RealPrize, one of the more popular options in the sweepstakes casino world, has pulled out of Louisiana, Delaware, and New Jersey. These states now join Idaho, Washington, Michigan, Montana, Nevada, New York, and Connecticut on RealPrize’s no-play list.
While the company’s terms and conditions had not yet been updated to reflect these changes, failed attempts to access the site via VPNs confirm that users won’t be able to sign up or participate in these states.
Louisiana passed a bill to ban online sweepstakes casinos earlier this year, but Governor Jeff Landry vetoed it. Despite this, the Louisiana Gaming Control Board sent cease-and-desist letters to 42 operators, including big names like Chumba Casino, LuckyLand Slots, WOW Vegas, and Golden Hearts Games.
RealPrize, owned by RealPlay Tech Inc., was not among them. However, Louisiana’s Attorney General, Liz Murrill, issued a legal opinion labeling sweepstakes casinos as illegal gambling. She warned of severe consequences, including profit forfeiture, legal action, and civil penalties.
This likely prompted RealPrize’s exit from the state, as the risks of staying outweigh the short-term gains.
Delaware took a similar stance in February 2023, when its Division of Gaming Enforcement sent a cease-and-desist letter to VGW, a major player running Chumba Casino and LuckyLand Slots. VGW left Delaware in April, and others, like Zula Casino, followed suit recently.
Some operators may have received unreported letters, while others are likely avoiding potential legal trouble by exiting voluntarily, seeing minimal revenue loss as a safer bet.
In New Jersey, sweepstakes casinos like Chumba Casino, Funzpoints, and Spree are shutting down as Assembly Bill 5447 nears enactment. Passed on June 30, the bill bans sweepstakes casinos and awaits Governor Phil Murphy’s action.
If he doesn’t sign or veto it by August 14, it becomes law automatically through “pocket approval.” Many operators began leaving right after the bill passed, anticipating its approval. Others held out hope for a veto but are now preparing for the law to take effect.
The sweepstakes casino industry is navigating a tricky landscape. States like Louisiana, Delaware, and New Jersey are tightening regulations, and the threat of legal action or profit loss is pushing operators out.
Some are following industry leaders like VGW, while others are proactively avoiding costly legal battles. Mississippi, for example, issued VGW a cease-and-desist in June, and by July 31, VGW had started phasing out its operations there.
As states crack down, sweepstakes casinos face tough choices: fight the regulations, risking penalties, or exit and accept smaller losses. For RealPrize and others, leaving these states seems to be the safer path forward.
