What are Sweepstakes Casinos and how are Sweepstakes Casinos Legal in the US?
Yes, sweepstakes casinos are legal in most US states and Canadian provinces. These casinos are not considered gambling sites because they don’t use real cash to make wagers. Instead, users play at the casino with two virtual currencies: Gold Coins and Sweepstakes Coins.
So what is a sweepstakes casino? Well, Sweepstakes casinos are online free-to-play gaming platforms designed to provide the entertainment of casino-style games. Now, if you’re wondering, “How are sweepstakes casinos legal in the U.S in the first place?” The answer is in the model.
Unlike traditional online casinos, which operate entirely on cash wagers, sweepstakes casinos run on a dual-currency system: Gold Coins, which exist purely for gameplay and entertainment, and Sweeps Coins, which carry real redeemable value if eligible.
By removing direct cash wagering, sweepstakes casinos avoid the label of “traditional gambling.” And that’s why USA sweepstakes casinos can operate in the U.S. States like Washington, Idaho, Michigan, and Nevada closed the gates entirely, treating sweepstakes models no differently than real-money casinos.
Beyond that, availability depends on the operator’s own risk line. Many avoid jurisdictions such as Montana, New York, New Jersey, or Connecticut, where regulators have taken a harder stance. The end result? Access is widespread, but hardly universal, and players need to check the terms and conditions of the online sweepstakes casino they wish to sign up for and not assume their state is unrestricted.
What Are Sweeps Coins and Gold Coins?
There is an important difference between Gold Coins vs Sweeps Coins.
Gold Coins are the entertainment in-game currency. Players can purchase them if they wish to extend their gameplay or receive them through promotions and use them to play games. They carry no cash value and exist purely to provide the gameplay experience.
Sweeps Coins, on the other hand, are redeemable in-game currency. Players acquire them either as bonuses with optional Gold Coin purchases or through strategic promotional giveaways. Redeem them for gift cards or real cash prizes after you’ve cleared eligibility checks and met redemption thresholds.
What Do The Best Sweepstakes Casinos Offer and Can You Legally Win Real Money at a Sweepstakes Casino?
The best sweepstakes casinos have built out full-fledged lobbies: modern video slots, table games, live dealer streams, even social poker rooms and scratch cards. Some sweepstakes casinos in the U.S.A further offer exclusive in-house titles you won’t find at competitors’ sites. These games are powered by recognizable software providers, the same names that power real-money online casinos abroad.
You can win real money prizes here, but note that these platforms don’t pay you in real money prizes. Sweepstakes Coins casinos offer two types of virtual currency: Gold Coins (for play) and Sweeps Coins (for prizes). Gold Coins are just for entertainment. Sweeps Coins, on the other hand, are where it gets serious.
If you’re playing in promotional mode and collect Sweeps Coins through bonuses, giveaways, or purchases bundled with Gold Coins, you can redeem them if you meet the platform’s criteria. Eligible Sweeps Coins can be exchanged for real monetary prizes or gift cards.
Sweepstakes Casinos U.S.A: Rules For Redemption
If you wish to redeem eligible SC for tangible rewards from a U.S sweepstakes casino, first, you need to meet the operator’s requirements. Complete account verification, clear the playthrough on your Sweeps Coins, and reach the minimum redemption threshold set by the online casino.
Most redemptions go through the standard channels. Direct bank transfers, ACH payments, or gift cards. But banking preferences matter. Many players lean toward sweepstakes casinos that accept PayPal, not just for optional Gold Coin purchases but because PayPal is a trusted option. Remember, you must also be located in a legal jurisdiction where the sweeps online casino you are registered with is legally permitted to operate.
Are Sweepstakes Legal? How Are Sweepstakes Casinos Legal?
The vast majority of Americans can log in and play legally under the sweepstakes model.
U.S. law states that three factors must be met for what is considered illegal gambling: consideration, chance, and an opportunity to win a prize.
Consideration refers to the cash entry into an activity, which is not present in sweepstakes casinos since they do not utilize real money to place wagers, thus making them legal.
Instead, sweepstakes casinos use two virtual currencies: Gold Coins and Sweeps Coins. You can use GCs to play for fun, while SCs can be redeemed for cash prizes.
Sweepstakes laws stipulate that the operator must have a free entry where participants are unable to buy additional entries to improve their chances. That means playing at sweepstakes casinos is always free with no purchase necessary. However, players cannot buy additional Sweeps Coins.
Since participation is free and you can’t buy additional entries, sweepstakes coins casinos offer various alternative methods of entry (in this case, awarding Sweeps Coins). That includes a no-purchase bonus, daily rewards, mail-in requests, social media giveaways, leaderboards, and more.
Where are Sweepstakes Casinos Legal in The US?
U.S sweepstakes casinos operate legally in most states, making them one of the most widely accessible forms of online gaming. The chart below outlines every state and its current stance. For most residents, whether in California, Texas, Florida, or New York, the answer is yes: you can access the best sweepstakes casinos and play safely within the sweepstakes model.
United States
| State/District/Province | Legal? |
|---|---|
| Alabama | Yes |
| Alaska | Yes |
| Arizona | Yes |
| Arkansas | Yes |
| California | Yes |
| Colorado | Yes |
| Connecticut | Yes |
| Delaware | Yes |
| Florida | Yes |
| Georgia | Yes |
| Hawaii | Yes |
| Idaho | NO Sweepstakes Coins, only Gold Coin play |
| Illinois | Yes |
| Indiana | Yes |
| Iowa | Yes |
| Kansas | Yes |
| Kentucky | Yes |
| Louisiana | Yes |
| Maine | Yes |
| Maryland | Yes |
| Massachusetts | Yes |
| Michigan | NO |
| Minnesota | Yes |
| Mississippi | Yes |
| Missouri | Yes |
| Montana | Yes |
| Nebraska | Yes |
| Nevada | Yes |
| New Hampshire | Yes |
| New Jersey | Yes |
| New Mexico | Yes |
| New York | Yes |
| North Carolina | Yes |
| North Dakota | Yes |
| Ohio | Yes |
| Oklahoma | Yes |
| Oregon | Yes |
| Pennsylvania | Yes |
| Rhode Island | Yes |
| South Carolina | Yes |
| South Dakota | Yes |
| Tennessee | Yes |
| Texas | Yes |
| Utah | Yes |
| Vermont | Yes |
| Virginia | Yes |
| Washington | NO |
| West Virginia | Yes |
| Wisconsin | Yes |
| Wyoming | Yes |
Canada
- Sweepstakes casinos are legal in all of Canada except Quebec, but you won’t find as many sweepstakes casinos here as in the US.
Are Sweepstakes Casinos Legal Where I Live? Here’s How to Check Legality
Here’s how to verify whether a sweepstakes casino can operate where you are without guesswork.
Open the Official Rules of the sweepstakes casino
Go to “Official Rules,” “Terms & Conditions,” or “Eligibility.”
Look out for:
- A list of excluded states (often under “Void where prohibited”).
- How they define residency and proof of address.
- Details on how Sweeps Coins or bonus entries are earned (especially free vs. paid paths).
- Any clause that nullifies redemptions or voids you if KYC fails.
If that page is missing, vague, or written like an ad copy, it’s a glaring red flag. Walk away.
Scan for your state in “Not Allowed / Excluded
If your state is named explicitly in a “void in” or “not allowed” bloc, that’s non-negotiable: the brand doesn’t serve players there.
Try the cashier / redeem menu
If you have successfully signed in, log in:
- See if Sweeps Coins (SC) mode is available (not just Gold Coins).
- Check for the Redeem button for SC.
If that’s missing, or greyed out, it means either (a) SC mode is blocked from your state, or (b) the operator is only allowing “play for fun” in your area. Either way: no prize path.
Do they accept KYC / identity verification?
They must. Before you redeem eligible SC, expect to upload ID, proof of address, and sometimes selfies. Legitimate brands make this part transparent and straightforward, because they know regulators watch this closely.
Locate the “No purchase necessary” clause
This is the lifeline under the sweepstakes model. It means you can access the bonus or SC path without making purchases.
If there is no clear Alternate Means of Entry (AMOE) or the “no purchase” clause reads like legalese that’s almost meaningless, this is a major warning sign.
A genuine sweepstakes structure requires a free route (mail-in, online, etc.); otherwise, it veers into gambling territory. Legal, tested sweeps casino apps will always provide free sign-up and gameplay.
Where Are Sweepstakes Casinos Illegal?
So, where are sweepstakes casinos illegal? The list is no longer confined to a token few. Washington, Idaho, Michigan, and Nevada have drawn hard lines, each in its own way. Washington goes so far as to classify prize-redeemable sweepstakes as gambling outright. Idaho allows only the play-for-fun side of the model, stripping away Sweeps Coins entirely. Michigan, with its fully regulated iCasino market, has pushed unlicensed sweepstakes operators out.
And Nevada, despite being the home of Las Vegas, blocks sweepstakes sites that fall outside state oversight. On top of that, pressure is mounting elsewhere: New York and New Jersey have passed new measures curbing operators, while Montana’s ban is set to take effect in October 2025. That said, availability still hinges on where you live and on how cautious each operator decides to be.
A handful of others may impose restrictions that make redemption impossible, even if you can technically create an account. Most sweepstake casinos in the USA remain accessible across the country, operating under rules that clarify how sweepstakes casinos are legal despite real-money gambling prohibitions.
- In Idaho, you cannot participate in Promotional Play with Sweeps Coins, and no cash prize redemptions are available. However, you can still play for fun using Gold Coins, although most popular sweeps sites do not operate in the state.
- While technically still legal in Michigan, the Michigan Gaming Control Board views sweepstakes casinos as illegal and started sending cease-and-desist letters to operators at the end of 2023. The few remaining active operators will likely leave this market soon.
- Sweepstakes casinos are legal in Nevada, but many sites have opted not to operate in the state.
Beyond USA Sweepstakes Casinos: Where are sweepstakes casinos illegal?
Sweeps online casino is not solely an American operation. While USA sweepstakes casinos dominate, the story doesn’t end at the border. The sweepstakes casino model is crossing borders.
Take Canada. North of the border, sweepstakes casinos are open to everyone except Quebec, where regulators have decided that prize-based online gaming is out of bounds. Everywhere else, the familiar two-currency model applies: Gold Coins for fun, Sweeps Coins for prizes. Canadians can play, collect, and redeem, provided they meet the same verification and eligibility standards as their U.S. counterparts.
Australia’s regulators are notoriously tough on anything that looks like online gambling. What you’ll find there are sweepstakes-style games in name only. Promotional or social setups with entertainment value, but little to no path toward cash prize redemption.
In the UK, social sweepstakes can exist under tight licensing rules, but even there, the red tape is heavy. Move onto the continent, and the story changes again: Germany, France, the Netherlands. Many of these markets clamp down hard, restricting prize-based platforms, citing consumer protection.
Overall, nowhere else has matched the U.S.A sweepstakes casino model for legality, accessibility, and actual prize redemption. Yes, three or four states are restricted, but the majority of Americans can log on, play legally, redeem prizes, and enjoy the experience of an online sweepstakes casino legally.
Will Online Sweepstakes Casinos Be Allowed In More States In the Future?
There is no indication whether any of the states where sweepstakes casinos are illegal will make any changes to their sweepstakes laws.
Given how recently Michigan started ordering sites to leave the state, it is unlikely the state will change its stance. The Michigan Gaming Control Board is among the most active regulatory bodies in protecting legal online casinos and sportsbooks.
The good news is that if you live in the Great Lakes State, you have access to legal online gambling options.
The next one, Idaho, is among the most conservative states, making them reluctant to allow any form of gaming. In 1992, the state changed its constitution to prohibit gambling besides the lottery, charitable bingo, and pari-mutuel betting.
That means passing gambling expansion laws is likely an uphill battle and would require a constitutional amendment.
Meanwhile, Washington is an interesting case as the state is known as one of the most liberal in the US. However, its stance on sweepstakes casinos is a bit more conservative, which is out of character.
Last year, a Washington federal judge signed off on a $415 million class-action settlement by DoubleDown Interactive and its former parent company, International Game Technology (IGT).
In this case, two Washington plaintiffs argued that DoubleDown’s four sweepstakes casinos fell under the state’s illegal gambling definition.
How Do Sweepstakes Casinos Verify Your Location?
By law, sweepstakes casinos must ensure you are over the legal age to play and that you are residing in a legal state. That’s why these sites use geolocation technology to verify your location.
The most common way to verify your location is through your IP address, a numeric label your internet service provider assigns to you. The IP address recognizes your device and tracks its location. If you are using a mobile device, additional means of tracking include GPS and Bluetooth.
If a sweepstakes casino cannot determine your location, you will be blocked. That is also the case if you use a Virtual Private Network (VPN), which can be identified through tracking technology. Even if your VPN can bypass that, you won’t be able to redeem prizes.
Note that you could be subject to criminal prosecution if you are caught playing via VPN. When you sign up, one of the first things you agree to is that you are over the legal age and a resident of a legal jurisdiction.
Know Your Customer Verification Process
Sweepstakes casinos use the Know Your Customer (KYC) verification process for redemptions and sometimes purchases. KYC confirms your identity and age, acting as a safety and regulation tool against financial crimes and money laundering.
Before redeeming (and sometimes purchasing), you must complete the KYC process by uploading certain documents, including the following:
- Proof of Identity: You must upload a valid government-issued photo ID, such as a driver’s license or passport. Some casinos will then require that you upload a selfie to match the document.
- Proof of Address: Another common requirement is to prove your address, where you will have to upload a recent utility bill that includes your legal name and address.
- Bank Statement: You might also have to upload a bank statement, where your name must match your account. This is another way that they safeguard against financial crimes.
How To Sign Up For a Sweepstakes Casino
The easiest way to sign up for a sweepstakes casino is through our exclusive links, which will take you to the registration page.
The signup process is easy and only takes minutes. Just follow this step-by-step guide:
- Click “Get Bonus" to visit the sweepstakes casino page.
- Select “Register" or “Sign Up" to start the registration process. You can sign up using your email or with your Facebook or Google account.
- Provide your personal information.
- Type in the promo code if required to unlock the welcome bonus.
- Agree to the terms and conditions to confirm that you reside in an eligible state and are over the legal age.
- If you signed up through e-mail, you should receive a verification code to activate your account.
- If you signed up through email, you should receive a verification code to activate your account. You may also need to confirm your phone number for additional security. Once the verification process is complete, you are all set to play at the sweepstakes casino.
Once your account is live, gameplay is always free. If you want to extend your sessions beyond the daily bonuses, however, you can purchase optional Gold Coin packages, which often come bundled with Sweeps Coins. The best sweepstakes casinos payment methods include everything from debit and credit cards to PayPal and even gift card options.
Please note that some casinos may require additional steps to unlock the full welcome bonus, including connecting your Facebook account if you signed up through email. You might also have to provide more personal information, like your address, date of birth, and more.
Since sweepstakes casinos are always free to play, we suggest signing up for as many operators as possible. That way, you can earn a no-purchase bonus at each site, providing you with more opportunities to win additional coins.
Don’t miss out on these valuable on all the ways to get free SC coins.
Are Sweepstakes Legal? Verdict
Sweepstakes casinos are legal because they don’t cross the line into traditional gambling. Instead, these platforms run on a dual-currency system. Gold Coins for play and Sweeps Coins for promotional entries.
This structure withstands the legal tests across much of the U.S. But the reach is not absolute: states such as Washington, Idaho, Michigan, and Nevada have drawn hard lines, and several others remain zones where operators themselves choose to stay away rather than risk regulatory pushback.
Eligibility still matters. You must be at least 18 or 21 years old, depending on state rules. You must live in a jurisdiction where sweepstakes play is allowed. And you must verify your identity before redeeming eligible Sweeps Coins. If you want to try it yourself, signing up is straightforward.
You can register through your browser or download one of the tested sweeps casino apps. While Canada, Europe, and Australia wrestle with restrictions, the U.S. remains the one market where legality, accessibility, and actual prize redemption meet on the same platform.
Legal Sweepstakes Casinos FAQ
Find out more about where sweepstakes casinos are legal with our FAQ.
