High 5 Casino and Stake.us have recently updated their terms of service to restrict access in several additional states. The pattern seems to be an exit from states with regulated real-money online casinos, which could signal the beginning of a trend if other sweeps casinos follow these two out of iGaming states.
On February 18, High 5 Casino ceased accepting new players from Connecticut, Delaware, New Jersey, Pennsylvania, Rhode Island, and West Virginia. Players from those states have until March 14 to redeem any eligible Sweeps Coins before they lose access to the site.
Two days later, Stake.us updated its “excluded territories” list. Like High 5, the list of exclusions now includes most states where real-money online casino games are legal: Delaware, New Jersey, Pennsylvania, Rhode Island, and West Virginia. Notably, Connecticut is absent from the list. For now, it is the only iGaming state where Stake.us continues to operate.
Both sites exited Michigan in late 2023—along with the rest of the sweepstakes industry—after the state’s gambling regulator threatened legal action.
Neither operator has provided details on the decision to pull out of the states mentioned above. However, the sweepstakes sector has faced increasing scrutiny from lawmakers and regulators this year. That may be in part because of anti-sweeps messaging by the American Gaming Association (AGA). The AGA, a trade group representing real-money retail and online gambling operators, has been vocal in comparing sweeps casinos to unlicensed offshore casinos due to their lack of regulatory oversight.
However, while offshore real-money casinos are explicitly illegal under US law, sweeps casinos are play-money social casinos offering prizes under federal sweepstakes law. That makes them legal except where individual states have ruled otherwise.
Several sweeps casinos exit iGaming states
High 5 Casino and Stake.us are among a growing number of sweeps operators adjusting their eligible jurisdictions. B-Two Operations Limited, the parent company of McLuck Casino, Hello Millions, Jackpota, SpinBlitz (formerly Scratchful), and Mega Bonanza, has also recently revised its policies. All sites no longer accept Delaware and West Virginia players, while Mega Bonanza also restricts players from New Jersey.
Meanwhile, Virtual Gaming Worlds, the parent of Chumba Casino, LuckyLand Slots, and Global Poker, exited Connecticut last fall. The company also raised its minimum age to 21, likely a responsible gaming measure to appease some critics. Other sweeps casinos that have restricted iGaming states include:
- Carnival Citi: Pennsylvania and Rhode Island
- Jefebet: Connecticut, Delaware, New Jersey
- Luckybird.io: Delaware and Connecticut
- Modo.us: Connecticut, Delaware, New Jersey, Pennsylvania, Rhode Island, West Virginia
The AGA calls out sweeps casinos
As sweeps and social casinos grow in popularity, they also face criticism. While they’re not considered gambling sites, some critics believe the inclusion of sweepstakes with cash prizes is the same as unregulated gambling.
On February 19, during its State of the Industry webinar, the AGA called out sweeps casinos for deploying “legal acrobatics” to avoid classification as gambling. AGA President and CEO Bill Miller argued that while these platforms exploit loopholes, they still offer gambling products without oversight, taxation, or responsible gaming features.
In response, the Social and Promotional Games Association (SPGA) issued a statement. The SPGA is a trade group formed by sweeps operators, including High 5, to bolster the image of their industry. The association argued that sweeps operators are legal in most states, operate under a “well-established” legal framework. It added that the platforms do not directly compete with real-money operators. However, the recent exits from iGaming states, including by SPGA member High 5 Casino, suggest that some sweeps casinos would prefer to avoid scrutiny and potential regulatory challenges and focus on states where real-money gambling is unavailable.
Meanwhile, one lawmaker in New Jersey is offering a different approach to solving the issue. In January, Assemblyman Clinton Calabrese introduced a bill to regulate sweeps casinos as real-money gaming operators. Under the proposal, sweeps operators would have to partner with Atlantic City casinos and follow New Jersey gambling laws. But even if the bill passes, it’s unknown whether sweeps operators would agree or just exit the state.
