What Entrants Need to Know
If you spend your mornings entering daily sweepstakes and tracking your submissions through directories like Sweepstakes Advantage, you might think the wave of sweepstakes casino bans sweeping across the country has nothing to do with you. After all, entering a brand-sponsored giveaway for a KitchenAid mixer or a trip to Ireland is a completely different activity from playing online slots for sweeps coins.
But the legislative language being used to crack down on sweepstakes casinos does not always draw those lines as cleanly as you might expect. For the millions of Americans who enter traditional sweepstakes every day, understanding what is happening in the casino space — and how it could ripple into the promotional sweepstakes world — is worth paying attention to.
What Happened in 2025
The past year brought a dramatic shift. California signed AB 831 into law, banning dual-currency sweepstakes casinos effective January 1, 2026. The bill passed unanimously in both legislative chambers. Connecticut, Montana, New Jersey, and Washington followed with their own restrictions. New York's attorney general forced 26 platforms to shut down through cease-and-desist letters.
The target was the dual-currency model used by platforms like Chumba Casino, WOW Vegas, and Pulsz, where players purchase gold coins and receive sweeps coins that can be redeemed for cash prizes. Regulators and the traditional gambling industry argued these platforms were exploiting the “no purchase necessary” framework to operate unregulated online casinos.
For a detailed timeline of how these bans unfolded state by state, sweepstakes casino news tracking sites have been documenting each legislative action and platform withdrawal as it happened.
Why Traditional Sweepers Should Care
Here is where it gets relevant to the sweepstakes hobby community. The legal framework that allows traditional brand-sponsored sweepstakes to operate — the “no purchase necessary” principle — is the same framework that sweepstakes casinos used to justify their business model. When legislators write new laws to close loopholes in that framework, the language does not always stay neatly confined to casino-style platforms.
California's AB 831 is a good example. The law does include a carve-out for “game promotions or sweepstakes conducted by for-profit commercial entities on a limited and occasional basis as an advertising and marketing tool that are incidental to substantial bona fide sales of consumer products or services.” That sounds like it protects traditional brand sweepstakes. But the phrases “limited and occasional” and “incidental to substantial bona fide sales” introduce ambiguity.
What counts as “limited and occasional”? A brand like Coca-Cola or HGTV that runs sweepstakes year-round is clearly not offering them on a limited basis. Are those programs at risk? Almost certainly not in practice — the law is aimed at casino-style platforms. But the legal text creates theoretical exposure that brands and their legal teams have to evaluate.
The Federal Trade Commission has long provided guidance on promotional sweepstakes compliance, and those federal protections remain intact. But as more states write their own sweepstakes legislation, the patchwork of rules becomes more complex for brands considering whether to offer promotions in certain jurisdictions.
What This Means for How Brands Run Promotions
There are already signs that the regulatory environment is making some brands more cautious about sweepstakes promotions. Legal compliance costs are rising. Brands that previously ran national sweepstakes open to all 50 states are now reviewing whether certain state laws create risks they would rather avoid.
This does not mean sweepstakes are going away. The American Marketing Association has noted that promotional sweepstakes remain one of the most cost-effective tools for customer acquisition and brand engagement. Consumer spending around sweepstakes-adjacent holidays like Valentine's Day continues to grow, and platforms like Sweepstakes Advantage are listing hundreds of new contests every week.
But entrants may start noticing subtle changes. Some sweepstakes might exclude residents of specific states. Official rules might include new disclaimers or modified entry methods. Prize structures could shift to avoid triggering language in new state-level legislation.
For daily sweepstakes entrants, the practical advice is straightforward. Always read the official rules. Check eligibility requirements carefully, especially if a sweepstakes is new or from a brand you have not entered before. And pay attention to which states are included or excluded — that list may get longer as new legislation continues to roll out.
The Difference Between Sweepstakes and Sweepstakes Casinos
It is worth restating the distinction clearly, because the shared terminology creates confusion.
Traditional sweepstakes are promotional contests run by brands to market products or services. Entry is free. Winners are selected by random drawing or instant-win mechanics. Prizes range from gift cards and products to cash and vacations. These are regulated under existing consumer protection laws and the FTC's guidelines on promotional marketing.
Sweepstakes casinos are online platforms that use a dual-currency model to offer casino-style games. They borrow the “no purchase necessary” language from traditional sweepstakes law to argue they are running promotions rather than gambling operations. The recent wave of bans targets this specific model.
The two industries share a name and a legal foundation, but they serve different audiences and operate in fundamentally different ways. The risk for traditional sweepers is not that their favorite giveaways will be banned. It is that the legislative tools being used to address the casino side could create friction, compliance costs, or eligibility restrictions that affect the promotional side as a secondary consequence.
Staying Informed
The sweepstakes landscape — both traditional and casino — is changing faster than it has in years. For hobbyist sweepers who want to keep entering daily contests and winning prizes, the best approach is the same as it has always been: stick to reputable directories, read the rules, and stay aware of the regulatory shifts happening at the state level.
The casino crackdown is not aimed at you. But it is reshaping the legal environment that your hobby operates in, and the more informed you are about those changes, the better positioned you will be to keep sweeping successfully.