps casinos launch new brands to save market share
VGW, which operates Chumba Casino, Global Poker and LuckyLand Slots, is the most well-known sweepstakes casino operator leading the current expansion. The company is finalizing plans to launch two new sweepstakes casino sites: United Slots and LuckyLand Casino.
The launches could be imminent, as both sites recently underwent notable updates, including opening pre-registration windows and posting new user information. VGW also appears likely to discontinue LuckyLand Slots, which no longer appears under the company’s Malta license.
A1 Development — operator of Fortune Wheelz, Funrize, FunzCity, TaoFortune and NoLimitCoins — is also expanding. It recently launched a new platform, Stormrush, and seems poised to do more over time.
UTech Solutions, which is rumored to be affiliated with A1 Development, is expanding as well. Both operators have nearly identical site features and terms across their various sweepstakes casinos. They also shared the same mailing address and personal mailbox number until recently. UTech has launched six new sweepstakes casinos in the past year:
- VegasWay
- MrGoodwin
- Scarlet Sands
- JackpotRabbit
- Playtana
- SweepShark
Blazesoft, another major operator known for registering every brand under a separate entity, is also growing. It recently launched American Luck and is finalizing plans to debut Luck Party. Until recently, it operated Yay Casino, Fortune Coins, Zula Casino and Sportzino. MW Services Limited, which runs WOW Vegas, also launched two platforms this year: Rolla Casino in April and MetaWin.us in November.
State crackdowns force operators to adjust strategies
Sweepstakes casinos are grappling with a shrinking US market. Most notably, California — which reportedly accounts for nearly 20% of the sector’s total revenue — recently passed Assembly Bill 831, effectively restricting operations by all dual-currency sweepstakes casinos starting Jan. 1, 2026. The law also applies to third parties such as vendors, service providers, processors and affiliates.
California is only one of many states that have already restricted or are moving to restrict sweepstakes casinos. Five others passed prohibition laws this year alone: New York, New Jersey, Nevada, Montana and Connecticut. Washington, Idaho and Michigan also have long-standing restrictions.
Louisiana and West Virginia are pushing out sweepstakes casinos through enforcement action, resulting in more than 40 exits combined. Similar actions in Delaware, Maryland and Tennessee have led to an additional 30 exits.
Arizona, Minnesota and Mississippi are also moving to crack down on sweepstakes casinos. Meanwhile, Alabama and Utah have seen numerous class-action lawsuits filed against major operators. Nationwide, more than 100 class-action cases are pending.
The future of sweepstakes casinos in a shrinking market
The sweepstakes casino market is under structural stress — a trend reflected in the wave of new launches occurring alongside widespread exits.
On one hand, operators are introducing new platforms to replace restricted or underperforming brands. They are also attempting to reduce the risk of relying on one or a few flagship brands in an increasingly uncertain market.
On the other hand, state authorities are increasing their scrutiny. Several states have already restricted sweepstakes casinos, and others — including California and New York — have recently passed bills to do so. Overall, the market is continuing to contract.
The trend is likely to continue in 2026. The crackdown on sweepstakes casinos is expected to persist or intensify, and operators are likely to keep launching new platforms to replace banned or aging ones.
