As States Crack Down, Major Sweepstakes Casino Operators Roll Out New Brands

As states crack down on sweepstakes casinos and the US market shrinks, major operators are rolling out new platforms to offset revenue losses and preserve their market share.

The strategy reflects a broader shift across the sector: instead of slowing down in response to state-level bans and enforcement, several operators are accelerating their expansion — launching new brands even as access to key jurisdictions becomes increasingly limited.

Operator Expansion Comes Amid Shrinking Market

Despite mounting regulatory pressure, major sweepstakes casino operators have introduced new platforms in recent months.

Arguably the most well-known company, VGW, which operates Chumba Casino, LuckyLand Slots, and Global Poker, has recently initiated a significant reshaping of its portfolio.

The company is preparing to launch two new sites: LuckyLand Casino and United Slots. Over the past two weeks, both sites have undergone upgrades, including pre-registration and user information, like terms and conditions. That suggests that launches are imminent.

VGW is also likely to discontinue its LuckyLand Slots platform, as it no longer appears under the company’s Malta license.

A1 Development, which operates Funrize, Fortune Wheelz, FunzCity, NoLimitCoins, and TaoFortune, has recently launched the Stormrush platform. However, the company may be undergoing a larger expansion than initially appears.

Another operator, UTech Solutions, has launched six platforms in the last several months: Scarlet Sands, MrGoodwin, VegasWay, SweepShark, JackpotRabbit, and Playtana. While unconfirmed, UTech is likely affiliated with A1.

That’s because both have near-identical terms and other site features, and both are registered at the same address. While many companies might be registered at the same address, UTech’s mailing address (including the personal mailbox number) is the same as the one A1 used until recently.

Another major operator, Blazesoft, known for registering each brand under a separate entity, is also expanding. Until recently, the company operated Fortune Coins, Zula Casino, Sportzino, and Yay Casino. Now, it has launched American Luck and is preparing to add Luck Party to its ecosystem.

Furthermore, MW Services Limited, the operator behind WOW Vegas, has also expanded this year. In April, it launched Rolla Casino, and in November, it introduced MetaWin.us.

Regulatory Pressure Driving Expansion

The surge in new platform launches is not a sign of a growing market — it is a reaction to accelerating legal pressure.

The most significant blow to sweepstakes casino operators’ revenue came with California’s AB 831, which bans dual-currency sweepstakes casinos, effective January 1, 2026. The law extends liability to vendors, affiliates, processors, and service providers. Several operators have already withdrawn from the state, which, according to some reports, represents nearly 20% of the total US revenue for the sector.

California’s ban is part of a wider pattern. This year, five other states passed prohibition legislation: Montana, New York, New Jersey, Connecticut, and Nevada. These states join the long-standing prohibited jurisdictions of Idaho, Michigan, and Washington.

In addition to legislative bans, several other states have effectively pushed sweepstakes casinos out through enforcement actions. Louisiana and West Virginia now account for over 40 platform exits.

Similar efforts in Tennessee, Maryland, and Delaware have led to over 30 sweepstakes casinos exiting those states. Others that have targeted the unregulated sector include Minnesota, Arizona, and Mississippi.

Furthermore, sweepstakes casinos face over 100 class action lawsuits nationwide. Hotspots include Alabama and Utah, which have strict anti-gambling laws.

Attempt to Rebuild Market Share & Revenue

Collectively, these new launches and expanding exits point to a market under structural stress. Operators are introducing new platforms as established ones lose access, or users seek fresh alternatives. Also, by expanding their portfolio, they reduce the risk of consolidating revenue around a single or a few flagship brands.

However, while operators are rolling out new brands at a rapid pace, the market’s trajectory is moving in the opposite direction. Enforcement actions are accelerating, state-level prohibitions are spreading, and the overall addressable market continues to shrink with each legislative session.

That tension is only likely to intensify in 2026. Operators may continue to launch new platforms to replace lost revenue. However, the regulatory wave driving the contraction is still building, with more lawmakers and gaming regulators starting to put pressure on the unregulated sector.