Regulators across the U.S. are tightening control. In New York, 26 sweepstakes casino operators were ordered to stop serving customers.
Montana’s SB 555 outlawed platforms offering any form of wagering or payouts in “currency.” Connecticut went further, making sweepstakes operations a criminal violation under SB 1235.
Despite growing restrictions, player interest continues to rise. Sweepstakes casinos rely on dual-currency systems—one for play and one for limited redemption.
The key legal argument is that because players can enter for free (via mail-in options or bonus coins), the model doesn’t involve “consideration,” one of the three elements defining gambling.
Regulators, however, question whether these free routes are real or simply theoretical. The Social & Promotional Games Association (SPGA) criticized Montana’s move, arguing that lawmakers are misinterpreting what makes promotional games lawful.
Still, the risks are hard to ignore: murky payout terms, weak age verification, and disputes over redemption. To stay compliant, operators must keep free-entry methods accessible, redemption clear, and fraud controls documented.
Whether sweepstakes casinos become a bridge into restricted markets or a legal trap waiting to spring depends on how responsibly operators manage that fine line between promotion and gambling.
To find out more, read the full article by Atlaslive.
Atlaslive
Atlaslive, formerly known as Atlas-IAC, underwent a rebranding campaign in May 2024. It is a B2B software development company that specializes in creating a multifunctional and automated platform to optimize the workflow of sports betting and casino operators.
Key components of the Atlaslive Platform include Sportsbook, Casino, Risk Management and Anti-Fraud Tools, CRM, Bonus Engine, Business Analytics, Payment Systems, and Retail Module. Follow the company on LinkedIn to stay updated with the latest news in iGaming technology.
Source: GMB
