It’s yet more bad news for the sweepstakes casino market, with Oklahoma now the latest state to outlaw the sites. 

Sweepstakes casinos like Stake.us, Chumba Casino, and other casinos on SweepsGods have become extremely popular in the US over recent years, but a growing number of states are opting to outlaw them or implement heavy restrictions. 

In Oklahoma, it’s an outright ban and players within the state will no longer be able to access sweepstakes casinos after November 1, 2026, allowing remaining operators a small window of time to exit. 

Senate Bill 1589 Gets Approval, Making Sweepstakes Casinos Illegal in Oklahoma

Over the past few months, there was confusion as to whether Oklahoma would go ahead with its proposed ban on sweepstakes casinos. 

These new casino sites have proven to be especially popular with US Gen Z players ever since the COVID-19 pandemic, allowing them to bet virtual ‘Sweeps Coins’ and win potential prizes like gift cards and cryptocurrencies in the process. 

Despite this, Oklahoma has gone ahead and passed SB 1589. 

The bill passed through the Legislature smoothly, with The Senate approving it 48-0 back in March before the House passed it 65-21 at the start of May. 

Interestingly, Oklahoma Gov. Kevin Stitt then vetoed SB 1589, putting a temporary stop to expanding the state’s gambling laws to include online sweepstakes gaming platforms that include casino-style games and dual-currency systems. 

Although he provided no explanation as to why he vetoed the anti-sweepstakes casino bill, lawmakers voted again after the veto and secured the required majority, allowing SB 1589 to become law. 

This now means that any gaming platforms in Oklahoma simulating slots, bingo, or other popular games with the chance to redeem virtual currencies for real-world prizes are strictly prohibited after November 1. 

The bill classifies violations as a Class C2 felony, so any sweepstakes operators that continue operating in Oklahoma after the new law begins could face potential fines of up to $2,000 and even jail terms. 

Why Oklahoma and Other States Are Kicking Sweepstakes Casinos Out 

Since late 2024, a growing number of states have decided to ban or heavily restrict sweepstakes casinos. 

Originally, these new casino sites were legal in almost every state and were allowed to operate freely, but recently regulatory crackdowns and evolving legal stances have changed all of that. 

California, New York, New Jersey, Indiana, Michigan, and several other states have all passed legislative bills banning sweepstakes casinos, and Oklahoma is now the latest to join the list. 

The reason behind these bans is that states are starting to view sweepstakes casinos as legitimate gambling sites, despite operators claiming not to be. 

These casinos allow players to redeem virtual ‘Sweeps Coins’ for cash prizes and other rewards, with 1 SC converting to around $1 of prizes, and states believe that this mimics real-life gambling too closely and functions as nothing more than a legal loophole. 

As a result, popular operators like Chumba Casino, WOW Vegas, and CrownCoins have become inaccessible across close to ten different states now. 

It’s highly likely that this number will increase before the end of the year, too, as Virginia, Iowa, and more are currently pushing for bans. 

SGLA Defends Sweepstakes Casinos 

The SGLA, a sweepstakes casino lobbying group represented by VGW and other big operators, isn’t happy about the recent pushback against sweepstakes casinos. 

In the media, the group has been consistently fighting the case for sweepstakes casinos, arguing that sweepstakes casinos have “been operating responsibly for over a decade” and that they are “a safe, trusted outlet for this mainstream entertainment” when compared with illegal gambling alternatives. 

The SGLA even tried to cut a tax revenue deal with Indiana, worth upwards of $20 million, when the state was pushing to ban sweepstakes casinos, but the proposed deal was ultimately declined. 

It’s not known if a similar deal was attempted with Oklahoma. 

With more states starting to implement bans against sweepstakes casinos again, it’s easy to see why the SGLA is frustrated, as these bans will almost certainly lead to revenue loss and player drops for the leading operators. 

Users Have Until November 1 to Play 

For sweepstakes casino players based in Oklahoma, they will now have until November 1, 2026 to play available games and redeem any remaining Sweeps Coins from their account balances. 

It’s expected that operators will leave well ahead of time and there will be a complete exodus before November even arrives. 

Moving forward, players will have to rely on free-play alternative sites or stop playing online casino games altogether, which will have a huge impact on the sweepstakes casino space.