Deputy Editor
Iowa and Florida may be the next states to make moves against the sweepstakes gaming industry. While neither state has passed any legislative measures, both are taking steps to at least evaluate the industry, if not initiate effective bans.
In Florida, Attorney General James Uthmeier has “issued subpoenas to several companies” operating “fantasy- and sweepstakes-focused platforms,” per a report from Florida Politics.
Iowa, meanwhile, is looking at legislation that would give the state regulatory agency the authority to issue cease-and-desists to non-regulated operators. Cease-and-desist letters have become the go-to method of banning sweepstakes operators in some states, while others have opted for targeted legislation.
Approximately 97% of the U.S. had access to sweepstakes gambling in early 2025. That number has shrunk to less than 70%. Industry observers widely expect that trend to continue in 2026. Losing Florida, which has the third-biggest population of any U.S. state, would be a massive blow to sweepstakes poker liquidity.
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Florida Not Taking Hard Line on Sweepstakes Yet
The report from Florida described addressing “the rapid expansion of illegal and legally ambiguous gambling activities across the state” as a key objective of Uthmeier’s office in 2026.
From what Uthmeier said, the state is looking to ensure the protection of the Seminole Tribe’s market dominance. The Tribe has a monopoly on most gambling in Florida, including iGaming. While iGaming hasn’t been explicitly legalized, Hard Rock Bet has rolled out a historical horse racing (HHR)-like product that functions and feels like an online slot.
Rather than legislate out sweepstakes or issue cease-and-desists, Florida is taking a different approach.
Currently, many illegal gambling infractions fall under the category of misdemeanors. By upping the penalties to felonies for “repeat or large-scale operations,” the state believes it can better balance the risk-reward on such infractions.
“Right now, people can stand to make millions off of unlawful gambling operations and just end up with a slap on the wrist,” Uthmeier said in a short video. “This is not sending the right message, and it is not enough of a deterrent to stop this illegal behavior. A heightened penalty will give us in lawful enforcement the tools to hold these wrongdoers accountable.”
While sweepstakes sites were specifically mentioned as a target of the 2026 focus on illegal gambling, it doesn’t sound like Florida is looking to give them a swift boot, the way states like Tennessee and Kentucky have recently.
Rather, Uthmeier’s office sounds more open to the idea of letting the sweepstakes companies operate if they can get a regulatory framework hammered out. The report said the AG’s office will “meet with leaders” from the subpoenaed companies.
So, poker players enjoying the sweepstakes action in a state that doesn’t have legal online poker don’t need to panic just yet.
Iowa Could Begin Issuing C&Ds
Iowa has not taken any action against sweepstakes sites yet, but it may do so soon. A piece of proposed legislation gives the Iowa Racing and Gaming Commission the power to issue cease-and-desist orders.
Currently, the commission can’t take action against any entity aside from licensees. Iowa has legal online sports betting but no iGaming or online poker.
While states like California have legislated out sweepstakes operators, others, like Arizona, evicted them via cease-and-desist orders. That involves less legwork from government entities but can end up in a game of “whack-a-mole.” In that model, the state must remain vigilant against new operators that might pop up and fill the void left by the booted ones.
Iowa’s bill is in the early stages, with a legislative session scheduled to start Jan. 12.
Image credit: Michael Rivera/Wikimedia Commons (license)
