Chumba, Modo Set for Daytona Debuts as Sweepstakes Casinos Face Ongoing Scrutiny

Historic firsts aside, whether or not their drivers take home a prize, even in a ‘best-case’ scenario, the road ahead for US sweepstakes is bumpy. Critics argue that sweepstakes sites are effectively real-money gambling, as players can typically buy in-game coins and later redeem tokens for cash or equivalents.

Nationwide, sweepstakes operators, including Chumba’s and Modo’s respective parents, VGW and ARB Interactive, have and continue to face an uptick in legal challenges. Meanwhile, regulators in several states have issued cease-and-desist orders to operators active in their states.

At the same time, regulatory pressure is mounting. In 2025, six states moved to ban sweepstakes casinos. At least a dozen more have introduced bills to ban the platforms or revise gambling regulations to bring operators under enforcement this year.

It will likely be a while before sweepstakes operators’ legal and regulatory troubles fade into the rearview. For now, it appears they’re making the best of a difficult situation.

Expansions follow first-year success  

For both Modo and Chumba, 2026 started with the opportunity to deepen relationships with their respective teams, which began in 2025.

On Jan. 6, Chumba Casino and 23XI Racing announced they’d expanded their earlier partnership to cover more races, including Daytona and The Clash exhibition race. Besides backing drivers Tyler Reddick (No.45) and Bubba Wallace (No.23), the partnership will offer fans the chance to win prizes and VIP experiences. 

At the time, Ben Whitford, VGW’s chief marketing officer, said the partnership had an “incredible first year” that VGW was excited to build on.

“Expanding our presence with Tyler and continuing our support of Bubba allows us to connect with NASCAR fans in bigger and more engaging ways, from on-track moments to unforgettable fan experiences and giveaways. We’re proud to be part of 23XI’s journey and look forward to another exciting season together.”

Steve Lauletta, 23XI team president, echoed Whitford’s sentiment.

 “Last year we had a great reception from both Chumba Casino and NASCAR fans, and we look forward to another impactful year of growth and success on and off the track.”

Soon after, on Feb. 3, Spire Motorsports and Modo Casino followed suit — announcing Modo as Michael McDowell’s (No.71) primary Daytona sponsor. Throughout the season, Modo will also appear on the team cars of McDowell, Daniel Suarez (No. 7), and Carson Hocevar (No. 77) at several events.

In that announcement, Spire’s president, Bill Anthony, said Modo brought noticeable energy to NASCAR.

“Beyond the bold paint schemes, they’re focused on building a social gaming platform that appeals to a broad audience. That kind of approach, showing up, engaging authentically, and delivering a compelling experience, is how brands earn lasting loyalty. We’re excited to expand the partnership and help Modo keep growing its community throughout 2026.”

Legal uncertainties remain unsettled

Setting aside the buzz, as legal and regulatory pressures on sweepstakes continue to mount, how long can operators sustain that momentum? 

Several celebrity promoters and brand partners are already facing legal consequences for promoting sweepstakes products.

Canadian rapper Drake, a prolific gambler, is named in several lawsuits related to his partnership with Stake.us, including a RICO class action filed in Virginia. In the latter case, the plaintiffs accuse Drake and online streamer Adin Ross of promoting an illegal platform disguised as a “social casino.”

Other celebrities recently targeted include Ryan Seacrest and slots influencer Brian Christopher. 

In August 2025, Seacrest faced a lawsuit (since dismissed) related to his association with Chumba Casino. That same month, Christopher, who streams to over 750,000 YouTube subscribers, was sued for promoting other VGW products.

Given sweepstakes’ legal precarity, could partners like 23XI and Spire get cold feet?

Gambling Insider asked ARB and Spire for comment. Spire never responded. Initially, a PR firm affiliated with ARB responded, but our question went unanswered.

We also contacted VGW and 23XI.

Notably, in addition to existing pressures, the recent arrest of VGW’s now-former CEO and executive chairman, Laurence Escalante, could potentially complicate ongoing regulatory and business affairs. 

While VGW initially replied, it declined to comment on the racing partnership. Regarding the Escalante matter, VGW reiterated that it cannot comment on legal matters.

Likewise, 23XI never responded. 

However, in an email sent to Gambling Insider a few days before Escalante’s Jan. 26 arrest, the team said it is “delighted to partner with Chumba and thrilled to have [them] with our team for another year.”