The Centennial State keeps real-money gambling on a tight leash – but Colorado’s sweepstakes casinos are the official workaround. No chips, no wagers, no licenses. Just virtual coins, free entries, and cashable prizes. If you’re in your home state and want to know which sites are live, what you can win, and what’s big in 2025, this page covers it all.
Jovan I.
Content Writer
Last updated
27 May 2025
Just because a site calls itself a “sweepstakes casino” doesn’t mean it’s actually legal here. Colorado law is more than clear – if you’re playing games of chance online, the platform must follow specific rules to avoid being treated as illegal gambling.
Before you spend a dime (or even sign up), make sure the site meets all of these legal requirements:
If a site forces you to pay – even in a roundabout way – just to enter or win, that’s not legal here. Colorado law says a real sweepstakes must offer a free way to play.
Whether you buy credits or use a free entry, your chance of winning has to be exactly the same. If paying gives you a better shot, the whole thing tips into illegal territory.
Every sweepstakes needs to lay out the facts: what you can win, how many prizes there are, your odds, the deadlines, and who’s behind the promotion. If you have to dig to find that info (or it’s missing), that’s a red flag.
Colorado law doesn’t set a specific sweepstakes age, but to avoid being classified as gambling:
If a sweepstakes includes the wrong elements or skips required protections, it’s no longer legal. Here’s what crosses the line:
That’s illegal gambling. You’re risking something of value for a chance to win.
Law: Defined in C.R.S. § 18-10-102(2) – defines gambling as risking anything of value for gain determined by chance.
That’s a simulated gambling device. It doesn’t matter if the game is labeled as a sweepstakes – if it mimics casino play and involves payment for a chance to win something of value, it breaks the law.
Law: Defined in C.R.S. § 18-10.5-103 – bans simulated gambling devices, including electronic or software-based games that award prizes.
That’s considered a sham free entry. If the free method is intentionally inconvenient or hidden, the promotion is not legal
Law: Defined in C.R.S. § 6-1-802 – mandates that “no purchase necessary” must be genuine and clearly offered.
That’s functionally a casino payout. Giving real-world value (cash, gift cards) through games of chance with payment involved crosses into illegal gambling.
Law: Defined in C.R.S. § 6-1-803(1)–(5) – mandates visible prize details, odds, deadlines, and sponsor info.
Just because a sweepstakes casino game says it’s “free to play” doesn’t make it legal. Colorado law focuses on what the game actually does, not how it’s advertised.
If you have to make a purchase to unlock gameplay, credits, or entries – even indirectly – it still counts as payment under the law. And if the game involves chance and offers a prize, it becomes illegal gambling, no matter the label.
In Colorado, a sweepstakes prize must comply with the rules laid out in the Colorado Consumer Protection Act.
That means:
If you win real-world prizes playing sweepstakes casinos in Colorado, you owe taxes – it doesn’t matter if the site is licensed, based out of state, or never sends you a form.
You must report anything you win that has real value:
Colorado uses your federal adjusted gross income (AGI) to calculate state taxes – so if it’s taxable to the IRS, it’s taxable here too.
Sources:
You must include your sweepstakes income on Colorado Form DR 0104. The state taxes it the same way it taxes your paycheck or freelance income.
In 2025, you pay a flat 4.4% state income tax on it.
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Don’t wait for the operator to handle your taxes. If you win and cash out, it’s on you to track it and file it. The IRS and Colorado DOR can hit you with penalties if you don’t.
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Compare Colorado with its closest neighbor states
The top-rated sweepstakes casinos in Colorado are Fortune Coins casino, Pulsz casino, LuckyLand Slots, Chumba casino, High 5 casino, Stake.us, Funrize, Sweeptastic, McLuck casino, Chanced, and Zula casino.
All online sweepstakes casinos are legal in Colorado if they adhere to the Colorado Consumer Protection Act and follow the federal laws regulating sweepstakes gambling.
Yes, it’s possible to access sweepstakes casinos in Colorado outside of the state as long as that state permits sweepstakes gambling. However, the platform must allow free participation in games without required payments.
The legal gambling age in Colorado is 21, meaning younger players shouldn’t engage in these activities. Otherwise, they will face legal consequences.
The flat income tax on Colorado casino winnings is 4.40%. All winnings are taxable; however, players must also pay federal income taxes of 24%. Additionally, the taxes could increase depending on your annual taxable income and marital status. You can use many gambling tax calculators to see how high your taxes will be.
Colorado sweepstakes platforms offer significantly better bonuses than other states. Players can expect welcome bonuses, login bonuses, deposit bonuses, no-deposit bonuses, daily bonuses, social media bonuses, referral bonuses, and weekly bonuses.
