U.S. Sweepstakes Regulatory Snapshot

beran.law Market Update

The U.S. regulatory environment for social sweepstakes casinos and prediction markets tightened significantly over the past month, signaling a decisive shift from debate to enforcement.

Most notably, Indiana enacted HB 1052, becoming the first state in 2026 to explicitly ban internet-based sweepstakes casinos using dual- or multi-currency models. The law takes effect July 1 and relies on substantial civil penalties rather than criminal sanctions, creating a template other states are already studying.

Elsewhere, momentum has been uneven but unmistakable. Mississippi and Florida both advanced aggressive anti-sweepstakes legislation, but procedural breakdowns at session close prevented passage. Those failures, however, came amid unanimous or near-unanimous votes earlier in the process—suggesting policy direction is clear, even where timing fell short.

Virginia moved further, advancing iGaming legalization bills that simultaneously eliminate unregulated sweepstakes models, tying future online gaming expansion to strict licensing and Lottery oversight. Maryland and Iowa continue to pursue broader enforcement authority, with Maryland targeting the sweepstakes ecosystem—including payment processors and affiliates—and Iowa favoring fast civil enforcement tools.

Meanwhile, Louisiana escalated sharply, passing a House bill that would treat sweepstakes-related activity as racketeering, enabling enterprise-level prosecutions and asset forfeiture.

On the prediction markets front, April marked a turning point. The CFTC and DOJ filed lawsuits against multiple states, asserting exclusive federal authority, while a federal appellate court blocked New Jersey regulators from enforcing state gambling laws against Kalshi. Prediction markets have now become a full-scale federalism dispute, with congressional involvement likely next.

Bottom line: As 2026 continues, the window for operating in legal gray areas is rapidly closing. Operators—and their service providers—should expect tighter definitions, broader liability, and faster enforcement across the U.S.

Beran.Law will continue monitoring these developments and advising clients as the landscape evolves.