Michigan recently put a ban on sweepstakes casinos. This led to most sweepstakes operators officially pulling out of Michigan in 2023 so that they could avoid potential legal problems. Then, at the start of 2024, the Michigan Gaming Control Board (MGCB) began sending cease-and-desist letters to:

• PredictionStrike Inc
• Sweepstakes Limited
• VGW Luckyland Inc.

Ultimately, what this means is that some of the most popular sweepstakes casinos on the internet, from Chumba Casino to Luckyland Slots, will no longer be allowed to operate in the state of Michigan.

“Gambling regulations are in place for a reason, and illegal gambling operations are not welcome in Michigan.”

MGCB Executive Director Henry Williams.

It’s obviously bad news for sweeps fans in Michigan — but what does this mean for the future of sweepstakes casinos in other US states?

The Future of Sweepstakes Casinos

Are Sweepstakes Casinos Legal?

The short answer is yes. Sweepstakes casinos are legal in most parts of the world, including the US. However, as you now know, Michigan has decided to start cracking down on sweepstakes casinos, as they’ve identified that they’re similar (in nature) to online casinos. On top of Michigan, other US states that have placed a ban on sweepstakes casinos include:

❌ Washington State

❌ Idaho

❌ Nevada

Despite this, there’s currently no indication that other states in the US will join Michigan in implementing a ban on sweepstakes casinos. The reason for this is because sweepstakes casinos follow a sweepstakes model, so they’re technically not classed as gambling sites.

Instead of playing online casino games with real money, you play with Sweeps Coins (SC) and Gold Coins (GC), which is why sweepstakes casinos are able to bypass legal barricades in most states. You can see this list of which operators offer free SC coins, which can then be used to play slots and other popular sweepstakes games.

Which States Allow Sweepstakes Casinos?

Aside from the states mentioned above, all other US states are perfectly happy with sweepstakes casinos and allow them to legally operate. Examples of these states include:

✅ Alaska

✅ Arizona

✅ California

✅ New Mexico

✅ Texas

Whether you live in Alaska or California, you can play in sweepstakes casinos providing that you’re above the age of 18. In some US states, the legal gambling age is 21, so make sure to check this before playing.

Sweepstakes Casinos: Potential Regulations Moving Forward

Every year, new sweepstakes casinos hit the internet. They’re incredibly popular (Chumba Casino alone has 1 million daily players) so it’s highly unlikely that US states will decide to put further bans on them, especially as sweepstakes casinos pay large amounts of tax.

Naturally, land-based casinos and online casino operators see sweepstakes casinos as a direct threat. Although this won’t have an effect on the regulatory side of things, it could lead to some operators attempting to buy-out sweepstakes casinos to take away the competition, although this isn’t likely.