If you live in California, you already know online gambling isn’t legal here. No state-licensed casinos, no poker apps, no real-money slot games. But California sweepstakes casinos are a legal exception – as long as they follow the rules. This page is your go-to resource. You’ll find which sites are open to California players, what makes them compliant, and how to spot the ones that aren’t.
Renzo A.
Content Writer
Last updated
29 May 2025
If you see an operator on our list of sweepstakes casinos, then it meets all the criteria for California players.
Now, why is that important? Because there’s a very fine line between online gambling and sweepstakes – and if a site crosses it, it’s no longer legal.
Here’s how it breaks down:
| ❌ Real-Money – Gambling |
✅ CA Sweepstakes Casinos | |
| Entry requires payment | Yes | No; must offer a free way to play |
| Odds improve when you pay | Usually | Not allowed under CA law |
| Regulated by CA gambling law | Yes | Governed by sweepstakes law |
| Legal to offer in California | No | Yes; under 📘 BPC § 17539.15 |
💡 Note – The second a site adds payment + chance + prize, it becomes an illegal lottery under 📘 Penal Code § 319. If it also looks and feels like a slot machine? That’s 📘 Penal Code § 330b – and it’s banned.
They don’t treat them like gambling because you’re not betting money, and you don’t need to pay to enter. That’s the key difference.
🟦 Read our full guide: → Why sweepstakes casinos are legal in most states
💡 Note – Almost every legit site will geolocate you. If you’re out of bounds, you’re out of luck. And if you spoof your location, don’t expect support when it’s time to collect.
Every California-legal sweepstakes casino uses two coin types:
You don’t have to pay to get SCs. Sites offer:
Sweepstakes only stay accessible in California if the rules are followed – by the site, and by you.
That means meeting basic requirements around age, location, and how you play.
Break those rules, and it’s not the state that comes knocking, it’s the opeator that can shut you down. Here’s what you need to know before you risk your account (or your prizes).
✅ You must be 18 or older (some sites require 21)
✅ You must be physically in California — no VPNs, no location spoofing
✅ You can only have one verified account per person
✅ You can’t use someone else’s identity to register or redeem
Break those rules, and here’s what you’re risking:
❌ Your account can be banned
❌ Your prizes or coins can be voided
❌ Your cashout can be denied
❌ You can lose access to future offers
Sources
Watch for these red flags:
🚫 You have to pay just to enter or unlock sweeps games
🚫 Free entry options are hidden or missing
🚫 Spending money gives you better odds
🚫 The games look and play like real-money slots
🚫 You’re told you “won” before actually entering
💡 Note – Sites that do this aren’t just shady; they’re directly skirting the law:
At any official California sweepstakes casino, you can redeem prizes like:
💸 Real cash (via PayPal, direct deposit, or a check)
🎁 Gift cards and store credit
📦 Physical items like electronics, collectibles, or branded merch
What you won’t find among the prizes:
That would be alcohol, tobacco, or firearms. Those items are by law banned from California sweepstakes (BPC § 17539.15(a)(4)).
💡 Note – if a site skips the details, like what’s being offered, how many prizes are left, or how your odds work – well then that’s a red flag. California law says all of that has to be clearly laid out in:
So if you can’t find it? Don’t play there.
Cash? Taxable. Gift cards? Taxable. That nice and shiny MacBook you won from a sweepstakes contest? Also taxable.
Here’s what to expect when you win something that matters. We’ll cover when the tax forms show up, what happens if they don’t, and how California figures out what you owe.
Any sweepstakes prize with real value – cash, gift cards, electronics, or redeemable coins – is considered taxable income in California. This isn’t optional. Both the IRS and California Franchise Tax Board treat these wins the same as regular earnings.
There’s no threshold for sweepstakes income to “start counting.” If you redeem a $10 gift card or win $20 worth of Sweeps Coins, you’re expected to report it.
If you win $600 or more from one platform, and the prize is worth at least 300 times your entry, the site should send you a 1099-MISC. That’s the IRS’s official reporting form for sweepstakes wins. Some sites send them. Many don’t, especially if they’re based outside the U.S.
You’re responsible for reporting all of your sweepstakes income, even if the operator doesn’t send paperwork. The IRS expects it on your return. California does too.
The state doesn’t calculate sweepstakes winnings separately. It pulls directly from your federal adjusted gross income (AGI). If your prize is taxable at the federal level, it’s taxed here as well – same rate, no special treatment.
See how California’s sweepstakes laws compare to nearby states.
The key law is BPC § 17539.15, which lays out the rules for legal promotional contests. As long as there’s no required purchase, no boosted odds for buyers, and all prize details are clear, sweepstakes casinos are allowed.
If the site requires payment to play, hides the free entry option, or gives paying users better odds – it crosses into illegal gambling. Add in games that mimic real slots, and it could violate Penal Code § 319 and § 330b.
Yes. Any prize with real value – cash, gift cards, electronics – is considered income. If you win over $600, you may get a 1099-MISC. Even if you don’t, you still need to report it (covered under IRS Publication 525 and California Revenue & Taxation Code § 17071).
Yes, if you’re physically in the state when you play. Almost all sites use geolocation. You don’t have to live in California – but you do have to be here when you play. VPNs usually won’t work.
