The Legality of Sweepstakes Casinos Across the U.S. In 2026

These laws make it illegal to run or promote a lottery from one state to another, including by mail or broadcast.

When we say “lottery,” we’re referring to any game that includes:

• A prize
• Chance (the outcome is random)
• Consideration (you have to pay or give something of value to enter)

👉 Key Takeaway

Sweepstakes operators stay within the law by getting rid of the “pay-to-play” part. That’s why free entry options like mail-ins or daily bonuses are so important.

🏛️ Statues:

• View 18 U.S. Code § 1301
• View 18 U.S. Code § 1302
• View 18 U.S. Code § 1303
• View 18 U.S. Code § 1304

The Deceptive Mail Prevention and Enforcement Act has some very specific rules about how sweepstakes have to be marketed through the mail. For example, it’s illegal to make false claims like “You’re a winner!” if you’re not, and it’s also illegal to suggest that buying something will improve your odds.

👉 Key Takeaway

If sweepstakes are promoted by mail, they 100% must:

• Say clearly that no purchase is necessary
• Accept mail-in entries without requiring any payment

🏛️ Statue:

• View 39 U.S. Code § 3001

This law lets the FTC put a stop to any unfair or misleading business practices. This includes things like wrongly advertised sweepstakes bonuses or misleading information about the number of games available.

👉 Key Takeaway

All legal sweepstakes operators must operate truthfully and transparently. That includes:

• Accurate odds
• Honest prize descriptions
• Clear eligibility rules

Fake claims or shady promotions? Well, in theory, that can get shut down pretty fast.

🏛️ Statue:

• View 15 U.S.C. § 45

This one is important when sweepstakes operators try to push you over the phone. The law makes sure there’s no glossing over the fine print, especially when prizes are involved.

👉 Key Takeaway

If you run or promote sweepstakes by phone, you must:

• Say up front that no purchase is required
• Be honest about what people can win
• Avoid any bait-and-switch tactics

🏛️ Statue:

• View 16 C.F.R. Part 310

A law that applies to email marketing of sweepstakes.

👉 Key Takeaway

Sweepstakes emails must:

• Let users opt out easily
• Avoid misleading subject lines (no “You’ve won!” unless they actually have)

🏛️ Statues:

• View 15 U.S.C. §§ 7701
• View 15 U.S.C. §§ 7702
• View 15 U.S.C. §§ 7703
• View 15 U.S.C. §§ 7704
• View 15 U.S.C. §§ 7705
• View 15 U.S.C. §§ 7706
• View 15 U.S.C. §§ 7707
• View 15 U.S.C. §§ 7708
• View 15 U.S.C. §§ 7709
• View 15 U.S.C. §§ 7710
• View 15 U.S.C. §§ 7711

These are rulings from courts and guidance from regulators like the FTC, USPS, and state attorneys general.

👉 Key Takeaway

They shaped the standard definition of illegal gambling: Prize + Chance + Consideration.

Sweepstakes operators rely on this interpretation to operate legally, especially by dropping the “consideration” (payment) piece.