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OAKLAND PARK, Fla (Gambling911.com) - Two more sweepstakes casinos have shut down over the last two weeks.
LuckyStake shut its sweepstakes casino down Aug. 14 with redemptions due by Aug. 20.
The Money Factory did so two weeks ago.
Unlike a real money online casino, sweepstakes - or social casinos - is an online platform that allows users to play casino-style games, including slots, bingo, table games, and even live casino games, using virtual currency instead of real money. These types of online casinos rely on additional real money purchases once the free play component is exhausted. In contrast, real money online casinos require a small deposit that can be increased through wins. Free play and cash bonuses are typically offered as well.
The Money Factory issued the following notice to customers earlier this month:
"After careful consideration, The Money Factory has permanently ceased operations as of August 9, 2026. No new registrations, purchases, or gameplay are being accepted.
"All player accounts, balances, and pending redemption requests have been recorded and preserved. Players with pending requests do not need to take any action — your request and your account records are on file.
"The company is conducting an orderly wind-down. Players with questions, or who wish to request a copy of their account records, may contact playershutdown@themoneyfactory.com. We will respond as quickly as we are able and will post further updates here as the wind-down progresses.
"We are grateful to everyone who played with us."
Operators across the industry have pointed to growing compliance obligations as well as legal uncertainty in some states, however, the industry competition has also played a key role in snuffing out less profitable sites.
Real money online casinos, either state-regulated or internationally-licensed, continue to thrive in the U.S. To date, only seven states regulate real money internet casinos.
Sweepstakes casino operators and their so-called "free social" model are mostly being quashed - not for offering a casino per se - but for featuring a "dual currency sweepstakes" component. Certain states either have existing laws banning duel currency sweepstakes or sweepstakes in general.
- Gilbert Horowitz, Gambling911.com
