iGaming Weekly Recap (September 8–14, 2025): The Ground Beneath Sweepstakes Casinos Continues to Crumble
Efforts targeting sweepstakes casinos are taking increasingly concrete forms. California’s AB831 passed unanimously through the Senate, moving significantly closer to becoming law. Meanwhile, Louisiana filed a lawsuit against a sweepstakes operator, seeking a total of $44 million for unpaid sales taxes. As always, there was plenty of action surrounding prediction markets as well. Check out our Weekly Recap to stay up to date!
In California, Assembly Bill 831 (AB 831), aimed at banning online sweepstakes casinos, passed the State Senate with a unanimous 36-0 vote and will now return to the State Assembly for final votes on Senate amendments. This controversial legislation deepens divisions within California’s tribal community, with larger tribes supporting it as a protection of their exclusive gaming rights, while smaller, rural tribes oppose it, arguing it threatens their economic survival and cuts off critical digital revenue streams.
Meanwhile, the sweepstakes industry faces a multi-front assault: High 5 Casino announced it will cease operations in California following a lost court case, the city of Los Angeles filed a massive civil lawsuit against Stake.US, and Playtech withdrew its content from all sweepstakes casinos in the state. Once approved by the Assembly, the bill will head to Governor Gavin Newsom for signing.
In an ongoing legal dispute over sports-based prediction markets, a panel of judges from the U.S. Third Circuit Court of Appeals expressed skepticism toward New Jersey’s arguments. The core issue is the definition of the term “swap”; Kalshi, regulated by the federal Commodity Futures Trading Commission (CFTC), maintains that its contracts are a form of “swap” and fall under exclusive federal jurisdiction.
New Jersey, however, argues they constitute illegal sports betting, subject to state regulations. The judges consistently challenged New Jersey’s narrow interpretation of the law, pointing to the broad definition of “swap” in the statute. Kalshi’s legal team warned that a ruling in favor of New Jersey could threaten the $730 trillion global derivatives market and cause “chaos in U.S. and global markets.” While a final decision is not imminent and the case may reach the Supreme Court, legal observers noted that the judges appeared to lean toward Kalshi’s arguments, suggesting a tough battle ahead for New Jersey.
Aristocrat, a global gaming technology company, announced strategic leadership changes to accelerate its strategy for the new fiscal year. Dylan Slaney, former president of iGaming at Light & Wonder, has been appointed the new president of Aristocrat Interactive, replacing Moti Malul, who played a key role in integrating NeoGames. Slaney’s extensive iGaming experience is expected to strengthen Aristocrat’s leading position in the iLottery market.
Meanwhile, Natalie Toohey, the former Chief Corporate Affairs Officer, is leaving the company, and her role will be taken by Barry French, who will assume an expanded position as Chief Corporate Affairs & Marketing Officer. French, with experience outside the gaming industry, is set to bring a fresh, global perspective to the company’s corporate and marketing strategy. Both new executives will report directly to Aristocrat Group CEO and Managing Director Trevor Croker and join the Steering Committee.
The Louisiana Department of Revenue filed lawsuits against two major promotional sweepstakes casino operators, VGW (operator of Chumba Casino and Global Poker) and MW Services (operator of WOW Vegas), seeking a combined $44 million in unpaid sales taxes, interest, and penalties. The state argues that “Gold Coins” and other virtual currencies sold by these platforms qualify as taxable “digital goods,” and the companies, by selling them to Louisiana residents, acted as “dealers” obligated to collect and remit sales tax, which they failed to do.
Louisiana claims VGW owes over $32.4 million and MW Services approximately $13.5 million, holding the companies personally liable for payment. This lawsuit represents a new legal strategy, directly fulfilling an earlier warning from the Louisiana Attorney General’s Office that, despite promotional sweepstakes casinos being deemed illegal gambling enterprises, they remain subject to federal and state tax laws. This action aligns with a broader nationwide trend of scrutiny and enforcement against the promotional sweepstakes industry, including legislative bans, regulatory enforcement, and litigation in other states.
Retail trading platform Robinhood will join the S&P 500, replacing casino operator Caesars Entertainment, marking a milestone that solidifies its position as a major force in U.S. financial markets. This inclusion recognizes Robinhood’s business model, which revolutionized stock trading by eliminating commissions and democratizing market access for a new generation of investors.
The immediate effect is expected to be increased demand for Robinhood’s shares, as index-tracking funds will need to purchase them, already driving a 7.3% surge in after-hours trading. Joining the S&P 500 symbolizes financial stability and market credibility, confirming Robinhood’s adherence to stringent criteria for profitability, liquidity, and market capitalization—a notable achievement given past controversies. The company’s stock has doubled in value this year, with a market capitalization of approximately $91.5 billion.
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