Now Florida Turns on Sweepstakes Casinos

Florida is seriously rich pickings for the sweepstakes industry. Following California’s decision to implement a total ban by 2025, Florida stands as the second-most populated state where sweeps casinos are legal. Industry leaders, including Stake.us, Chumba, and McLuck, continue to operate in the state while the Sweepstakes Gaming Licensing Association (SGLA) lobbies for formal regulation based on the sector’s economic contributions.

The state’s current approach differs from that of California, New Jersey, and Montana, which opted for direct legislative prohibitions. Florida appears to be pursuing a more investigative route, though the ultimate outcome could be basically the same.

In Florida, legal gambling is largely restricted to tribal-operated casinos and partnerships with them. Under the current tribal compact, the Seminole Tribe holds exclusive rights to online sports betting via the Hard Rock Bet platform. Online casino games and poker remain illegal under state law, leaving sweepstakes casinos, which utilize virtual currency models, operating in a contentious legal gray area.

The industry also faces mounting pressure from the Florida Legislature. Two new bills filed for the 2025 session could drastically alter the landscape:

• HB 591: Proposes a major restructuring of gambling enforcement that could effectively ban sweepstakes-style operations.
• HB 189: Focuses on criminalizing unauthorized online wagering outside the existing tribal compact.

Florida is not the only state utilizing subpoenas to challenge the industry. Last year, West Virginia Attorney General John McCuskey issued similar notices to over 40 operators, resulting in the withdrawal of at least 20 companies from that market. Across the US, the sweepstakes model has faced a wave of restrictive measures in recent months:

• Michigan: Issued cease-and-desist orders leading to the exit of major operators.
• New York: Has maintained a strict ban, despite occasional mentions of future regulation by state lawmakers.
• Tennessee: Recent crackdowns have forced several sweepstakes entities to cease operations in the state.
• Montana: A total ban on sweepstakes casinos through legislation.
• California: Another total ban on the sweepstakes vertical.
• Louisiana: Louisiana’s Governor vetoed a total ban, then issues 40+ cease-and-desist letters using existing laws to effectively ban the sweeps industry.
• New Jersey: Gov. Phil Murphy signed A5447 into law, formally banning sweepstakes casino sites in the state.
• Iowa: Iowa regulators backed a pre-filed 2025 bill designed to give the state’s gaming commission clearer authority to pursue unlicensed gambling sites with tools like cease-and-desist letters and injunctive relief.
• Mississippi: Came close to banning sweeps casinos in 2025 before the bill stalled. A new bill is expected in 2025.
• Connecticut: Stepped up enforcement of existing laws in 2025.
• West Virginia: Issued a series of subpoenas and cease-and-desist letters last year.

Now Florida authorities have are taking a serious look at the sweepstakes casino industry, however, and that is generally considered a bad thing. Players and operators alike are now awaiting the results of the scheduled meetings and the progress of the 2025 legislative session. Worth flagging that subpoena-driven enforcement only reaches licensed sweepstakes operators with a US corporate footprint. Host-network apps like Fire Kirin XYZ, which run through independent operators with no central licensee, have stayed largely off the regulator radar so far.