7 Sweepstakes Casinos That Have Gone Under

The sweepstakes casino scene has seriously heated up over the last year or two — it’s turned into a full-on battlefield. Not only are new platforms jumping in, but the established groups are popping out clone casinos as part of their game plan.

In a cutthroat space like this, it’s only natural that some sweepstakes casinos won’t make it. Plus, you’ve got a few fly-by-night operations trying to cash in on the lack of regulation, looking to make a quick buck off unsuspecting players.

We’ve flagged seven of these so-called “failed” operators — casinos that flopped in the sweepstakes space, either because they couldn’t keep their cash flow or because they got caught doing shady stuff that players picked up on fast.

Names? Scratch Carnival, Loyal Royal, FendOff Sports, Horseplay (b spot), Smiles (Shweeps), SweepSlots, and Scrooge.

Scratch Carnival (Closed)

Scratch Carnival hit the scene in 2020, way before the sweepstakes surge really went mainstream. It was operated by Virtual Gaming Worlds — the same team behind the mega-successful Chumba Casino, so they had some serious clout in the space.

For a while, it had a good thing going. But, if you ask me, it boxed itself in by going all-in on scratch cards. Scratchies are fun, no doubt, but they just can’t hold up an entire platform. Scratch Carnival had around 20 variations of scratch cards, where players using Sweeps Tickets could score real prizes.

The site’s other big attraction was its Sweeps Draws — raffle-style events where players could win guaranteed prizes, usually between $500 and $2,500, awarded to one lucky random entry.

This was a mobile-first platform through and through. It even rolled out native apps for both iOS and Android, making it easy for players to jump in on the go.

Loyal Royal (Closed)

Loyal Royal made its debut in 2022, casting a pretty wide net by welcoming players from almost every state except Washington and Idaho. When it was around, it would hand out a no deposit bonus of 2,000 Loyal Points and 2.5 Royal Rubles, a decent offer for the time.

The games were all Ruby Play creations, with just over a dozen exclusive slots and poker games. This gave the platform a bit of a unique vibe since you couldn’t find these releases at many other casinos.

It kept things lively on the promo front, too. One of its signature giveaways let players earn a prize draw entry every time they spent $10 or more, and the platform would then pull a few random winners for small prizes.

For payments, it covered a lot of ground. Players could cash in using credit/debit cards, PayPal, and bank transfers, with withdrawals typically hitting accounts within 3–5 days.

Overall, Loyal Royal was a decent casino. It just goes to show how ruthless this space can get.

FendOff Sports (Closed)

FendOff Sports was another sweepstakes project by Virtual Gaming Worlds, and it launched in 2020 after partnering with Inspired Entertainment — a major player in virtual sports and gaming content known for its innovative virtual betting products.

The platform went for a unique angle, merging the sweepstakes model with virtual betting. It offered 14 different markets, covering everything from soccer and horse racing to basketball and car racing.

While it was up and running, FendOff Sports held big $20k Pick’em contests on social media. It also ran fun quizzes and trivia giveaways, where users could win small amounts of redeemable coins.

Why did it all go south? Hard to say, but chances are it came down to financial sustainability — it poured in big resources but just couldn’t cover its costs in the end.

b spot (now Horseplay)

Horseplay came from the remnants of b spot, one of the sweepstakes pioneers. It was rebranded with a new spin, blending horse racing with casino games. The idea was unique — using the results of horse races to determine wins in casino games instead of the usual Random Number Generator.

Yeah, it’s a bit of a head-scratcher. That’s probably why the concept didn’t catch on with many users, and it might be why Horseplay eventually pulled the plug on its affiliate program — it just wasn’t bringing in enough revenue.

To top it off, players had to deposit and wager $100 before they could cash out anything. From what other players reported, you had about a 50% shot at winning those horse race bets, which is rough, especially when you consider the RTP for slots in sweepstakes casinos is typically around 93%.

Shweeps (now Smiles)

Smiles Casino made its debut in 2024 under 10 Ten Gaming LLC. It was originally set to launch as “Shweeps” but pulled a last-minute rebrand. Honestly, that was the first sign things might be a bit shaky on its end.

It kicked things off with a decent welcome bonus for new players — 1 million Gold Coins and 5 Smile Coins. It also threw in a $2 mail-in bonus but not much else. Referral programs and social media promos? Pretty much non-existent, which puts it a step behind the competition.

As for games, Smiles offers a modest lineup of around 150 titles from BGaming and Relax Gaming. In a space where other casinos boast over 1,000 games and partnerships with 20+ providers, Smiles would need to make some major upgrades to keep up.

The banking setup isn’t doing it any favors, either. With a high minimum redemption of 100 Smile Coins, players are looking at a long grind to cash out. And even then, they have to wait 1–5 days for withdrawals — a pretty slow turnaround in today’s market.

SweepSlots (Blacklisted)

Just Google SweepSlots, and you’ll find a big Subreddit where players are tearing this casino apart. One user mentioned waiting 19 days for a small redemption, while another described his whole experience as “nightmarish”. Not exactly confidence-inspiring stuff.

SweepSlots is one of those casinos that seems to have gone rogue overnight, stopping payments to players and partners without warning.

On the surface, it looks pretty solid. It has over 500 games from reputable providers like Playson and Evoplay. The lineup is decent, covering slots, instant games, and even RNG table games like blackjack.

Its welcome bonus looks inviting, too: 5,000 Gold Coins and 5 Sweeps Coins, along with double daily bonuses. One is a fixed amount, and the other is a wheel spin you can use every few hours.

But let’s be real — no matter how enticing the bonuses look, they’re worthless if you can’t actually cash out your winnings.

Scrooge (Blacklisted)

The most commented Scrooge subreddit says it all — it’s literally called “Avoid Scrooge like the plague”. Honestly, as harsh as it sounds, I can’t disagree.

Launched in 2023 by Scrooge LLC, this casino comes with plenty of red flags. For starters, it’s almost impossible to find solid background info on it — always a telltale sign that things might be off.

Scrooge offers a small welcome bonus: 150,000 Gold Coins and 250 Sweeps Tokens, which isn’t much by today’s standards (keep in mind, 100 Sweeps Tokens = $1).

Its game selection is also pretty limited, with around 200 titles from a few providers. The variety is alright, with slots, fish games, table games, and a few arcade options thrown in. The minimum redemption at Scrooge is $100, which is among the highest in the market.

With so many better and more reliable options out there, I’d say it’s worth your time to look elsewhere.