When sweepstakes casinos leave a state, there’s usually an obvious reason. Maybe a wave of cease-and-desist orders lands, or a regulator issues guidance, or often a new anti-sweeps law has taken effect.
However, the situation in Iowa is slightly different. A growing number of sweepstakes casino operators have either exited IA entirely or asked affiliates to stop marketing to residents there, and that’s despite no clear reason.
Among the operators to have fully left Iowa are:
Of these, the major name is High 5, with the others being relatively small brands or new entrants into the market.
Speaking of new entrants, Fortune Purple launched earlier this month with Iowa as a restricted state from the off.
To be clear, the vast majority of sweepstakes casinos are still fully ‘in’ Iowa for now, including major brands like McLuck, WOW Vegas, and Stake.us, but could that be about to change?
Why Iowa?
While we’re not sure of the exact reasons behind the changes in behavior here, the most obvious explanation is a link to the state’s recent legislative activity, specifically Iowa Senate File 2289.
This bill was signed into law by Governor Kim Reynolds last month after moving through the legislature over roughly three months. It went on to pass both the Senate and the House and is set to bring about a new power for the state gaming regulator. Yes, thanks to it, the Iowa Racing and Gaming Commission (IRGC) will soon have the authority to issue cease-and-desist orders to any operator it deems to be offering illegal gaming without a license.
However, the strange thing here is that the bill doesn’t take effect until July 1, 2026. It doesn’t mark sweepstakes casinos as definitively illegal either – it just catches Iowa up to most other states where the regulator has this C&D power.
Speaking to the Iowa Capital Dispatch in January of this year, gaming commission administrator Tina Eick admitted that the regulator had no “clear authority” to take action at that time. Rather, it could only recommend that players are alert to illegal sites when gaming online.
And we wouldn’t expect the regulator to jump the gun and send out C&Ds before the law changes on July 1.
Therefore, it’s likely that the operators are anticipating a crackdown before these new tools become available.
A Growing Trend
All that being said, Iowa isn’t the first state to see sweepstakes operators take a more defensive approach without a clear reason.
Over the last 18 months, brands have restricted access in states viewed as higher risk, even if there’s been no concrete evidence available. The reality is that each operator has its own intel and, usually, its own legal counsel advising them on how to best position themselves.
So for now, Iowa becomes one of these jurisdictions and will likely remain something of a watch-list state for the sweepstakes industry.
In terms of traffic, SweepsKings rates IA as firmly in the middle band for signups at sweepstakes casinos, so it’s by no means a major demographic for the industry on the level of California or New York. On the other hand, it’s not a fully minor player either, and with multiple brands pulling back at roughly the same time, it is becoming increasingly clear that many operators see Iowa as a state worth treading carefully in.
To be clear, Iowa has not brought in a definitive ban on sweepstakes casinos and the dual-currency format like some other states this year. That could come next year perhaps. For now, the vertical sits in a gray area, like it does in most places.
But yes, we have seen clear anti-sweepstakes bills pass in Indiana, Maine, Oklahoma, Louisiana and Tennessee in 2026, with most set to take effect in the coming weeks. So we can expect more operators to withdraw or restrict access here if they haven’t already, but in most cases, these moves aren’t unexpected – there are clear legislative reasons behind them.
Author: Michael Fatouros
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