Sweepstakes operators, particularly VGW Holdings, faced a challenging week across the United States as regulators in Louisiana and Mississippi issued widespread cease-and-desist orders. Concurrently, the New York Legislature approved a bill to ban the vertical, collectively intensifying the national crackdown on what authorities deem illegal online gambling activities.

Louisiana Targets Sweepstakes After Veto

In Louisiana, regulators issued a spate of cease-and-desist orders on Tuesday, June 17, 2025. The Louisiana Gaming Control Board (LGCB) notably issued 40 orders to various sites deemed to be operating illegally, including offshore sportsbooks, iGaming sites, and sweepstakes platforms. The LGCB directly or indirectly targeted VGW Holdings, the Australian-based sweepstakes giant that operates well-known brands such as Chumba Casino, LuckyLand Slots, and Global Poker. Louisiana sent a cease-and-desist order directly to VGW, according to regulatory announcements.

This intensified enforcement from the LGCB comes shortly after Governor Jeff Landry, on June 13, vetoed a bill (SB181) aimed at banning sweepstakes altogether. Governor Landry had stated in his veto letter, as reported by iGaming Times, that he believes the legislation covers issues already being dealt with by the LGCB and that some of its language is “overly broad.” This veto initially drew praise from the Social and Promotional Games Association (SPGA), a trade group representing some sweepstakes operators, which described Landry’s decision as a “powerful affirmation” that not all online games are gambling. The SPGA stated, as reported by iGaming Times, that “Innovation should not be met with prohibition,” and argued the vetoed legislation “blurred critical legal distinctions and risked punishing legitimate businesses that comply with well-established sweepstakes laws and offer free-to-play experiences.” A separate group, the Social Gaming Leadership Alliance (SGLA), which does include VGW, also expressed that the veto “gives all stakeholders an opportunity to pursue a sensible solution to allow Louisiana residents to continue playing online social games” and create a licensing framework. However, the LGCB evidently “saw it differently.” In a release, the LGCB called its subsequent crackdown a “show of enforcement strength.” LGCB Chairman Chris Herbert stated, as reported by iGaming Times, that it sent a “clear message” that “Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry.”

Mississippi Affirms Online Gaming Ban

Similarly, the Mississippi Gaming Commission (MGC) also issued cease-and-desist orders on Tuesday, June 17, 2025, to ten companies it deemed to be operating illegally. While the MGC’s orders were not solely targeting sweepstakes, the commission affirmed via release that there is currently no legal online gambling whatsoever in the state, including sweepstakes. The MGC clarified, as reported by iGaming Times, that “While some games might be advertised as free to play, if there is an opportunity for the player to provide consideration and win something of value, and an element of chance exists in the game outcome, it is gaming under Mississippi law.”

MGC Executive Director Jay McDaniel stated, as reported by iGaming Times, that the MGC “will aggressively pursue both domestic and offshore illegal operators” and is currently providing criminal case files to state and federal law enforcement partners for prosecution. He further asserted, as reported by iGaming Times, that “Companies like those put on notice today mislead our residents by claiming to be legal outlets, when in fact they operate illegally and without providing any tax revenue or other tangible benefit to Mississippi.” This action comes after a sweepstakes ban bill (Senate Bill 2510) passed the Mississippi state Senate in February, but was rejected by the House after it added language regarding mobile sports betting. Currently, only retail casinos and sports betting are legal in the state.

New York Legislature Approves Sweepstakes Ban

Adding to the week’s challenging developments for sweepstakes operators, the New York Legislature also on Tuesday, June 17, 2025, passed its own sweepstakes ban. The legislation, Senate Bill S5935A, cleared both chambers in less than a week, including a unanimous 141-0 vote in the State Assembly. If the bill is signed into law by Governor Kathy Hochul, New York would join Montana, Connecticut, and Nevada in enacting explicit sweepstakes bans this year.

This legislative action follows earlier enforcement. In early March, New York Attorney General Letitia James had already issued her own flurry of 26 cease-and-desist orders to sweepstakes sites operating in the state. All three of VGW’s primary brands-Chumba Casino, LuckyLand Slots, and Global Poker-were included in those actions. VGW subsequently announced in late May that it was ceasing its sweepstakes operations in New York.

New York State Gaming Commission Chairman Brian O’Dwyer stated, as reported by iGaming Times, that these “so-called ‘sweepstakes’ games are unscrupulous, unsecure and unlawful.” He added, as reported by iGaming Times, that he has been “very vocal about the need to crack down on these operations” and is “thrilled that Attorney General James has taken this significant step to eradicate the illegal gambling market,” encouraging those of legal age who wish to gamble to do so with legal operators. State Senator Joseph Addabbo also publicly supported the OAG and the Commission’s action. As reported by iGaming Times, Addabbo expressed deep concern that “At a time when illegal gambling, underage participation and identity theft are soaring, it is deeply concerning that prohibited, unregulated and unenforceable gambling entities are providing easy access to illegal gaming sites and obtaining personal information of unsuspecting New Yorkers.” He further emphasised, as reported by iGaming Times, that “These sweepstakes casinos put individuals at risk of fraud and financial exploitation. They also create dangerous pathways for gambling addiction, especially among minors.” Addabbo clarified that this action is not about removing anyone’s livelihood but rather about protecting New Yorkers and working toward a safer, regulated online gaming environment for age-appropriate individuals.

The swift and coordinated actions by authorities in Louisiana, Mississippi, and New York underscore a concerted effort to enforce state gambling laws and channel consumers towards regulated, safer gaming options, signalling a tightening regulatory environment for sweepstakes casino models across the United States.