As of mid-2026, sweepstakes casinos cannot legally operate in 14 or more US states, with bans accelerating sharply over the past 18 months. If you're wondering whether a fun prize casino is available where you live, the table below gives you the fastest answer.
Which States Have Banned Sweepstakes Casinos?
The list of restricted states has grown considerably since 2024. Montana became the first state to pass an explicit statutory ban. California followed, which alone wiped out roughly 20% of the industry's US revenue. New York Attorney General Letitia James announced a statewide ban on June 6, 2025, and the legislature passed SB 5935, which was signed into law in December 2025. Michigan took Virtual Gaming Worlds to court, leading VGW to withdraw Chumba Casino and LuckyLand Slots from the state in April 2025 — I cover what happened in more detail in the Chumba Casino review.
Louisiana and Tennessee replaced attorney general enforcement with dedicated statutes signed in May 2026. Oklahoma enacted SB 1589 via veto override, with a ban taking effect November 1, 2026. Idaho and Washington enforce pre-existing gambling laws against sweepstakes operators rather than passing new ones. Indiana, Maine, Connecticut, New Jersey, Nevada, Delaware, and Rhode Island round out the list of states where most fun prize casino platforms have stopped operating.
State-by-State Status: Quick Reference Table
| State | Status (mid-2026) | Key Detail |
|---|---|---|
| California | Banned | Explicit ban; ~20% of US industry revenue lost |
| New York | Banned | SB 5935 signed December 2025; AG enforcement since June 2025 |
| Michigan | Banned | VGW withdrew Chumba and LuckyLand April 2025 |
| Montana | Banned | First state with explicit statutory ban |
| Oklahoma | Ban effective Nov 1, 2026 | SB 1589 passed via veto override |
| Louisiana | Banned | Dedicated statute signed May 2026 |
| Tennessee | Banned | Dedicated statute signed May 2026 |
| Florida | Legal with cap | Maximum redeemable prize is $5,000; prizes above that are void |
| Connecticut | Banned | Explicit ban enforced |
| Nevada | Banned | Explicit ban; real-money online poker permitted separately |
| New Jersey | Banned | Explicit ban; licensed real-money casinos operate via NJ DGE |
| Idaho / Washington | Restricted | Pre-existing gambling laws applied to sweepstakes operators |
| Most other US states | Generally eligible | No explicit ban; verify before funding an account |
What About Funrize Specifically?
Funrize Casino's own restricted-state list includes CA, CT, DE, ID, IN, LA, MI, MT, NV, NJ, NY, RI, TN, WA, WV, and WY. That's a longer list than the industry-wide bans alone, because individual operators sometimes exit additional states voluntarily. Read the full Funrize Casino review for a breakdown of how the platform handles payouts and whether it's worth signing up from an eligible state.
Why Are So Many States Restricting Fun Prize Casinos?
The sweepstakes model is legal at the federal level because it eliminates "consideration" — you never have to pay to enter or win. But state attorneys general in several jurisdictions argue the model closely resembles gambling in practice. There's no single federal regulator overseeing these platforms; enforcement is entirely state-driven. The rapid legislative activity in 2025–2026 reflects that pressure intensifying.
For context on how the model actually works and why it differs from a licensed real-money casino, see the guide on sweepstakes casinos versus real-money casinos. For a deeper look at the dual-currency structure that makes the whole thing legal, the how sweepstakes casinos work guide walks through it step by step.
Florida: Legal but Watch That Prize Cap
Florida is eligible, but players there face a hard $5,000 prize cap per redemption — any prize above that amount is void under state law. If you're in Florida and playing platforms like LoneStar Casino, which partners with major game studios, keep that ceiling in mind before chasing larger prize targets.
Is Your State on the List?
If your state isn't named above as banned or restricted, you're likely eligible — but the legal landscape is shifting fast. Always verify your state's current status before purchasing coins or building a balance. Check our ranked list of the best fun prize casinos for operator-by-operator availability notes, and review how to spot illegal or scam operators before signing up anywhere. For additional background, casino.org's Funrize review also covers restricted states.
Must be 18+ (21+ at some operators). Gambling problem? Call 1-800-GAMBLER.