TL;DR: Sweeps casinos keep climbing toward $7B to $11B in 2025 revenue, yet rulemaking and enforcement ramped up. Montana, Connecticut, and New Jersey enacted bans. New York and Louisiana sent 60+ cease-and-desists, and big brands trimmed state footprints. Growth continues, but compliance now separates leaders from laggards.
Sweeps gaming keeps expanding nationwide, helped by low friction and reach across many states. Forecasts from industry research and vendor reports place 2025 revenue anywhere from just under $7B to about $11B, a range that rivals regulated iGaming turnover.
Lawmakers answered with new statutes. Montana SB 555 reworked the definition of internet gambling to capture dual-currency casino lookalikes. Connecticut PA 25-112 directly targeted online sweepstakes that simulate casino play. New Jersey A5447 outlawed the model statewide. Operators now need precise geofencing, stronger KYC, and clear coin-economy disclosures for the remaining map.
Enforcement also accelerated. New York’s AG identified 26 platforms and sent cease-and-desist letters, coordinating with the state gaming commission. Louisiana’s board followed with 40+ additional letters. Together, those moves alone top sixty actions, a loud signal that gray-area operations carry real risk.
Leaders adapted fast. VGW wound down activity in New York and pared exposure elsewhere, a pivot that hints at the next phase where scale comes from disciplined, state-by-state execution rather than blanket reach.
My read: the model still offers real consumer appeal and durable unit economics, but the winning playbook now treats compliance like product. Teams that invest in licensing conversations where available, payments hygiene, AML controls, and transparent terms keep momentum while others shuffle. I’ll keep tracking every bill, ban, and market exit so readers always know where sweeps gaming truly stands.
Sources:
https://sccgmanagement.com/sccg-articles/2025/7/3/insights-from-the-waterhouse-vc-june-update-sweepstakes-grey-area-green-numbers/
https://www.scientificgames.com/media/2imjiumj/dim_july-16-2025.pdf
https://legiscan.com/MT/text/SB555/id/3220635/Montana-2025-SB555-Enrolled.pdf
https://cga.ct.gov/2025/ACT/PA/PDF/2025PA-00112-R00SB-01235-PA.PDF
https://legiscan.com/NJ/text/A5447/id/3179505
https://ag.ny.gov/press-release/2025/attorney-general-james-stops-illegal-online-sweepstakes-casinos
https://sbcamericas.com/2025/05/27/vgw-shutters-sweepstakes-in-new-york/
https://igamingbusiness.com/legal-compliance/sweepstakes-sites-legislation-regulation-crackdown/