Sweepstakes Casinos Are Getting Banned in Some States — Are the Apps You Use Safe?

If you’ve been playing on apps like Stake.us, Pulsz, McLuck, Chumba, or WOW Vegas, you’re using what’s called a sweepstakes casino. These apps have become incredibly popular over the last few years — and for good reason. They’re available in almost every state, they don’t require real-money deposits to play, and they give you the casino experience without the legal complications.

But something is changing. Several states are now moving to ban or restrict sweepstakes casinos, and if you use these apps, it’s worth understanding exactly what’s happening and whether your favorite platform could disappear.

What Is a Sweepstakes Casino, and Why Is It Legal Everywhere?

Let’s start at the beginning, because the legal structure of sweepstakes casinos is genuinely clever — and understanding it helps explain why the bans are coming now.

A sweepstakes casino uses two types of virtual currency:

• Gold Coins — These are free. You get them just for logging in, through daily bonuses, and by purchasing them directly. You can use Gold Coins to play games, but they have no real-money value. You can’t cash them out.
• Sweep Coins — These are the valuable ones. You earn Sweep Coins through promotions, mail-in offers, or when you purchase Gold Coins (Sweep Coins are often bundled in for free). Here’s the key: Sweep Coins can be redeemed for real cash prizes.

This two-currency structure is what makes sweepstakes casinos legal in most states. They’re technically operating as promotional sweepstakes — similar to a “no purchase necessary” contest — rather than gambling. You’re not buying access to gamble; you’re participating in a sweepstakes that happens to look exactly like a casino.

It’s a legal workaround that’s allowed these platforms to operate in nearly every state, including ones that have no real-money casino options. That’s why they’ve exploded in popularity, especially as only seven states currently have real-money online casinos: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.

Why Are States Suddenly Moving to Ban Them?

Here’s the honest answer: regulators think the line between “sweepstakes” and “gambling” has gotten too blurry.

When you’re playing slot-style games, using currency you can convert to cash, experiencing win/loss mechanics, and engaging with features designed to keep you playing longer — that starts to look a lot like gambling, regardless of how it’s technically classified.

States also see tax revenue slipping through their fingers. Real-money online casinos generate significant tax revenue for states that have them. Sweepstakes casinos operate in a legal gray zone and don’t pay those same taxes. That’s a problem when state budgets are involved.

The domino effect accelerated in 2026 because Indiana, Virginia, and Massachusetts all failed to pass iGaming legislation — meaning real-money online casinos won’t be coming to those states anytime soon. The longer real-money casinos stay unavailable, the more sweepstakes casinos grow in those markets, and the more pressure builds on regulators to act.

Which States Are Moving to Ban Them?

Here’s the current landscape as of late March 2026:

Maryland is the most advanced. HB 295 passed the Maryland House of Delegates 105-24 on March 23, 2026 — an overwhelming margin. This bill would ban dual-currency sweepstakes casinos outright. A second bill, HB 1226, is also advancing. If both pass, Maryland sweepstakes casino users would lose access to platforms like Chumba and WOW Vegas.

Minnesota is watching Maryland closely. SF 4474 was introduced on March 16, 2026, and specifically targets dual-currency sweepstakes systems — the exact model that Stake.us and Pulsz use. It’s still in early stages, but it’s moving.

Other states are in various stages of legislation. The trend is real: sweepstakes casinos that seemed untouchable two years ago are now under genuine regulatory threat.

Two Big Platforms Already Left the U.S.

This isn’t just theoretical. Spin Palace and Jackpot City, both operated by Super Group, have already exited the U.S. market. They didn’t wait for bans — they saw the regulatory writing on the wall and left proactively.

That’s notable. When established platforms start pulling out of the market voluntarily, it signals that the legal environment is becoming too uncertain to operate in profitably.

Which Platforms Are Still Operating?

As of now, the major sweepstakes casinos still active in the U.S. include:

• Jackpota — Very popular, large game library, strong brand recognition
• Pulsz — Known for generous promotions and a wide variety of slot titles
• SplashCoins — More focused library, good bonuses for new users
• Crown Coins Casino — One of the originals, been around longest
• WOW Vegas — Growing platform with solid game selection

None of these have announced any withdrawal from the U.S. market as of this writing. But their availability in specific states could change as legislation advances.

What Should You Do If You Use These Apps?

Here’s the practical advice for sweepstakes casino users right now:

• Keep your balance low. Don’t let a large amount of Sweep Coins accumulate if you’re in Maryland or Minnesota. If your state bans the platform, you’ll want to have already redeemed anything of value.
• Know how to cash out. Make sure you understand the redemption process before you need it in a hurry. Most platforms let you redeem Sweep Coins for gift cards or cash via PayPal. Know which option works for you.
• Watch state legislation. If you’re in Maryland, the ban is progressing fast. Keep an eye on HB 295’s path to the governor’s desk.
• Don’t panic. Even if these bills pass, platforms typically give users time to withdraw or redeem existing balances. You won’t just lose your coins overnight.
• Consider whether real-money options are available to you. If you’re in one of the seven states with legal online casinos — CT, DE, MI, NJ, PA, RI, WV — you have legitimate, regulated alternatives. Real-money casinos offer actual cash payouts, strict consumer protections, and a cleaner experience overall.

The Bottom Line

Sweepstakes casinos aren’t going away tomorrow, but the ground is shifting under them. Maryland’s near-total ban is the most serious threat yet, and if it becomes law, other states will take note. The platforms that survive will be the ones that adapt — either by getting real gaming licenses or finding a new model.

For now, enjoy these platforms if you like them, but keep one eye on the legislative calendar in your state. And if you’re in a state where real-money online casinos are legal, those platforms offer more stability, better protections, and a cleaner betting experience overall.