Sweepstakes Casinos Face Tough Tri-State Environment as New York, New Jersey, Connecticut Crack Down

^{Once pitched as “free-to-play” alternatives to online casinos, sweepstakes casinos are facing scrutiny and legal challenges across the tri-state area. (Photo Credit: NetPhotos / Alamy)}

From big fines to hostile legislation, sweepstakes casinos had a rough week in the tri-state area to end May 2025.

Connecticut, New York, and New Jersey were each the site of bad news for the sweepstakes industry, which is facing a wave of pushback from state governments across the country

High5Games Pays $1.5 Million Fine in Connecticut

On Thursday, May 29, the Connecticut Department of Consumer Protection Gaming Division announced the terms of an agreement with High5Games, a gaming supplier that also operates its own sweepstakes casino sites. 

Under the terms of the agreement, High5Games will no longer offer sweepstakes gaming in Connecticut  via its High5Casino site. In addition, the company agreed to pay a fine of nearly $1.5 million to settle the matter, including $643,000 in restitution to individuals in the state who lost money on High5Casino.

In exchange, Connecticut has reinstated the Online Gaming Service Provider license for High5Games effective May 22, allowing it to again offer online slots for the legal online casino sites in the state. Connecticut regulators had suspended that license on March 14, 2025. 

“This case is just one example of the hard work our Gaming Division does to ensure a fair, safe and legal gaming market in Connecticut,” Department of Consumer Protection Commissioner Bryan T. Cafferelli said in a statement. “We are pleased the Connecticut consumers who were lured into placing wagers on an unlicensed platform will be made whole, and that this company has ceased operations of its unlicensed casino in Connecticut.”

Major Sweepstakes Operator Leaves New York Market

In New York, Australia-based Virtual Gaming Worlds (VGW) announced this week that it would be exiting the state ahead of an expectation that legislative restrictions on sweepstakes casinos are likely coming. Legislators in New York have floated the idea of either banning sweepstakes casinos entirely, or folding them into a regulated iGaming marketplace that would include licensed online casinos.

Users on VGW sites, including Chumba Casino, LuckyLand Slots, and Global Poker can still use Sweepstakes Coins through June 2, and will have until August 1 to redeem outstanding coins.

The decision comes as several other operators, including High5Games, have already exited New York. Companion bills in both the New York Senate and Assembly that would ban sweepstakes casinos are currently being considered in the state legislature. 

Anti-Sweepstakes Bill Moves Forward in New Jersey

Legislative action may not be far behind in neighboring New Jersey, either. On Thursday, Senate Bill 4282 was approved by the New Jersey Senate’s Government, Wagering, Tourism, and Historic Preservation Committee. The legislation would establish laws that specifically ban sweepstakes casinos, while also setting harsher penalties for operating an unlawful gambling business.

“We will not allow bad actors to exploit legal loopholes at the expense of consumers,” Sen. John Burzichelli (D-Gloucester County) said of the bill. “This bill will ensure that our laws are clear, our penalties are stronger, and that we have the tools necessary to shut down illegal sweepstakes gambling operations before they can cause further harm.”

The movement on sweepstakes casinos in these Northeastern states comes just days after Montana became the first US state to pass a sweepstakes ban following Gov. Greg Gianforte’s signing of Senate Bill 555.