iGaming Weekly Recap (June 9–15, 2025): Louisiana’s Veto, Connecticut’s Ban… What’s Next for Sweepstakes?

Both DraftKings and FanDuel confirmed they will charge a 50-cent fee on every mobile and online bet in Illinois. FanDuel announced the move first, with DraftKings following suit. The fee is a direct response to Illinois’ new per-bet tax, effective July 1, which imposes a 25-cent fee for the first 20 million bets annually and 50 cents beyond that threshold.

DraftKings CEO Jason Robins expressed frustration, stating that Illinois “more than tripled our tax rate.” Flutter CEO (FanDuel’s parent company) Peter Jackson noted the new fee “disproportionately impacts lower-wagering customers,” as a $2 bet will cost $2.50, a 25% markup. Both companies pledged to remove the fee if the tax is repealed.

During his Senate hearing, Brian Quintenz staunchly defended prediction markets, presenting them as legitimate hedging tools. Quintenz argued that the Commodity Exchange Act (CEA) clearly supports prediction markets, stating: “The law is very clear about events that have commercial, financial, or economic consequence qualifying as commodities.” He reaffirmed his earlier stance that “all events are commodities” due to their economic impact, referring to interstate contracts.

Senator Adam Schiff compared prediction markets to gambling, but Quintenz countered that they are regulated by the CEA, and any conflicts are best resolved through Congress. He noted: “Nothing in the CEA prohibits tribes from offering those products,” if approved by the CFTC. He resisted the role of a “regulator making value judgments,” insisting Congress, not the CFTC, should set limits, saying: “The statute is very clear.”

Louisiana Governor Jeff Landry vetoed Senate Bill 181 (SB 181), which aimed to ban online sweepstakes casinos. This rejected the unanimous stance of Louisiana’s legislature, which had backed the bill. Landry justified his decision, arguing that existing regulators effectively combat illegal gambling. In his veto message, he stated: “This bill is a solution in search of a problem.”

He emphasized that the Louisiana Gaming Control Board (LGCB), alongside the Louisiana Attorney General’s Office and the State Police Gaming Division, is already actively addressing the issue. He added: “The Board is taking active steps against illegal online sweepstakes companies,” citing recent cease-and-desist orders issued, including to Harp Media B.V. (Bovada). Landry also criticized SB 181’s language as overly broad, warning it could hinder enforcement against rogue operators. He concluded: “This bill isn’t necessary.” His veto aligns with his 2024 actions, when he vetoed bills deemed redundant.

Connecticut Governor Ned Lamont signed Senate Bill 1235 (SB 1235), which bans online sweepstakes casinos. Lamont’s signing made Connecticut the second U.S. state, after Montana, to implement such a ban. SB 1235 was unanimously passed by both the Senate (36-0) and the House of Representatives (146-0).

The bill prohibits sweepstakes platforms, such as High 5 Casino and VGW’s Chumba, which offer casino games (e.g., slots, video poker, blackjack, roulette, craps, keno, bingo, sports betting) using dual-currency systems that mimic gambling. The regulations will take effect on October 1, 2025.

DraftKings and Underdog are the first to apply for online sports betting licenses in Missouri. DraftKings is a market leader with a 35% share of the U.S. market. Underdog is a rising daily fantasy sports (DFS) operator, known for its pick’em DFS contests and leveraging its existing ties to Missouri’s gaming industry through its fantasy sports license.

Both companies submitted early applications, signaling their interest in Missouri’s market. They are targeting one of the two “untethered” licenses, which don’t require partnerships with casinos or teams, with decisions expected by August 15.

Bonus: Where Do Anti-Sweepstakes Bills Stand in Each State?

Last week was eventful for the sweepstakes space. Louisiana, written off by many, bounced back after Governor Landry vetoed Senate Bill 181. It’s unlikely his veto will be overridden, though Louisiana’s legislature hasn’t spared us drama lately.

Governor Landry’s view wasn’t shared by Connecticut’s Governor Ned Lamont, who signed Senate Bill 1235 without hesitation, making Connecticut the second state to officially ban sweepstakes, following Montana’s lone stand until now.

Meanwhile, New York’s Senate voted 57-2 to pass bill S5935A, sponsored by Senator Joseph Addabbo Jr. The sweepstakes ban in New York remains in play, with the legislative session ending July 12. Recently, the state has taken broader action against dual-currency model operators, and the industry is bracing for the worst-case scenario.

Less concrete but noteworthy, Maine’s Gambling Control Unit (GCU) issued a warning against illegally operating operators. The GCU called out “sweepstakes” or “social casino” sites, prompting a response from the Social and Promotional Games Association (SPGA), which firmly disagrees with the “Maine Gambling Control Unit’s characterization of sweepstakes-based gaming platforms.”

Here’s a quick cheat sheet on the status of anti-sweepstakes bills:

Signed into Law

• Montana: SB 555, signed by the governor, takes effect October 1, 2025, imposing a comprehensive ban on online gambling, including sweepstakes casinos. Montana is the first state to enact such a ban in 2025.
• Connecticut: SB 1235, unanimously passed by the Senate (36-0 on May 22, 2025) and House (146-0 with five abstentions), was signed by the governor. It takes effect October 1, 2025, banning online sweepstakes casinos and lottery courier services.
• Nevada*: The 1959 Gaming Control Act requires licensing and regulation of all gambling, implicitly excluding sweepstakes casinos. Additionally, SB 256, signed by the governor, takes effect in October, prompting sweepstakes operators to cease operations in the state, though it doesn’t explicitly mention “sweepstakes.”

Under Consideration in Legislature

• New York: SB 5935 (S5935A), aiming to ban the operation and promotion of online sweepstakes, passed the Senate on June 11, 2025, and was referred to the Assembly’s Ways and Means Committee.
• New Jersey: Two bills, Assembly Bill 5447 (AB5447) and Senate Bill 4282 (SB4282), seek to ban sweepstakes in the state. AB5447 was referred to the Assembly Consumer Affairs Committee in early May, while SB4282 was sent to the Senate Budget and Appropriations Committee.
• Ohio: Rep. Brian Stewart’s HB 298 takes a broader approach to legalizing online casinos while banning sweepstakes casinos. The debate is heated, and the ban’s inclusion in an iGaming legalization bill significantly reduces its chances of success.

Failed in 2025

• Louisiana: SB 181, aiming to ban online sweepstakes, passed the House (99-0) and Senate but was vetoed.
• Florida: Two bills, HB 1467 and SB 1404, aiming to criminalize sweepstakes casinos and protect tribal compacts, failed to pass in the 2025 legislative session.
• Maryland: SB 860, seeking to ban sweepstakes casinos, passed the Senate (47-0) but didn’t reach a House vote before the 2025 session ended.
• Mississippi: SB 2510, aiming to ban sweepstakes casinos, passed the Senate (44-1) and House (83-19) but died in conference after House amendments added online sports betting provisions.
• Arkansas: HB 1861, which aimed to legalize iGaming but ban sweepstakes, was withdrawn due to lack of support, leading to further study.
• Illinois: SB 1705 saw insufficient progress before the legislative session ended May 31, and Senator Bill Cunningham’s efforts fizzled.

Particularly intriguing outcomes await the industry in New York and New Jersey. Beyond that, the sweepstakes industry must brace for other targeted actions, like New York’s AG recently sending cease-and-desist letters to 26 firms.