Summary:
- Pennsylvania and Maryland could revisit sweepstakes casino bans after the elections.
- VGW has made substantial contributions in Alabama, Arizona, Florida, and other states, highlighting the industry’s interest in political developments.
- Oklahoma and Indiana already have bans, but the elections could influence enforcement.
The November 3 US midterm elections could have significant implications for the sweepstakes casino industry in 2027, as voters in several states choose governors, lawmakers, and attorneys general who will influence future bans, regulation, and enforcement.
While sweepstakes casinos are not directly on the ballot, the results could affect legislation that has stalled or is awaiting consideration, as well as how existing restrictions are enforced.
Several states are particularly important for the industry, including Pennsylvania, Alabama, Arizona, Oklahoma, Maryland, and Indiana.
Pennsylvania: Lawmaker Behind Proposed Ban Faces Voters
Pennsylvania is one of the most closely watched states. All 203 seats in the state House are up for election, with Democrats currently holding a narrow 103-100 majority. Republicans control the Senate, where half of the 50 seats are being contested.
The outcome could influence the future of House Bill 2801, a proposed ban on dual-currency sweepstakes casino games introduced by Republican Rep. Russ Diamond.
The bill includes potential fines of up to $500,000. Diamond chairs the House Gaming Oversight Committee, but Democrats hold the majority and Democratic Rep. Pat Harkins serves as its majority chair.
Diamond is also seeking re-election in the 102nd District, making his political future another factor in the bill’s prospects.
Alabama: Campaign Contributions Put Gambling Policy in Focus
Alabama is another state to watch, despite having neither a state lottery nor commercial casinos. Sweepstakes casino operators continue to offer services there.
Republican Sen. Tommy Tuberville, who is running for governor, received $30,000 from VGW Luckyland in March, followed by another $100,000 contribution from the company. VGW has contributed a total of $351,000 to Alabama political races during the current election cycle.
Tuberville has said decisions about gambling expansion belong to the legislature rather than the governor. The contributions do not establish his position on sweepstakes gaming, but they illustrate the industry’s interest in the state’s political leadership.
Arizona: Enforcement and Political Control
Arizona has taken a tougher approach to sweepstakes casinos by using enforcement rather than simple legislation. The Arizona Department of Gaming has sent cease-and-desist letters to several operators over the past two years, including Pulsz, Modo.us, Fliff, Stake.us, and High 5 Casino.
However, lawmakers have not considered a bill specifically outlawing the model.
VGW, which has not received a cease-and-desist letter and continues to offer Sweeps Coin gameplay in the state, has contributed $70,000 to three Republican political organizations this election cycle.
The contributions include $30,000 each to the Arizona Senate Victory Fund PAC and House Victory Fund, which support Republican legislative majorities, and $10,000 to Restore Order Arizona.
The latter has supported Senate President Warren Petersen’s campaign for attorney general. The office currently held by Democrat Kris Mayes has an important role in potential enforcement against sweepstakes operators.
Oklahoma and Maryland: Current Bans and Stalled legislation
In Oklahoma, the sweepstakes casino ban was scheduled to take effect November 1, just two days before the election. Gov. Kevin Stitt vetoed Senate Bill 1589, but lawmakers overrode his decision by wide margins in both chambers.
Stitt is leaving office because of term limits. Republican Mike Mazzei and Democrat Cyndi Munson are competing to replace him.
The next administration will oversee enforcement of the new restrictions, while both candidates have promised closer cooperation with the state’s tribal nations, which supported the ban.
Things are different in Maryland, as sweepstakes ban proposals have repeatedly advanced in one chamber but failed to complete the legislative process.
The Senate approved a ban 47-0 in 2025, but it stalled in the House. In 2026, the House passed two separate proposals, neither of which advanced through the Senate before the legislative session ended on April 13.
All seats in Maryland’s General Assembly are up for election, and changes to relevant committees could influence whether lawmakers reach an agreement in 2027.
Indiana: Industry Loses a Prominent Supporter of Regulation
Indiana already banned Sweeps Coin gameplay on July 1, 2026. However, the election could also affect the industry’s remaining political support for regulation rather than outright prohibition.
Republican Sen. Ron Alting, who sponsored the state’s ban, had previously proposed an amendment to regulate and tax sweepstakes gaming instead. He did not bring it forward after receiving opposition from legislative leadership.
On October 7, Alting announced he was stepping back from active campaigning while undergoing medical evaluation and treatment. He remains on the November 3 ballot against Democrat Natasha Baker.
Other states could also influence the industry’s outlook. Texas, Florida, Tennessee and Kentucky are worth watching because of political races, campaign contributions and ongoing debates over gambling regulation.
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