Gambling Loss Recovery Statutes by US State

1 states have a gambling loss recovery statute pleaded in a case we track, 3 more are pleaded without a section number, and 2 claims under these statutes are open today.

Facts checked 14 November 2026. The table is also available as a CSV from open data.

A loss recovery statute lets a person who lost money gambling sue to get it back, and in several states it lets a third person sue in the loser's place, sometimes for two or three times the loss.

These statutes are the legal engine of the social casino settlements, the sweepstakes class actions and the Gambling Recovery LLC suits against Kalshi. A complaint states one side's allegations; only the court's orders decide anything, and every row carries the date it was read from the record.

How to read this table

Each row is a state; the statute column shows the section as a complaint or opinion in our record cites it, and the cases column counts the cases that plead it. A row shows what was pleaded, not what was upheld.

The first wave failed in Phillips v. Double Down (N.D. Ill., March 2016) and Mason v. Machine Zone (4th Cir., 17 March 2017); the Ninth Circuit then opened the virtual-chip theory on 28 March 2018. The social casino lawsuits over virtual chips followed.

Sweepstakes complaints plead the same sections; see sweepstakes casino lawsuits.

Loss recovery statutes by state

The table lists every statute a complaint or opinion in our record cites, 1 states with a section number and 3 jurisdictions pleaded without one, as of 14 November 2026.

Utah's section is Utah Code 76-9-1412, renumbered from 76-10-1113 effective 7 May 2025, and older complaints still cite the former number. Minnesota reads statute not confirmed in the record. California has none: loss recovery was held barred by public policy in Zhen v. DraftKings (29 July 2026, per a press-hosted copy).

Who may sue: the loser, a spouse, any person

The statutes differ most on who may bring the claim: the loser alone, or after a waiting period any person at all.

As pleaded, Kentucky lets the loser, or after six months any person, sue for treble the loss (KRS 372.020 and 372.040). Illinois allows a third-party suit after six months (720 ILCS 5/28-8), Tennessee and Georgia say "any person", and Oregon and Utah plead double damages.

Federal courts turned many non-player plaintiffs away. The Sixth Circuit held in Burt v. Playtika (Nos. 25-5038 to 25-5042, 16 or 17 March 2025, the record carries both dates) that a non-player has no Article III injury, and the Western District of Kentucky dismissed Cayce v. VGW and four companions on 26 March 2026.

The Alabama Supreme Court held on 25 April 2025 that a non-player's claim is derivative and bound by the player's arbitration agreement, so cases sent to arbitration or kept in court decide many of these suits.

Gambling Recovery LLC filed six suits against Kalshi on 11 and 12 June 2025 in six states; four were remanded or stayed. The prediction market lawsuits hub tracks each.

What courts have decided under these statutes

Courts have read these statutes both ways: Washington's lets a player recover virtual-chip losses, while Maryland's and Illinois's were held not to reach a game operator that never "wins".

Kater v. Churchill Downs (No. 16-35010) held virtual chips a thing of value, explained in why virtual chips count as gambling in Washington State. Dew-Becker v. Wu (2020 IL 124472, 16 April 2020) held daily fantasy a contest of skill, so section 28-8(a) gave no recovery.

Settlements and judgments that paid under a loss recovery statute

Every social casino and sweepstakes settlement that has paid players so far rests on one of these statutes.

Each fund shown is gross, and every per-person figure is a payout estimate: member share = (gross fund plus interest minus fees, costs, administration, incentive awards, taxes) x (the member's recognized spend divided by all valid claimants' recognized spend).

DoubleDown's gross fund was USD 415,000,000. No sportsbook, fantasy or prediction-market case in our record has paid under these statutes; see class action payout per person.

Open claims under these statutes

Two claims under loss recovery statutes are open as of 14 November 2026: the Pulsz six-state settlement, with an election deadline of 30 November 2026, and the High 5 Games Washington settlement, with claims due 4 January 2027 per the settlement site.

Neither has paid yet, and each pays only if the court grants final approval. The Pulsz payout estimate is 23 percent of net spend in cash by election or 27 percent in Gold Coins by default, less pro rata fees (up to 30 percent requested) and costs.

High 5's estimate is member spend divided by total claimed spend, times the net amount paid in, so no per-person figure exists yet. Filing a claim is free; we are not a law firm and not an administrator.

New York's VGW redemption right is an administrative settlement, not a loss recovery claim; see open gambling class action settlements by deadline.

How this tracker is built

The table is regenerated from the case records at every build: a state gets a row when a complaint or opinion in our record cites one of its statutes, and the cases column counts those records.

Opinions, agreements and notices rank above complaints, and press is a lead only. State case lists are on gambling lawsuits by US state.

Tax treatment of losses and criminal gambling statutes are not covered. Other countries are in can you get gambling losses back? what courts have ordered, country by country.

Questions people ask

Can you recover gambling losses?

In the United States only where a state loss recovery statute applies and a court accepts the claim. The UK, Germany and Austria use different routes, covered in can you get gambling losses back.

What proof do you need to claim?

Each notice states its own proof, usually purchase or account records; see how to file a claim in a gambling settlement.

Which states let players sue social casinos and sweepstakes casinos?

No state bans social casinos by name in our record, so the question is where a player can sue, and the table answers it. Most operators' terms send claims to individual arbitration; see mass arbitration against gambling operators.

Can I sue Kalshi under a loss recovery statute?

Suits have been filed in Kentucky, Oregon, Alabama, Massachusetts, Illinois, Washington and New York, but none is decided on the merits, no class is certified and no payout exists; see Kalshi lawsuits.

What is the Statute of Anne?

The record describes colonial-era Statute of Anne laws that let any person sue to recover gamblers' losses, and dates Kentucky's to 1798.

Out of scope on this page

Tax write-offs, addiction recovery rates, casino debt collection and how to play are not covered.

The editorial team's methodology sets out how every case on this page is sourced and checked.

Last checked 14 November 2026. Next scheduled check: 30 November 2026 (Pulsz election deadline).