Legality of Sweepstakes Casinos

Sweepstakes casinos are one of the newest phenomena in online gaming entertainment, and many people have asked if they are legal.

Is it possible to legally play online casino-style games from 45 states? And the answer is yes, due to these sweepstakes casinos operating under the sweepstakes model, you are able to play for free and redeem real prizes at these sweepstakes casinos.

Top Sweepstakes Casinos and Their Legal States 

The Legal Framework Behind Sweepstakes Casinos

Sweepstakes casinos operate under the sweepstakes model – which means you’re not gambling, instead entering a sweepstakes competition.

Federal Laws Governing Sweepstakes Casinos

There are three main laws that impact the legality of sweepstakes casinos – consideration, chance, and opportunity to win a prize.

Consideration is the cash entry into an activity, and since sweepstakes casinos are always free to enter and you use one of two unique coins to place wagers, and not real money, they meet the legal threshold here.

Chance – simply put – is the law that state the sweepstakes must provide the chances of winning, and that making a purchase does not improve their chances.

State Laws and Their Impact on Sweepstakes Casinos

A majority of states follow suit when it comes to the federal laws regarding sweepstakes contests and in turn, sweepstakes casinos. However, there are a couple of states that have outright banned sweepstakes casinos and may only allow play with Gold Coins.

Idaho does not allow players to play with sweep coins, only Gold Coins. The Michigan Gaming Control Board views sweepstakes casinos as illegal and began sending cease-and-desist letters to the top sweepstakes operators in 2023. However, you can play at and claim these Michigan online casino no-deposit bonuses.

How Sweepstakes Casinos Stay Legal

Sweepstakes casinos operating under the sweepstakes model are able to stay legal in the United States for a couple of different reasons – the main one being that they are technically sweepstakes rather than online gambling.

The "No Purchase Necessary" Rule

All sweepstakes casinos are always “no purchase necessary”, which allows them to operate under the sweepstakes model.

All sweepstakes casinos will offer a Gold Coin (or other virtual coin) you can play, which is always strictly for fun, and no prizes or winnings can be redeemed.

Alternative Methods of Entry (AMOE) 

You can also earn sweepstakes coins and/or gold coins through an alternative method of entry.

This can look different at each sweepstakes casino; however, the premise is the same. Rather than purchasing sweepstakes coins, you can earn free sweepstakes coins through no-purchase bonuses, leaderboards, or mail-in postal requests – you can always play for real prizes and more at sweepstakes casino without making a purchase.

States Where Sweepstakes Casinos Are Legal

Although the federal government has no problem with sweepstakes, a couple of states have passed laws or seen the laws differently. So you won't be able to play at sweepstakes casino from every state.

Fully Legal States 

A majority of the states in the US – 42 of them to be exact – have fully legalized sweepstakes casinos.

• Alaska

• Arizona

• Arkansas

• California

• Colorado

• Connecticut

• Delaware

• Florida

• Georgia

• Hawaii

• Illinois

• Indiana

• Iowa

• Kansas

• Louisiana

• Maine

• Maryland

• Massachusetts

• Minnesota

• Mississippi

• Missouri

• Nebraska

• New Hampshire

• New Jersey

• New Mexico

• New York

• North Carolina

• North Dakota

• Ohio

• Oklahoma

• Oregon

• Pennsylvania

• Rhode Island

• South Carolina

• South Dakota

• Tennessee

• Texas

• Utah

• Vermont

• Virginia

• West Virginia

• Wisconsin

• Wyoming

Restricted States

• Nevada

• Montana

• Kentucky

• Alabama

Nevada does not have a set in-law ban on sweepstakes casinos, but the sweepstakes casino operators have not yet launched in the state due to the different laws surrounding online gambling.

States like Georgia, Montana, Kentucky and Alabama have no official ban on sweepstakes casinos – however, some operators elect not to operate there.

Banned States

• Michigan

• Washington

• Idaho

There are a couple of states – including Michigan and Washington– which have an outright ban on sweepstakes casinos.

A couple of states have restricted sweepstakes casino play, such as Idaho, which only allows players to play with Gold Coins—not sweepstakes coins.

This means that while you can play for fun with Gold Coins, you cannot play with sweepstakes coins and can not redeem your winnings for real prizes.

Regulation of Sweepstakes Casinos

Sweepstakes casinos are not the same as real money online casinos, but often times will fall under similar laws and legal legislation as the real money operators. For example, the Federal Trade Commission will oversee both; and both are affected by the Unlawful Internet Gambling Enforcement Act.

Federal Trade Commission (FTC)

According to the FTC, sweepstakes casinos may offer popular casino style games including slots and blackjack – but it requires sweepstakes to be free to enter and no purchase being required to win.

It also requires information regarding the odds to win, what the prizes are, and how a player would redeem a prize. It also requires players to have the ability to have an alternative method of entry which includes submitting a request through mail, logging into your account,  or subscribing to an email or text message list.

Unlawful Internet Gambling Enforcement Act (UIGEA) 

The Unlawful Internet Gambling Enforcement Act was established in 2006, which prohibits gambling businesses from knowingly accepting payments in connection with the participation of another person in a bet or wager that involves the Internet.

State Gaming Commissions

State gaming commissions have, in general, stayed out of the sweepstakes casino business due to their operating under the sweepstakes model.

However, there are a couple of gaming commissions, such as Michigan, Washington, and Idaho, that have stepped in and limited the operations of sweepstakes casinos.

Another example of limitations applies, is Florida and New York limiting prizes over $5,000 void and unattainable.

Consumer Protection and Responsible Gaming

Consumer protection and responsible gambling is a very important part of the sweepstakes casino industry, especially since it isn’t true online gambling – you still want to be protected when playing.

Fair Play Guarantees

In order for sweepstakes casinos to operate, they are required to offer fair play guarantees to its consumers. This is done in a variety of ways, including publishing the RTPs of its games, ensuring that players who make purchases do not have increased odds, and ensuring that it is possible to win real prizes

Responsible Gaming Resources 

A majority of the sweepstakes casinos will offer a number of responsible gaming tools and resources to ensure your is being done responsibly and within your means.

These tools may include, but are not limited to, Purchase Limits, Time Limits, “Take a Break”, and self exclusion:

• Purchase Limits: Limits the amount of Gold Coin purchase you can make over a day, week, month or year.

• Time Limits: Limits the amount of time you may spend on the site over a day, month, or year.

• Take a Break: Temporarily suspends your account of up to 6 months. You will not be able to access your account during this time.

• Self-Exclusion: The most impactful of the options on this list. Closes your account for a minimum of 6 months, and requires a series of steps to reactivate it.

Final Thoughts on Sweepstakes Casino Legality

Sweepstakes casinos operate legally in the United States under the sweepstakes model – which allows them to offer free-to-play casino style games to 45 US states.

It’s important before you sign up to realize and understand how and why these casinos are able to operate legally, and after reading this page you should have a greater understanding of the sweepstakes model.