The Delaware Department of Gaming Enforcement (DGE) recently sent cease-and-desist letters to two sweepstakes casino operators, calling for them to exit the Delaware market. At the same time, the DGE urged players to wind down their own real-money play.
Delaware’s regulators sent a letter in mid-August 2026 to RealPlay Tech Inc., which owns prominent sites like RealPrize and LoneStar Casino. On August 21, 2026, RealPrize and LoneStar Casino exited the Delaware market.
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Prize redemption deadline on September 21, 2026
At the same time, the DGE announced a strict window to submit redemption requests for real-money prizes. They had until September 21, 2026, to make those requests.
After that, the DGE said it would lock funds for all players in Delaware. As of September 22, 2026, all real money play at sweepstakes casinos has officially ended.
Both sites now have complete account restrictions in place.
Earlier withdrawal of Chumba Casino and LuckyLand Slots
The Delaware DGE sent a similar cease-and-desist letter to VGW Holdings, owner of Chumba Casino and LuckyLand Slots, in early 2025. As a result, the largest operators in the sweepstakes industry have not been in Delaware for roughly 18 months.
As early as February 23, 2023, the DGE had barred other operators, such as High 5 Games. The operator owns only High 5 Casino, but also licenses slots to a huge network of other sites, serving operators with a combined 17 million players worldwide.
Operators who’ve long geo-fenced Delaware
Because of its history of strict enforcement, a variety of top sweepstakes casino operators have long since set up a geo-fence around Delaware, including Pulsz, McLuck, Hello Millions, and Stake.us.
Overall, Delaware has targeted over 30 operators since 2023, so Realprize and LoneStar Casino were among the last major sites to leave.
Delaware Penal Code (Title 11)
In taking their actions, the Delaware DGE cited several parts of Delaware’s constitution. Under the Delaware Penal Code (Title 11), the state has a number of prohibitions involving illegal gambling, banned gambling devices, and unlawful services.
Delaware civil law, considered the most developed in the country, defines gambling under Title 11. It states that any activity that allows people to exchange money for virtual currency that can then be risked for real-money prizes is illegal gambling.
The various cease-and-desist letters state that sweepstakes casinos “misrepresent” their sites as being harmless promotional sweepstakes operators.
Delaware Gaming Competitiveness Act of 2012
One law often cited is the Delaware Gaming Competitiveness Act of 2012, which is designed to keep “unlicensed entities” from offering gambling on slot titles and other traditional casino games.
The law was enacted to support Delaware’s small licensed online casino industry, the first of its kind in the nation. Delaware’s three land-based horse racing tracks — Delaware Park, Bally’s Dover (originally Dover Downs), and Harrington Race Course — were allowed to open online portals.
The DGE is therefore aggressive in protecting those operations. Delaware has the 6th-smallest population among U.S. states, with only 1.06 million people, so it is considered a marginal gambling market.
Exiting the state therefore makes more sense than fighting such a ban.
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