This weekend's Daytona 500 will witness a historic moment—sweepstakes casinos Chumba and Modo will debut as the main sponsors on the cars of 23XI Racing and Spire Motorsports, respectively. This marks the first time in the 68-year history of NASCAR's "Great American Race" that sweepstakes casinos have become major team sponsors, and right off the bat, there are two of them. But as they celebrate this new high in exposure, a legal and regulatory storm is brewing behind them. Critics argue that these platforms are essentially real money gambling—players buy tokens and can convert their winnings into cash. Want to know how sweepstakes casinos are expanding through regulatory loopholes? PASA's official website continues to track industry legal dynamics and business strategies.
First Daytona Debut: From "Testing the Waters" to "Doubling Down"
In early 2026, two sweepstakes casinos announced an expansion of their cooperation with NASCAR teams:
Chumba Casino (parent company VGW): Announced on January 6th an expanded partnership with 23XI Racing, covering Daytona, The Clash, and more events, continuing to sponsor Tyler Reddick (car 45) and Bubba Wallace (car 23), and providing fan sweepstakes and VIP experiences.
Modo Casino (parent company ARB Interactive): Became the main sponsor of Michael McDowell (car 71) at Daytona on February 3rd, and will also appear on the cars of Daniel Suarez (car 7) and Carson Hocevar (car 77) during the season.
VGW's Chief Marketing Officer Ben Whitford said that the first year of cooperation had "amazing results," and this year they will further reach NASCAR fans. Bill Anthony, President of Spire Motorsports, believes that Modo brings "real energy and social media appeal" to racing.
Regulatory Siege: Six States Banned, Over Ten States Following
However, the enthusiasm of the sponsors cannot hide the severe legal environment sweepstakes casinos face across the US:
2025: Six states (including New York, California) explicitly banned the operation of sweepstakes casinos
2026: At least a dozen states have proposed bans or revised gambling regulations, intending to bring these platforms under enforcement.
Cease and Desist Letters: Several state regulatory bodies have issued cease and desist letters to operators active in their states
Critics point out that sweepstakes casinos, through the "buy tokens - exchange for cash" mechanism, are essentially evading regulation as real money gambling. Last month, the Illinois Gaming Board issued cease and desist letters to over 60 operators, including Chumba.
Celebrity Endorsements Backfire: Drake, Seacrest Sued Consecutively
The brand collaborations of sweepstakes casinos are not limited to racing, as celebrities from the entertainment industry also get caught in legal whirlwinds:
Drake: Named in multiple lawsuits due to his collaboration with Stake.us, including a RICO class action in Virginia, where plaintiffs accuse him of promoting a platform disguised as a "social casino."
Ryan Seacrest: Sued in August 2025 for his association with Chumba Casino (later dismissed).
Brian Christopher: A slot machine influencer with over 750,000 YouTube subscribers, sued the same month for promoting other VGW products.
These cases send a warning to potential partners: standing for sweepstakes casinos may involve legal risks.
Will NASCAR Teams Back Down at the Last Minute?
Facing increasingly tight regulations, will 23XI Racing and Spire Motorsports waver due to "legal concerns"? Gambling Insider attempted to contact ARB Interactive and Spire for comments; Spire did not respond, and although ARB's associated PR firm did respond, they ultimately did not answer the questions.
Sweepstakes casinos are at a crossroads: on one side is the spotlight of Daytona and the exposure of millions of NASCAR fans, on the other are increasing bans, lawsuits, and celebrity backlashes. The speed on the track can be predicted, but the direction of the regulatory storm is unclear.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
Original deep gambling channel:https://t.me/gamblingdeep
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PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
