SweepCasinos > States > Texas

Top Texas sweepstakes casinos in 2026

Southwestern State doesn’t license online casinos, and they never have. But Texas sweepstakes casinos found a way around it. You can open a site, play games, and redeem real prizes without breaking any state laws.

Pavle Dinic Author Profile Picture
Pavle D.

Content Writer

Kevin headshot square
Velibor headshot square

Fact checked by

Last updated

19 January 2026

Hero Section Background

Best sweeps casinos in Texas this January 2026

1
An image of Sportzino logo in a dark blue background

By Nemanja M.

Sweepcasinos Choice

Up to 170,000 GC + 7 SC

Play Now btn-arrow
2
Mega Frenzy Casino logo on light purple background
Mega Frenzy Casino
This casino has been fully reviewed by our team and held to our highest standards.

By Jerard V.

Welcome bonus

GC 20,000 + SC 20

Play Now btn-arrow

Welcome bonus

100K Crown Coins + 2 SC

Play Now btn-arrow
4
Fortune Coins logo with light purple background

By Pavle D.

Welcome bonus

360,000 GC + 1,000 FC

Play Now btn-arrow
5
An image of The Money Factory logo on a black background.

By Jerard V.

Welcome bonus

15,000 GC + 3 SC

Play Now btn-arrow
6
Wow Vegas new logo on black background
WOW Vegas
This casino has been fully reviewed by our team and held to our highest standards.

By Pavle D.

Welcome bonus

150,000 WC + 5 SC

Play Now btn-arrow
7
RealPrize Casino logo on blue background

By Jerard V.

Welcome bonus

100,000 GC + 2 SC

Play Now btn-arrow

Big-name sweeps sites you can’t use in Texas

Legality of sweepstakes casinos in Texas

Digital illustration of a checklist standing in a grassy desert landscape with cactuses and tumbleweeds under a purple sky, depicting key criteria for Texas sweepstakes casinos.

Texas law breaks gambling down into three elements.

Should all of those three elements be present, the activity is illegal (written into Texas Penal Code § 47.01(4)):

  1. Prize — You can win something of value
  2. Chance — Outcome isn’t entirely in your control
  3. Consideration — You must pay or give something of value to enter

Sweepstakes operators have found a way around the “consideration” part by giving you and your fellow players a free way to enter. You might’ve heard folks mention a loophole in this situation, and that’s exactly what it is. These sites aren’t fully illegal, but they’re also not officially approved. And that is also why the term “grey area” comes up a lot.

👉 See why sweepstakes casinos are legal in most states.
👉 See our full guide to sweepstakes availability by state.

What Texas law says – and how it affects you

We now know that sweepstakes online casinos only operate legally in Texas because they avoid triggering the state’s definition of gambling.
That definition – and the rules around promotions – are written into two parts of state law.

Here’s exactly what those laws say, and what they mean for you if you’re logging in from Texas.

🧱 Texas Penal Code — Chapter 47 (Gambling Law)

This is the section that makes traditional online casinos illegal in Texas. Every sweepstakes casino operating here has to work around this chapter.

The line that Texas uses to define illegal gambling

§ 47.01 – Defines illegal gambling as any activity involving a prize, chance, and payment.

This is the section that makes traditional online casinos illegal in Texas. Every sweepstakes casino operating here has to work around this chapter.

lightbulb-icon

 → How it affects you: If a site ever removes its free-entry option (like mail-ins or daily SC rewards), it could cross into illegal territory. That puts the operator at risk, and your access may disappear without warning.

The law that could make playing a crime

§ 47.02 – Makes it a misdemeanor to knowingly place a bet in an illegal gambling setup.

lightbulb-icon

→ How it affects you: Right now, social casinos avoid this because they don’t require payment. But if Texas decides a specific site does count as gambling, your gameplay could technically become a criminal offense. It hasn’t happened yet – but the statute gives the state the power to act.

Why some sweepstakes sites suddenly block Texans

§ 47.06 – Prohibits the use of gambling devices, including digital simulations.

lightbulb-icon

→ How it affects you: If lawmakers or courts decide that the games on a sweepstakes site slot machines too closely –  and count as gambling devices – that platform could be blocked in Texas. This section is often cited when sites suddenly geo-restrict users here.

📦 Texas Business & Commerce Code — Chapter 622 (Sweepstakes Law)

This doesn’t deal with gambling, but with how promotional sweepstakes (including sweepstakes casinos) have to operate.

Rules every sweepstakes site must show you

§§ 622.051622.059 – Set rules for disclosing odds, prize values, eligibility, and how to enter.

lightbulb-icon

 → How it affects you: If a site doesn’t post clear rules about how SC can be earned or redeemed, it’s violating this code. That could lead to consumer complaints or regulatory pressure, which might cause the platform to block Texas players, even if you’ve already deposited.

False prize claims are illegal in Texas

§ 622.052 – Prohibits misleading sweepstakes ads or fake prize claims.

lightbulb-icon

 → How it affects you: If a site promises “guaranteed prizes” or hides conditions behind paywalls, it’s breaking this sweepstakes casino law. If enough complaints land, access from Texas could be restricted. The safest platforms show odds, list real cashout conditions, and honor advertised bonuses.

You can’t be forced into sweepstakes marketing

§ 622.057 – Protects Texans who opt out of sweepstakes mail or emails.

lightbulb-icon

→ How it affects you: You’re not required to accept marketing to keep your account. If a sweepstakes casino platform ties SC access or login bonuses to receiving emails – and doesn’t let you opt out – they’re violating this rule. You have the right to claim entries without becoming a target for advertising.

💸 What you owe on sweepstakes winnings in Texas

Texas doesn’t tax personal income, so if you redeem Sweeps Coins, the state doesn’t ask for a cut. But the IRS surely does.

Here’s how it works:

  • If you redeem Sweeps Coins for cash, gift cards, or anything with value, it counts as income.
  • What matters is when it becomes available to you (not when you cash out).
  • If you redeem $600 or more from any one casino, you might get a Form 1099-MISC or W-2G.
  • But even if you don’t get a form, you’re still legally required to report it.

👉 Our advice: If you live in Texas and play regularly, track your redemptions as you go – don’t wait for tax season to happen. A basic spreadsheet or even screenshots are enough.

📬 Latest legal development in Texas

You might’ve heard about SB 517, the bill that’s meant to really crack down on sweepstakes casinos in Texas. Here’s what actually happened.

SB 517 did pass the Texas Senate in May 2025, but it never made it through the House before the legislative session ended. And that’s why it didn’t become law.

As of January 2026, none of the changes tied to SB 517 are in effect.

🔍 What SB 517 was trying to do

Even though the bill didn’t pass, it’s still worth understanding why it got attention. SB 517 was supposed to tighten up Texas’ gambling laws, and it would have done the following, if it had passed.

  • Expand what counts as a “gambling device,” including digital sweepstakes slots.
  • Treat virtual coins + redeemable credits as a “thing of value,” not just cash.
  • Increase penalties for operators from misdemeanors to felonies.
  • Reduce the legal buffer between running illegal gambling and simply playing.

Where Texas law stands today (January 2026)

Since the passage of SB 517 failed, sweepstakes casinos in Texas continue to operate under the same rules.

They remain legal by eliminating the “payment to play” requirement and providing free entry options. This keeps them outside of Texas’s legal definition of gambling.

There are:

  • No new felony penalties
  • No automatic bans on sweepstakes coins
  • No new laws that make players criminals

Texas vs. neighboring states

Take a look at Texas compared to the states right next to it.

FAQs for Texas sweepstakes casino players

Are sweepstakes casinos legal in Texas?

Absolutely. You can continue to use sweepstakes casinos in Texas as long as they also have a no-purchase entry option, such as daily login bonuses or mail-in entry. This structure avoids the “consideration” element in Texas Penal Code § 47.01, which is why gambling is illegal.

Can I get in trouble simply for playing sweepstakes casinos in Texas?

Not at this time. The law targets unlicensed operators, not individual players, as long as a no-purchase entry method is available. But once SB 517 goes into effect, the law will no longer protect players. If the platform qualifies as illegal gambling under Texas law, even casual players could face potential criminal liability under § 47.02.

Do I need to use the mail-in option if I want to stay legal?

No. Texas law simply requires there to be a no-purchase entry option. You do not even have to use the mail-in entries if the platform allows for daily bonuses, contests, or gaming loyalty reward points. So long as you can receive free Sweeps Coins, you are playing within the sweepstakes model.

Do I need to report any sweepstakes winnings on my taxes if I’m in Texas?

Yes. Texas does not collect state income tax, but the IRS is still going to classify sweepstakes prizes as income and tax them. If you redeem Sweeps Coins for cash, gift cards, or merchandise, you must report it as income on your federal return. Even a small win counts.

Why do some sweepstakes casinos block Texas players?

Some operators may not want to take the risk of running sweepstakes that are questionable because they are not certain about the law. § 47.06 of the Penal Code states that gambling devices are prohibited, and that includes digital slot machines. If a sweepstakes casino could be construed as a gambling activity, they may keep Texans from gaining access to avoid putting themselves in a legal hot seat.

Pavle Dinic Author Profile Picture

About the Author

Pavle D.

Content Writer

Up at the break of dawn, with the roosters and the city’s diligent bakers, who see him as their best customer – Pavle, is an avid console gamer, pastry connoisseur, all-around family man, and a stickler for details. With a Master’s Degree in English Language and Literature, nothing gets past this guy when it comes to quality control. Pavle is one of our contributors for all content writing tasks. When he’s not working, Pavle can be found playing the keyboard in an instrumental post-rock band.

Sources

  • SCCG Management. (2023, April 4). Could Texas SB517 impact Texas sweepstakes casino regulation? Link
  • Texas State Law Library. (n.d.). General information – Raffles, contests, & sweepstakes. Link
header-decoration

A Guide to the Best Sweepstakes Games

Read Guide btn-arrow