Sweepstakes Casinos Face State Crackdowns but Growth Forecast Remains Strong

Ian Valentino
Published: Tue Oct 13 2026
Reviewed By Paul Skidmore
USA, market growth chart
Key Points
  • Sweepstakes casino market growth could reach 12.9% in 2027.
  • State restrictions are forcing operators to explore alternative models.
  • Collectibles could become a bigger part of sweeps platforms.

The US sweepstakes casino industry could continue growing in 2027 despite facing an increasingly difficult regulatory environment. Eilers & Krejcik Gaming projects the market will expand by 12.9% next year under its base-case forecast, suggesting state restrictions may not be enough to stop broader industry growth.

The forecast comes as operators contend with challenges to the dual-currency model that has traditionally defined sweepstakes casinos. Several states have moved against platforms using separate virtual currencies for social play and sweepstakes participation, potentially limiting where established operators can offer their traditional products.

New formats could reshape the market

Rather than simply abandoning states where dual-currency platforms face restrictions, some operators have begun experimenting with different formats. Single-currency platforms represent one emerging approach, although it remains unclear whether these alternatives will withstand regulatory scrutiny over the long term.

Examples highlighted in the industry include platforms combining casino-style games with other mechanics. Some have incorporated collectible card battles or competitive game modes while relying on a primary virtual currency instead of the conventional Gold Coins and Sweeps Coins combination. These changes could allow operators to maintain products with similarities to traditional social casino platforms without using exactly the same structure.

Collectibles give operators another avenue

Collectibles could also play a larger role in the next phase of the industry. Digital pack-opening products allow users to reveal collectible items online, including trading cards that may subsequently be kept, shipped or sold. GameStop entered this market with its Power Packs product in April 2026, while dedicated platforms such as Rips and Tilt Rips have offered similar experiences.

Sweepstakes operators have started moving in the same direction. MyPrize has launched a card-focused Packs product, while Modo has introduced an unboxing-style Boxes feature. These products represent a potential diversification strategy as operators look beyond conventional casino-style games and dual-currency sweepstakes.

Regulatory pressure remains the major variable

The growth projection does not eliminate the significant questions facing the industry. California and New York are among the states that have targeted dual-currency gaming, and additional restrictions could affect how widely traditional sweepstakes casinos operate. The durability of newer single-currency and collectibles-based formats also remains uncertain.

That makes Eilers & Krejcik Gaming’s 12.9% forecast notable, but not a guarantee that individual operators or business models will thrive. The market could grow while simultaneously undergoing substantial changes in how platforms attract customers, structure games and generate revenue.

2027 could become an important transition year

The sweepstakes casino industry may therefore enter 2027 looking considerably different from the market that expanded around the dual-currency model. Operators are experimenting with alternatives at the same time regulators are examining where sweepstakes products fit within existing gambling laws.

If the 12.9% base-case projection materializes, growth would suggest that regulatory restrictions are changing the industry rather than eliminating demand. But the next stage will likely depend on whether emerging formats remain viable as states continue deciding how aggressively to regulate sweepstakes-style gaming.

Why Trust Us & Affiliate Disclaimer

Loading …

21+ and present in OH. Gambling Problem? Call 1-800-GAMBLER.
Trading on prediction market apps carries risk and may not be suitable for everyone. You could lose the funds and fees you use to enter any transaction. Carefully consider whether participating in prediction markets is appropriate for you, based on your financial situation and experience. All trades and decisions are your own responsibility, and any information provided on this site is for general informational purposes only. Please note that prediction markets fall under the regulatory authority of the Commodity Futures Trading Commission (CFTC).
home › sweepstakes-casinos › legal-news › sweepstakes-casinos-face-state-crackdowns-but-growth-forecast-remains-strong