Just two weeks ago, we reported on the ‘sweepstakes casinos’ offering alternative gaming options for players in California and New York, and now we’ve found another brand taking a different approach in these states.
Gains Casino recently introduced a new system for players in CA and NY, allowing them to receive Sweeps Coins (SC) alongside physical merchandise purchases rather than through traditional Gold Coin (GC) bundles.
The SC received through ‘Merch Mode’ can then be played as normal and redeemed for cash prizes – great news for sweeps fans.
How Does Gains’ Merch Mode Work Exactly?
Due to changes in the law, players in California and New York don’t have access to the usual GC + SC purchase system. Gains’ current rules, which were updated this month, say that Gold Coin purchases aren’t available in these states.
Instead, Gains-branded merchandise purchases now come with SC as a free promotional bonus. For example, players can spend $25 on a sticker and receive 25 SC, while a $100 purchase comes with a trucker hat and 100 SC.
The SC are credited automatically after the merchandise payment is completed, so players don’t have to wait for the physical product to arrive at their address before receiving the SC. These coins can then be used to play casino-style games as normal. Experiences in other states where Gains operates won’t be affected either.
But Why Is Gains Changing Its Setup?
The change comes as various sweepstakes operators continue to rethink their models in the Golden State and the Empire State.
California’s AB 831 and New York’s S5935A introduced new restrictions on the traditional dual-currency sweepstakes model at the end of last year. This is where players use one currency for gameplay (GC) and another currency (SC) that can be redeemed for cash prizes.
The changes made CA and NY two of several states to ban the dual-currency format in 2025. Montana, Connecticut, New Jersey, and Nevada also passed laws targeting sweepstakes casinos that year, creating one of the biggest shake-ups the industry has seen. More states enacted bans in 2026 too.
We even saw Chumba’s operator VGW agree to an $8 million settlement with New York this month, bringing an investigation into its sweepstakes casino operations to an end.
And since restrictions were introduced, we’ve seen operators experiment with a range of different models for offering sweepstakes-style gaming in these markets.
VegasBuilder uses Builder Spins for its virtual city-building feature, while Candy Coins has Battle Passes for its competitive Battle Arena. There’s Acebet.cc too, where players in CA, NY, and other restricted states can buy packs of cards bundled with free SC – a model that’s fairly similar to Gains’ Merch Mode.
By tweaking their models in these ways, it’s thought these brands are able to avoid the GC/SC dual-currency ban.
Author: Joseph Allen
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