Sweepstakes Casinos Exit West Virginia Amid Legal Crackdown
Over 20 sweepstakes casino operators, including McLuck, Funrize, and High 5 Casino, have pulled out of West Virginia following aggressive legal action by Attorney General John McCuskey.
McCuskey’s Legal Offensive
In January 2025, McCuskey issued 47 subpoenas to sweepstakes casinos, demanding documents to probe their compliance with West Virginia law.
Unlike milder “cease and desist” letters used elsewhere, these subpoenas signal a hardline stance, with non-compliance risking penalties.
Sweepstakes platforms, which use dual-currency systems, free Gold Coins for play and Sweepstakes Coins for cash prizes, operate in a legal gray zone, relying on federal exemptions rather than state regulation.
McCuskey’s push aims to protect West Virginia’s regulated online casinos and sports betting, one of seven states with legal iGaming.
The coordinated withdrawal of operators like Modo.us, Stake.us, and Pulsz shows the pressure is working, though some, like Chumba and WOW Vegas, continue to operate.
Nationwide Trend Against Sweepstakes
West Virginia’s crackdown mirrors actions in other states. Montana, Nevada, and Connecticut have banned sweepstakes casinos outright, while New York’s Attorney General ousted 26 operators with cease-and-desist letters.
New Jersey passed a clear ban, and California is debating similar legislation. In contrast, Maryland, Mississippi, and Florida rejected anti-sweepstakes bills, yet some operators, like McLuck, still exited Maryland.
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