It wasn’t that long ago that sweepstakes casinos were available in virtually all US states. However, that all changed in late 2023 when the Michigan Gaming Control Board (MGCB) explicitly banned them. The ban came after a 2-year investigation into Golden Hearts Games, a popular sweepstakes casino.
Gaming regulators concluded that Golden Heart Games was operating an illegal online casino. This announcement sent shock waves through the industry, and many top brands quickly excited the market.
Sweepstakes casinos drew the ire of the Department of the Attorney General because Michigan is one of the few states with legal online casinos. Licensed operators pay up to 28% in tax on gross gaming revenue (GGR), which resulted in $354 million in revenue for the state government in 2023. Sweepstakes casinos were operating without a license and not paying any iGaming taxes.
With so much money at stake, it’s no wonder that the Michigan authorities sought to protect its regulated iGaming market. The only surprising thing is it took them so long to act.
Since the Michigan ban, sweepstakes casinos have started playing it cautiously in other states that have regulated iGaming, like Pennsylvania, Delaware, and New Jersey. For example, Jackpota and Mega Bonanza have pulled out of all those states while other operators are still accepting players but not openly.
Connecticut has also been added on the restricted states list of VGW social casinos – Chumba, LuckyLand, and Global Poker. Lastly, a new social casino we reviewed, SunSpin, has restricted access to West Virginia residents as well.
It seems likely that more gaming control boards will follow Michigan’s lead and implement bans on sweepstakes casinos. We’ll keep you posted on the next state to outlaw social gaming sites!