In Rhode Island, real-money online casinos are tightly controlled – but sweepstakes casinos slip through a legal side door. You’ll play with two types of coins: one for fun, one that can be redeemed for real prizes. And because you’re never required to pay, these sites avoid being classified as gambling under RI law. And that’s the loophole. Here’s what else you need to know before playing at Rhode Island sweepstakes casinos.
Jerard V.
Content Manager
Last updated
18 June 2025
Restricted sweepstakes casinos in Rhode Island
If you’re playing sweepstakes casinos from Rhode Island, you’re not flying blind.
The state draws a pretty clear line: if there’s a prize, it’s awarded by chance, and you have to pay to enter – that’s gambling. Remove the payment? It’s not gambling anymore. That’s the space sweeps sites fit into.
Here’s how the law breaks down – and what each part means for you.
This is the big one. It bans any kind of private lottery, game of chance, or gambling device – unless the state signs off. That’s why only Bally’s can legally run an online casino in Rhode Island. Anything else has to avoid the “gambling” definition entirely.
✅ Why RI sweepstakes casinos don’t trigger this law:
Why it matters to you:
If a site removes its free entry method or forces you to buy in to join the sweepstakes, it’s instantly at risk of violating § 11-19-1. That’s when the state could block the site or force it to shut down access in RI – and you might lose access to your account or unclaimed prizes without notice.
This one isn’t about gambling at all – it’s about keeping prize giveaways honest. It kicks in for any promotion where the total prize value goes over $500 (so basically every real sweepstakes site).
✅ Here’s what sites legally have to do:
Why it matters to you:
If a site says you’ve won a jackpot and then buries you in fine print – or asks for a weird processing fee – it’s not playing by § 42-61.1. And while the state could act against them, your prize likely won’t be protected. Stick to platforms that put their rules and odds front and center. If it’s hard to find those? That’s a red flag.
This one acts as your backstop. It gives the state power to go after any deceptive or unfair business practice – even outside gambling.
❌ What counts under § 6-13.1:
Why this matters to you:
Even if you’re not technically “gambling,” this law still applies. If a platform crosses the line, the state can shut it down. That means your account could disappear overnight – and in most cases, you won’t get anything back. So if a site ever feels sketchy or inconsistent, don’t wait. Cash out and elegantly walk away.
Short answer: no – there aren’t any state laws written specifically for sweepstakes casinos.
What Rhode Island does have are general gambling laws – and that’s what actually matters. If a site crosses into “gambling,” it falls under the state’s ban. If it avoids that label, it’s allowed.
So when people talk about sweepstakes laws in Rhode Island, they really mean gambling restrictions – and how these platforms get around them.
If you’re in Rhode Island, you can use sweepstakes casinos and social casinos – but only if the platform plays by the rules.
Here’s what the law allows:
As long as the operator offers a free entry route (like login bonuses or mail-in options), signing up is legal. No purchase = no gambling under Rhode Island law.
You can receive SC through free daily bonuses, contests, or the alternate mail-in method. These count as legal, no-cost sweepstakes entries.
Gold Coins are always OK. They’re just entertainment currency – no value, no redemption, no gambling. You can spin all you want in GC mode.
If your SC came from a legal, free-entry method, and the site honors its redemption policy, you’re good. As long as you didn’t pay to enter, it’s not gambling – even if you win real money.
Sweepstakes casinos are allowed in Rhode Island – but only if they follow the rules. Some platforms don’t. And if they slip up, you’re the one who could lose access, coins, or prizes.
Here’s how to spot the risks.
If a site makes you pay just to enter sweepstakes games, it crosses the line.
You risk:
Losing your account, your Sweeps Coins, and any unclaimed prizes.
🔍 Check this:
Can you access any sweepstakes games without buying coins? If not – red flag.
Every legit sweepstakes site has to offer a no-purchase way to play.
If those aren’t obvious, that’s a problem.
Why it matters:
Without free entry, the platform may be violating sweepstakes law and Rhode Island rules.
🔍 Check this:
Look for a “No purchase necessary” section in the FAQ or terms.
Some platforms throw up sketchy “You’ve won!” popups – and then ask for payment.
You risk:
Getting baited into paying for a prize you never actually get.
🔍 Check this:
Were you told you “won” something before you even played? Did they ask for money to claim it? That’s not legit.
Not every sweepstakes casino is worth your time – or your trust. In our opinion, these types of sites fall short of what’s safe or transparent for Rhode Island players. Whether it’s missing legal basics or just a lack of clarity, we’d steer clear. Here’s why:
| ❌ Platform | 🚨 Why to Avoid |
| Crypto-only pop-up sites | No terms, no odds, no contact – zero transparency |
| Unknown new sites | No “no-purchase” method, no rules, or shady prize claims |
You have to pay taxes, even though you’re not gambling in the legal sense. The reason: winnings still count as income.
If you redeem cash, gift cards, or other prizes, Rhode Island and the IRS both want to know.
📍 Here’s how it breaks down:
Federal taxes:
If you redeem over $600 from one platform in a year, the site may send you a 1099 form. Even if you don’t get one, you’re still required to report all your winnings as “other income.”
Rhode Island taxes:
The state follows federal rules. So if you owe taxes to the IRS, you owe them to RI too. There’s no special “sweepstakes tax,” but it counts toward your state income total.
🔍 Tip for you:
Keep a log of redemptions. Mark dates, values, and payment methods. Saves you stress at tax time – and makes it easier to verify if you ever get a tax form from the site.
Every official sweeps site offers real redemptions – but not all prizes work the same way.
✅ Cash
Most Rhode Island sweepstakes sites let you redeem Sweeps Coins for cash via ACH, PayPal, or mailed checks. As long as the site gave you the SC legally (via free entry), the cashout is legal too.
✅ Gift cards
Amazon, Visa, and other cards are common redemption options. These are treated the same as cash for tax purposes.
✅ Physical prizes
Some RI sweepstakes casino sites run promos offering electronics or other gear. That’s allowed – unless the prize is a restricted item (like alcohol, tobacco, or firearms), which would violate RI law.
📌 Important:
Under RI Gen. Law § 42-61.1, if a site advertises a prize, it must deliver it with no hidden fees. If you win something, you shouldn’t have to pay a “handling” charge – that would break state rules.
The approximate retail value (ARV) of each prize must be disclosed by law. If it’s not? That’s a transparency red flag. Always check the site’s terms – especially on big giveaways.
✅ You must be 18 or older
✅ No real-money bets allowed
✅ One account per person
✅ Don’t fake your location
✅ Always play with free entry options
✅ Prize redemptions are taxable
✅ If it looks shady – don’t risk it
Sweepstakes casinos have the green light in Rhode Island – because they avoid the state’s definition of gambling by offering free entry. That’s what makes them work.
But that could change. In states like Michigan, New York, and Washington, regulators have already started cracking down on sweepstakes-style gaming – either through tighter definitions or outright bans.
While Rhode Island hasn’t taken that step yet, it’s part of a growing national conversation.
There’s no law in the works right now to shut these platforms down here – but if the rules shift, access could disappear quickly. Stick with well-known sites, and consider cashing out regularly to stay ahead of any sudden changes.
Compare Rhode Island with its closest neighbor states
Yes. Sweepstakes casinos are legal in Rhode Island because they avoid the legal definition of gambling. As long as there’s no mandatory payment to play – and players can enter via free daily bonuses or mail-in entries – they don’t violate state law.
No. You just need to be physically in Rhode Island when you play. These platforms use geolocation, so if you’re visiting from another state where sweepstakes casinos are restricted, you can still legally access them while in RI.
You must be at least 18 years old to legally participate in sweepstakes promotions, including sweepstakes-style casinos. Some platforms voluntarily require 21+, so always double-check the site’s terms.
Yes. If you earn or win Sweeps Coins (via free play or contests), you can redeem them for real cash, gift cards, or prizes. As long as your entry was free, the redemption is legal under Rhode Island law.
Yes. Any redeemed prize – whether cash, gift cards, or merchandise – counts as taxable income. You’re responsible for reporting these on your federal and Rhode Island tax returns. Keep records, especially if you redeem more than $600 in a year.
Not necessarily. Some platforms don’t clearly explain their free entry options or use misleading prize notifications. Stick to well-known sweepstakes casinos with transparent terms, clear “no purchase necessary” options, and solid reputations.
It’s possible in the future. Rhode Island sweepstakes casinos are legal now, but states like New York, Michigan, and Washington have already started cracking down. If RI ever redefines its gambling laws, access to these sites could change or be blocked.
