Americans are on track to spend more than $11.4 billion at sweepstakes casinos in 2025 – without technically placing a real-money bet. The model they operate on is classified as promotional gambling rather than real betting – but a growing number of states are starting to disagree. In this guide, we explain where sweepstakes casinos are legal and why enforcement is heating up.
Sweepstakes casinos market themselves as a completely legal alternatives to real-money gambling.
Now, true gambling is typically defined as a game that has three main ingredients combined – (1.) a prize, (2.) an element of chance, and (3.) consideration (i.e., you pay to play). If all three are present, the game is usually regulated by strict state laws or banned outright.
To elegantly skirt around any kind of gambling laws, the sweepstakes casino model uses a clever little workaround, with a big effect: Instead of paying outright to play, you get your hands on a virtual coin – a game-only currency with no cash value – and receive bonus Sweeps Coins with your order.
And it is exactly these Sweeps Coins that will give you access to casino-style games where you can actually win redeemable prizes or cash.
In most cases though, the number of Sweeps Coins you receive is almost equal to the number of dollars spent.
Many courts and regulators have now started doing the math by putting the facts on the table: If you spend $20 and get 20 Sweeps Coins – then use them to spin a slot and win $100 in cash – haven’t you just gambled?
And that’s why US states like California, Florida and New York have begun to raise their legal eyebrows.
Below, we’ve discussed the top-rated sweepstakes casinos in the US. It’s important to note that the legal status of these gaming sites varies from state to state.
| Casino | Illegal States | Minimum Age | Top Features |
| Sweepslots | Washington, Delaware, Idaho, and Kentucky | 18+ | – Free daily rewards
– User-friendly interface – No purchase is required to play |
| TaoFortune | Michigan, Idaho, Washington, DC, Wyoming, and Utah | 18+ | – Round-the-clock customer support
– Excellent ongoing promotions – Daily rewards
|
| Stake.us | New York, Vermont, Washington, Idaho, Kentucky, Michigan, and Nevada | 21+ | – Extravagant signup bonus
– Titles from top game software – No real money purchases are required |
| Sweeptastic | Michigan, Idaho, Nevada, and Washington | 18+ | – Large game library
– Generous signup bonus – Crypto-exclusive promos |
| LuckyBird | Kentucky, Michigan, Washington, and Nevada | 18+ | – Mobile-friendly games
– Live chat is available – Distinctive ways to use your virtual token |
We are aware of the importance of fairness, trust, and entertainment value when selecting an online sweepstakes casino. As such, we’ve got a particular process for how we rate sweepstakes casinos through which we evaluate, test, and rank each of the casinos we recommend on our pages:
Currently, almost every state in the US, allows you to play at sweepstakes casinos. US online gambling laws are more concerned with wagering real money on games of chance. Sweepstakes, however, don’t have the element of real cash wagering, therefore, the usual laws don’t apply.
For example, New York only allows sweepstakes to operate legally due to the lack of the element of consideration (monetary expenditure). Simply put, all the sites provide free-to-play sweepstakes casino games with no purchase required.
Here’s a full list of US states where you can enjoy various games on the best sweepstakes casino sites:
| Alabama | Alaska | Arizona | Arkansas |
| California | Colorado | Connecticut | Delaware |
| Florida | Georgia | Hawaii | Illinois |
| Indiana | Iowa | Kansas | Kentucky |
| Louisiana | Maine | Maryland | Massachusetts |
| Michigan | Minnesota | Mississippi | Missouri |
| Montana | Nebraska | Nevada | New Hampshire |
| New Jersey | New Mexico | New York | North Carolina |
| North Dakota | Ohio | Oklahoma | Oregon |
| Pennsylvania | Rhode Island | South Carolina | South Dakota |
| Texas | Tennessee | Utah | Vermont |
| Virginia | West Virginia | Wisconsin | Wyoming |
Still in a bid to address the subject – are sweepstakes casino legal, we’ll explain how these gaming platforms can operate in this country lawfully. The US gambling laws state that three elements must be present for what’s considered illegal gambling. These include consideration, chance, and the opportunity to win real cash prizes.
Under the sweepstakes operating model, these social casinos utilize two virtual currencies (Gold Coins and Sweeps Coins), meaning no cash entry activity is present in sweepstakes – thus compliant with the Unlawful Internet Gambling Enforcement Act (UIGEA). While you can redeem SCs for real-world prizes, GCs can only be used to play for fun.
Sweepstakes are subject to regulation by federal and state laws alike. Exactly so, The Federal Trade Commission (FTC) oversees the activities of the social casinos. For example, they require the casinos to include certain info in their T&Cs such as odds, what the prizes are and their value, and how players can redeem prizes.
At the state level, the State Attorney General (AG) is the authority mandated to oversee online sweepstakes activities.
Still in a bid to address the subject – are sweepstakes casino legal, we’ll explain how these gaming platforms can operate in this country lawfully. The US gambling laws state that three elements must be present for what’s considered illegal gambling. These include consideration, chance, and the opportunity to win real cash prizes.
Under the sweepstakes operating model, these social casinos utilize two virtual currencies (Gold Coins and Sweeps Coins), meaning no cash entry activity is present in sweepstakes – thus compliant with the Unlawful Internet Gambling Enforcement Act (UIGEA). While you can redeem SCs for real-world prizes, GCs can only be used to play for fun.
Sweepstakes are subject to regulation by federal and state laws alike. Exactly so, The Federal Trade Commission (FTC) oversees the activities of the social casinos. For example, they require the casinos to include certain info in their T&Cs such as odds, what the prizes are and their value, and how players can redeem prizes.
At the state level, the State Attorney General (AG) is the authority mandated to oversee online sweepstakes activities.
Still in a bid to address the subject – are sweepstakes casino legal, we’ll explain how these gaming platforms can operate in this country lawfully. The US gambling laws state that three elements must be present for what’s considered illegal gambling. These include consideration, chance, and the opportunity to win real cash prizes.
Under the sweepstakes operating model, these social casinos utilize two virtual currencies (Gold Coins and Sweeps Coins), meaning no cash entry activity is present in sweepstakes – thus compliant with the Unlawful Internet Gambling Enforcement Act (UIGEA). While you can redeem SCs for real-world prizes, GCs can only be used to play for fun.
Sweepstakes are subject to regulation by federal and state laws alike. Exactly so, The Federal Trade Commission (FTC) oversees the activities of the social casinos. For example, they require the casinos to include certain info in their T&Cs such as odds, what the prizes are and their value, and how players can redeem prizes.
At the state level, the State Attorney General (AG) is the authority mandated to oversee online sweepstakes activities.
Comparing the availability of these two, we would say that Sweepstakes beat the real money online casinos by a mile. Sweeps are available in 48 states, while their counterparts are available in just six states. This has seen sweepstakes casinos popularity grow by leaps and bounds.
From our extensive analysis experience, we can even argue that you get bonuses with better T&Cs at Sweeps than you would at a typical online casino. Similarly, traditional gambling requires an initial deposit, while sweepstakes require no deposit to play – and you still earn real cash prizes.
Now you understand why are sweepstakes casinos legal across most of the states in the USA, and how you can find the best site to join for free. They simply thrive because their operation model isn’t considered illegal gambling. By using virtual tokens such as Sweeps Coins and Gold Coins, they allow players to enter and enjoy casino-style games for free.
Still, a few states consider Sweepstakes activities illegal such as Idaho, Washington, and Michigan. Therefore, you’ll do well to understand the legal landscape within your state before attempting to join any online sweepstakes casino to play.
Yes, sweepstakes are legal in almost all US states, where traditional online casinos aren’t.
Players can legally join and play at sweepstakes casinos and redeem real cash prizes or vouchers.
Online sweepstakes operate legally in Texas as long as no purchase is required to enter and the casino is compliant with federal and state laws.
Sweepstakes in the UK are governed by the Gambling Act 2005. Under the Act, a promotion or competition isn’t considered illegal if no purchase is needed to enter or if it meets the skills test.
Wallach, D. (2025, February 24). Legality in doubt, sweepstakes casinos could be targeted by state attorneys general. Forbes. Link
