Virginia Studying Sweepstakes Casinos As “Local” Operator Comes Under Fire

Amid a slew of complaints, Virginia lawmakers are delaying a decision on sweepstakes casinos until 2027.

State officials amended Senate Bill 579 — which aimed to ban sweepstakes casinos — during the 2026 legislative session to require a study on the effects of the sweepstakes industry. Operators cannot be banned until the completion of the study, putting the earliest possible date of a ban in 2027.

This is particularly relevant since the Better Business Bureau (BBB) fielded 363 complaints about a Fredericksburg-based operator that repeatedly denied customers’ attempts to withdraw funds.

Virginia group will study sweepstakes casinos

Virginia lawmakers’ decision to delay a potential sweepstakes casino ban does not mean that the sweepstakes industry secured a win. At the very least, it will give them another year or so of operations, and give them time to modify their approach, if it is deemed necessary. 

SB 579 originally wanted to declare certain sweepstakes operators as providers of illegal gambling in Virginia. Proponents of the bill argued that stronger enforcement was needed amid the growing national popularity of sweepstakes platforms.

The Senate Committee for Courts of Justice was responsible for approving an amended version of the bill. Instead of banning these dual-currency platforms, the Virginia Lottery Board is now responsible for forming a group to review and analyze the sweepstakes casino industry. Their findings will be included in a suggestion presented to lawmakers.

To avoid internal bias, the bill requires that stakeholders from the sweepstakes and social gaming industries be included in the group’s members. They will join officials, gaming regulators, and additional relevant and interested parties.

Virginia has consistently supported gaming legalization and expansion, although it has been steady in doing so. The state still has not legalized online casinos, despite one lawmaker calling it an “inevitability.” It is also home to five land-based casinos with live-dealer table games and slot machines and has maintained a legal sports betting market since its Jan. 21, 2021, launch date.

Not up to snuff

Several states across the country have already passed all-encompassing sweepstakes casino bans. Others have taken a review-based approach as they try to understand their niche and the operational focus of a dual-currency model. 

The Social Gaming Leadership Alliance was formed to help represent leading sweepstakes operators. The group champions platforms that offer free-to-play experiences, advocates for responsible gaming protocols, and denounces illegal, offshore operators. 

Virginia’s decision to study, not ban, sweepstakes platforms comes at a time when a close-to-home operator is under fire from consumers.

Crown Coins, whose operating company is headquartered in Tel Aviv, Israel, claims to have a business presence in Fredericksburg. The BBB could not find more than a P.O. box.

The platform was given a “F” rating by the BBB after it was named in 363 customer complaints, many of which related to withdrawals. 

“Consumers allege that when they try to redeem their earnings, they hit roadblocks,” the BBB reports.

Crown Coins addressed the report by stating that several requests were placed by players who violated terms and conditions, such as creating multiple accounts to receive more than one sign-up bonus.

Depending on the outcome of the study, Virginia could license, ban, or ignore sweepstakes casinos in 2027.