Sweepstakes Casino Ban Updates: Momentum Building Early in 2026

Key Highlights

  • Maine’s head of Gambling Control Unit discusses proposed rules for sports betting in the state.
  • Indiana and Maine have scheduled hearings in January 2026 to ban sweepstakes casinos.
  • Maine’s bill details how sweepstakes casinos operate, including a dual-currency system.
  • Massachusetts combines iGaming legalization with a ban on sweepstakes casinos by March 16, 2026.

Building Momentum for Ban in 2026: A Detailed Look at Proposed Legislation

In the ongoing debate over the regulation of gambling activities, several states are poised to take significant steps towards banning sweepstakes casinos. This move comes as a result of widespread concerns regarding the fairness and legality of these casino-style games that often operate under dual-currency systems.

Indiana’s Approach: A Narrow Scope on Dual Currency Systems

The debate in Indiana centers around House Bill 1052, which aims to ban sweepstakes casinos through a direct focus on “dual currency” systems. These systems typically involve the issuance of non-redeemable game coins (GC) that players can use to acquire redeemable sweepstakes coins (SC), thereby encouraging further spending within these establishments. Indiana’s approach could potentially make it easier for the bill to pass by addressing a more specific aspect of the issue rather than broader regulatory measures.

The hearing on Tuesday, January 10, 2026, highlighted the debate between outright bans and increased regulation or taxation. The lack of a vote during this initial session suggests that additional hearings are expected later in the legislative process to gather more input from stakeholders.

Maine’s Comprehensive Legislation

Maine’s Joint Veterans and Legal Affairs Committee has scheduled a hearing on Legislative Document 2007 for January 14, 2026. This bill goes beyond addressing dual-currency systems by providing a detailed explanation of how sweepstakes casinos operate. It asserts that these casinos “encourage” players to buy non-redeemable GC in order to acquire redeemable SC, which the Maine Gambling Control Unit can determine as part of its regulatory powers.

The bill’s comprehensive approach allows for greater flexibility in regulating any modified versions of current sweepstakes casino models. This could make it a model for other states looking to address similar concerns within their own gambling industries.

Massachusetts: A Broader Ban Within a Larger Framework

In Massachusetts, the Joint Economic Development and Emerging Technologies Committee is scheduled to decide by March 16, 2026, whether to move forward with House Bill 4431. This bill seeks to legalize real-money online casinos while simultaneously banning sweepstakes casinos. The debate surrounding this legislation will likely focus on issues of revenue generation for the state and responsible gambling practices.

Massachusetts’s approach is unique in that it combines two major aspects of the gambling industry: iGaming legalization and a ban on a specific type of casino. This dual-purpose bill reflects the broader policy considerations states are grappling with as they navigate the evolving landscape of online gaming.

Florida’s Comprehensive Legislation

In Florida, House Bill 591 takes an expansive approach to regulating online gambling by defining illegal online gambling more broadly. The bill would ban any casino-style games where players can win money or “any other thing of value.” While it does not explicitly mention sweepstakes casinos, the broad definition could encompass these types of operations.

The bill also includes provisions for the Seminole Tribe of Florida, which has a compact with the state to be the exclusive gaming provider. This provision opens up possibilities for the tribe to offer its own sweepstakes-style casino under certain conditions, potentially complicating efforts to ban such operations entirely within the state.

Overall, these proposed bans on sweepstakes casinos in 2026 reflect a growing trend among states to address concerns over fairness and legality in gambling activities. As more states consider similar legislation, it will be crucial to monitor how these bills are debated and enacted in order to understand their potential impact on the broader gambling industry.