Sweepstakes Casino Monthly Update for May 2026: Tennessee, Louisiana, Oklahoma Bans, Iowa Enforcement

In the past month, Tennessee, Louisiana, and Oklahoma enacted new laws targeting sweepstakes casinos, while Iowa passed an enforcement bill that could cover the sector. At the same time, operators continued to exit or restrict access in states such as Illinois.

This monthly tracker highlights key operator exits, legislative developments, and enforcement trends shaping the sweepstakes casino landscape.

Exits and Reentries in May

Since Gambling Insider’s April update, multiple casinos have adjusted their terms and conditions, with Tennessee and Illinois increasingly being added as restricted territories.

At the end of April, Tennessee lawmakers passed a bill banning dual-currency platforms, which Gov. Bill Lee signed into law last week. Meanwhile, Illinois regulators sent cease-and-desist letters to 65 operators, and an increasing number of them have started complying.

A few operators have also started to exit Indiana, which was the first state to enact a ban on sweepstakes casinos this year.

Notable exits and reentries:

• Stake.us: Added Illinois as restricted territory
• Pulsz and Pulzs Bingo: Changed Indiana to Gold Coin play only
• WOW Vegas, Rolla, MetaWin: Added Illinois to Gold Coin-only states
• Punt and Chanced: Exited Illinois
• Funzpoints: Added Tennessee to Gold Coin-only states
• Smiles Casino: Exited Delaware
• Ruby Sweeps: Exited Indiana
• Dara Casino: Exited Illinois
• Sweeps USA: Exited Tennessee and Washington D.C.; reentered Kentucky
• The Boss: Exited Illinois
• Lunaland: Removed California, Connecticut, Louisiana, Montana, New Jersey, and New York as ineligible jurisdictions
• Zoot: Reentered Maryland
• Lavish Luck: Added Tennessee as restricted territory
• Splash Coins: Exited Tennessee
• Onyx Odds: Exited Illinois

Additionally, Gold Treasure Casino emailed customers that it will “temporarily” shut down while it reevaluates its future strategy.

Legislative Tracker

The past month saw several states enact legislation targeting the sweepstakes casino sector.

Tennessee: Ban Enacted

As mentioned above, Tennessee became the latest state to ban online sweepstakes casinos last week with Gov. Lee’s signature of SB 2136.

The law defines “online sweepstakes games” as internet-based platforms that use virtual or dual-currency systems that allow users to obtain digital currency through purchases, bonuses, or promotions and then exchange it for prizes or cash equivalents.

The measure took effect immediately upon Gov. Lee’s signature.

Louisiana: Two Sweeps Measures Signed

Last week, Louisiana Gov. Jeff Landry signed two sweepstakes-related bills, HB 53 and HB 883.

HB 883 directly amends the state’s gambling-by-computer statute to cover online and mobile games that simulate gambling activity and use dual-currency systems. HB 53 adds certain gambling crimes, including “gambling by electronic sweepstakes device,” as predicate offenses under Louisiana’s racketeering law.

Both measures become law on August 1.

Oklahoma: Ban Enacted After Veto Override

Earlier this month, Oklahoma lawmakers passed SB 1589. Then they overrode Gov. Kevin Stitt’s veto, enacting a ban on “online casino games” involving a “representative of value,” including dual-currency systems used by sweepstakes casinos.

The law takes effect on November 1.

Iowa: Enforcement Bill Enacted

Iowa Gov. Kim Reynolds signed SF 2289, expanding the Iowa Racing and Gaming Commission’s authority to pursue unlicensed gambling operators, including those offering “illegal sweepstakes.”

Unlike Tennessee, Louisiana, and Oklahoma, Iowa did not pass a direct dual-currency sweepstakes ban. Instead, the law gives regulators clearer authority to issue cease-and-desist orders and seek injunctive relief against unlicensed operators.

The measure has dual effective dates: partially on May 15, with the remaining provisions going into effect on July 1.

Minnesota: Senate Effort Failed

One state where sweepstakes legislation ultimately failed was Minnesota. SF 4474 passed the Senate but failed to gain traction in the House before the legislative session adjourned on May 18.

SF 4474 would have prohibited online sweepstakes games that use dual-currency payment systems and would have allowed players to exchange currency for prizes, cash, or cash equivalents.

Minnesota joins Florida, Maryland, Massachusetts, Mississippi, and Virginia, where sweepstakes ban bills ultimately failed.

Where Are Sweeps Casinos Banned?

The 2026 sweepstakes casino ban map has expanded quickly.

Indiana and Maine had already enacted direct bans earlier this year, which became effective in July.

Tennessee, Louisiana, and Oklahoma have now joined that group, while Iowa has taken a separate enforcement-focused route rather than passing a direct dual-currency ban.

Those jurisdictions join five other states (California, Connecticut, Montana, New Jersey, and New York) that enacted bans on dual-currency platforms in 2025. Nevada has not enacted a direct sweeps ban but has strengthened enforcement laws against unlicensed operators.

Additionally, Idaho, Michigan, and Washington have long been off-limits to sweepstakes casinos due to existing state laws and enforcement actions.

What to Watch Next Month

More operator exits are likely over the next month, especially from Tennessee after SB 2136 became law. Also, Iowa is worth watching to see whether regulators target sweepstakes casinos.

The majority of states have already adjourned or are near adjournment of their 2026 legislative sessions, with lawmakers increasingly focusing on the upcoming November elections, making the chances of more states joining the ban list slim.

Still, new bills may emerge in states where sessions remain open for at least several months, including Ohio and Pennsylvania. Delaware and Rhode Island remain technically active until June 30, but the limited remaining time makes major sweepstakes movement less likely.