Several sweepstakes casino operators are exiting Indiana and Iowa ahead of new laws against the industry.
Earlier this year, Iowa lawmakers approved a bill that allows the Iowa Racing and Gaming Commission (IRGC) to issue cease-and-desist letters to companies it deems to be operating illegally.
It specifically mentions taking action against “a person offering games of chance, gambling, sports wagering, or illegal sweepstakes” as well as fantasy sports. Gov. Kim Reynolds signed the legislation last month, and it will take effect on July 1.
Indiana Ban Comes Into Effect Next Month
In February, Indiana lawmakers also passed a ban on sweepstakes casinos, which was later signed off on by Governor Mike Braun. The new law also comes into effect on July 1.
It specifically prohibits sweepstakes games, which it defines as any game, contest, or promotion available on the internet that uses a dual- or multi-currency system to allow users to play lottery- or casino-style games.
The Indiana Gaming Commission has the authority to impose civil penalties of up to $100,000 on operators or individuals who knowingly offer sweepstakes games to Indiana residents, including out-of-state platforms that do business with players located in the state.
High 5 Games Among Those Exiting States
As of last month, no major operators had blocked access to Iowa players, but in anticipation of IRGC action, several operators are adding it to their restricted lists. We counted three operators (Pulsz, Carnival Citi, and Ruby Sweeps) that had restricted access to Indiana players last month, but that number is also growing.
High 5 Games posted a special notice to users in Indiana and Iowa, noting, “As of June 16, 2026, participants located in these states will no longer be able to register new accounts for High 5 Casino, and existing players will no longer be able to make purchases on the platform.”
Baba Casino similarly said it would begin restricting access to Iowa players from June 7. It added, “Access to player accounts from the state of Iowa or for residents of Iowa will be unavailable after June 28, 2026, and player accounts belonging to residents of Iowa will be closed.”
The operator also lists Indiana among the 21 other states where it is not available. Modo Casino similarly lists Indiana as an excluded state, but has not yet added Iowa.
Other Platforms Stay Active, for Now
Not all operators have updated their terms to exclude residents of Iowa and Indiana, however. VGW, the company behind Chumba Casino, Luckyland Slots, and Global Poker, does not list either state in its list of 14 excluded zones.
Similarly, McLuck states that it is unavailable in 13 states, but does not include Iowa or Indiana among those. It also does not exclude California residents, despite the state passing a ban last year.
The company excludes Kentucky players, unlike VGW, which was recently sued by the state, as well as prediction market platforms Kalshi and Polymarket.
Stake and WOW Vegas have also not updated their terms to exclude either Iowa or Indiana. Regulators in Iowa and Indiana may be monitoring the platforms and preparing to take action when their new laws take effect next week.
The post Iowa & Indiana See Exodus of Sweepstakes Casino Operators Ahead of New Laws appeared first on CasinoBeats.
