Vermont sweepstakes casinos are still standing proudly – but only because they thread a legal needle with surgical precision. You can play games, redeem prizes, and technically stay within state law – if the site follows the rules. And if you do too. The state doesn’t regulate these platforms, but it doesn’t ban them either. Here’s what’s keeping the system legal – and what could yank it out from under you.
Jerard V.
Content Manager
Last updated
18 June 2025
✅ Sweepstakes casinos are legal in Vermont – but only if they offer a real no-purchase entry method
→ Backed by 13 V.S.A. § 2143b
❌ Pay-to-play setups = illegal gambling
→ If there’s no free path, it falls under 13 V.S.A. § 2133 – the state’s gambling ban
👤 You must be 21+ to play
→ Not state law, but every major platform now enforces it
🧾 Winnings are taxable in Vermont
→ The moment you redeem for something valuable, it counts as income (state + federal)
🚫 No regulator = no protection
→ If a site refuses to pay or disappears, you’re on your own – no Vermont agency oversees these
🧠 Mail-in methods matter
→ A working mail-in option keeps the platform legal; hiding it puts the whole operation at risk
📉 You lose all rights on illegal sites
→ No prize guarantees, no legal support, possible misdemeanor under 13 V.S.A. § 2151
🔍 Your safest move? Stick to our monthly picks
→ We filter out any site that bends the rules, so you don’t have to.
Vermont doesn’t ban sweepstakes casinos – as long as they skip one thing: required payment.
Here’s exactly what the law says:
🧾 13 V.S.A. § 2143b
→ Sweepstakes are legal only if you’re not required to pay (or risk anything valuable) to enter.
🟢 So, a platform is allowed in Vermont if:
🔴 A platform crosses the line if:
If any of those red flags show up, the site is no longer protected under Vermont’s sweepstakes exception. That means it’s running an unlicensed gambling operation – and your access (or redemptions) could disappear without warning.
You’re allowed to use sweepstakes casinos in Vermont – but only if you meet a few key conditions. These don’t come from a state regulator (Vermont has no gaming commission), but from the platform’s terms and the legal framework in 13 V.S.A. § 2143b – the section that makes sweepstakes legal when no payment is required.
✅ You must be 21 or older
Vermont doesn’t set a legal age for sweepstakes entries. But in 2025, most major sweepstakes platforms raised their minimum age to 21 – across all states – to preempt legal friction and align with broader gaming standards. If you’re under 21, your account likely won’t get verified, and you won’t be allowed to redeem prizes.
✅ You must be physically located in Vermont
You don’t need to be a resident, but you do need to be within state lines when accessing the platform. Sites verify this using IP detection and sometimes geolocation. If you’re out of state – especially in banned jurisdictions – you’ll be locked out automatically.
✅ You must follow the platform’s own terms
Even though 13 V.S.A. § 2143b makes the sweepstakes model legal under Vermont law, that legal cover only applies if the platform itself is compliant – and if you are too. Using a VPN, submitting false info, or making duplicate accounts can void your eligibility to redeem prizes and may result in a permanent ban.
13 V.S.A. § 2143b protects you only when the platform avoids mandatory payment and runs a true sweepstakes. If the site breaks that structure – or if you break their terms – the protection disappears. And there’s no state-level agency to back you up.
Vermont doesn’t hand out licenses for sweepstakes casinos. There’s no list of approved sites, no regulator to call, and no official stamp. What protects you is 13 V.S.A. § 2143b – and that only works if the site is structured legally, and if you follow the rules too.
Here’s how you check if a site actually holds up:
The sweeps or online social casino needs to let you get Sweeps Coins without buying anything.
Example: You see an option to mail a handwritten request for 5 SC. It’s on the site, with instructions and no hidden catch – that’s compliant.
If the only way to get coins is by buying a $20 pack – it’s not.
You must be able to win prizes using coins earned for free – not just paid ones.
Example: You claim 2 SC from your daily bonus, hit a lucky spin, and redeem that win for a gift card. That’s legal. But if the site tells you redemptions only unlock after your first purchase – that’s not allowed under 13 V.S.A. § 2143b.
GC = play money. SC = redeemable. They must be labeled, explained, and never merged.
Example: The homepage shows “10,000 GC for fun” and “5 SC for prize entries.” There’s a breakdown of what each does. That’s safe.
If you only see “tokens” with no explanation – and prizes tied to them – that’s sketchy.
The site should explain eligibility, free entry, redemption rules, and prize odds – all in plain sight.
Example: The footer links to “Official Rules,” which include a mail-in method, sweepstakes casino bonus breakdowns, and age restrictions. Great.
If the only info is “Play and Win!” with no terms or entry conditions – don’t trust it.
There’s no slot machine ban in Vermont law, but if the platform uses gambling lingo or casino-style visuals and skips the sweepstakes structure, it’s legally exposed.
Example: A site says “Try your luck!” and shows classic reels – but also includes a working mail-in entry and full prize terms. It’s bold, but likely fine.
If another site shows jackpot meters, uses dollar symbols, and requires payment to spin – that’s gambling disguised as sweepstakes.
If you can’t win or cash out without paying, the site doesn’t qualify under 13 V.S.A. § 2143b. That means your redemptions aren’t protected – and your access could vanish overnight.
If a sweepstakes site doesn’t follow Vermont law – and you use it anyway – you’re very much not in the clear. Even if the site looks legit. Even if it used to offer free entry but quietly pulled it.
Here’s what can happen if you end up on the wrong side of 13 V.S.A. § 2143b or the general gambling ban under 13 V.S.A. § 2133.
Vermont doesn’t recognize payouts from illegal gambling setups. If a site breaks the rules and then refuses to pay you – your state won’t step in.
Example: You win $200 in Sweeps Coins, try to redeem, and suddenly the site says your account is “under review.” You never get paid. Since the platform wasn’t compliant with § 2143b, and there’s no regulator overseeing it, there’s no agency to help.
If the state flags a platform as an unlicensed gambling operation under § 2133, that platform might geo-block Vermont. And if they shut down, your balance disappears with them.
Example: You’ve built up 8 SC over weeks, no purchase made. Suddenly the site stops working in Vermont – no warning, no refund. If they weren’t operating within the law, you’ve got no legal backup.
Yes, you. While Vermont usually targets operators, 13 V.S.A. § 2151 makes it illegal to “bet or hazard money” in an unlicensed game. That includes online games that look and act like real-money gambling.
Example: You deposit on an offshore casino disguised as a “sweepstakes” site – no free entry, no daily SC, no mail-in method. That’s gambling under Vermont law. Technically, you’ve committed a crime (though prosecution is rare, it’s not off the table).
Even if the site isn’t shut down, it’s unregulated. There are no refund rules. No guaranteed redemptions. And if the site sells your data or messes with your money? Vermont law won’t help.
Example: You try to withdraw winnings. Suddenly you’re told you need to verify by uploading your passport, utility bill, and phone bill. Then the site ghosts you. That’s a classic offshore move – and perfectly legal for them if they’re not governed by U.S. rules.
If the site doesn’t offer a real no-purchase path, doesn’t separate SC from GC, or makes you pay to redeem – it’s not legal under 13 V.S.A. § 2143b. And if it operates like a gambling house? That’s banned under § 2133. You might think you’re just spinning for fun – but legally, you’re in thin ice territory.
Vermont doesn’t tax you for playing – but it absolutely expects you to report what you win. Since sweepstakes casinos aren’t licensed or regulated by the state, it falls to you to handle the paperwork. And the moment you redeem Sweeps Coins for something with real value, that’s reportable income.
Here’s what actually applies when you win:
That includes cash, gift cards, or anything else you redeem from a sweepstakes platform. The value gets added to your income, and you’re expected to report it when you file your state return.
Example: You redeem 25 SC for a $100 prepaid Visa. Vermont treats that $100 just like freelance income. You owe standard state income tax on it.
If you earn $600 or more from a single sweepstakes site in one calendar year, they may send you a Form 1099-MISC or W-2G. But even if they don’t, the IRS still expects you to report it as “other income.”
Example: You play on three sweeps sites. One sends you a 1099, one doesn’t, and one paid you in gift cards. You still have to tally it all up – the $600 threshold applies per site, but your total winnings go on your federal return.
Sweepstakes platforms won’t hold back taxes when they pay you. It’s all on you. That means you’ll owe taxes at filing time – not in the moment you redeem.
Example: You cash out $300 in January, $400 in April, and forget to set anything aside. Come tax season, you’ll owe on that $700, both to Vermont and the IRS – and the site won’t have paid any of it for you.
Keep a simple spreadsheet, folder of screenshots, or notes of what you redeemed and when. It’ll save you time and frustration later – especially if the sweeps platform doesn’t send forms, or if totals don’t match.
Example: You redeemed prizes across 6 months, but only received one tax form in January. Your records help you double-check that amount – and catch any missing wins.
Even if the site feels casual – daily bonuses, no deposits, no pressure – your redemptions still count as income. Vermont won’t knock on your door, but if the IRS flags unreported prizes, penalties can follow. Treat sweepstakes wins like freelance pay: track them, report them, and stay in the clear.
You’re still in the clear – for now
Sweepstakes casinos remain legal in Vermont as long as they follow the rules laid out in 13 V.S.A. § 2143b. That means a no-purchase method must be available, coins must be clearly separated, and redemptions can’t be tied to spending. If those conditions hold, you’re operating within state law.
But nothing about this space is locked in
Vermont hasn’t introduced any new bills targeting sweepstakes models. But that doesn’t mean it won’t. If a site pushes too far – removing its free entry or mimicking real gambling too closely – lawmakers could tighten things up quickly.
No oversight means no backup
Vermont doesn’t license or regulate these platforms. There’s no board to file complaints with. If something goes wrong, your only defense is whether the platform followed the law – and whether you did too.
Older laws still apply
The sweepstakes exception only works if the platform avoids mandatory payment. If it doesn’t, Vermont’s general gambling ban under 13 V.S.A. § 2133 kicks in. At that point, the site – and potentially even your play – falls outside the legal line.
What to keep in mind going forward
The sweepstakes setup works in Vermont because it follows the letter of the law. But if even one part of that structure breaks, the entire model becomes unstable. Stick to platforms that get it right – and stay alert.
Compare Vermont with its closest neighbor states
Yes, as long as they follow 13 V.S.A. § 2143b. That law allows sweepstakes to operate if they don’t require payment to enter. If the site offers a real, no-cost way to play and redeem prizes – like daily SC drops or a working mail-in method – it’s legal in Vermont.
No. You just need the option. Vermont law doesn’t require you to use the mail-in route – only that the platform offers some no-purchase method. If free Sweeps Coins are available through daily logins or contests, that counts.
Yes, as long as they’re optional. If you buy coins but the site also gives away Sweeps Coins for free – and the free method is real and usable – then it’s still legal under 13 V.S.A. § 2143b.
There’s no state-mandated age in Vermont’s sweepstakes law. But in Jul,2025, most platforms raised their minimum age to 21. That’s now the standard across major sites. If you’re under 21, your account likely won’t pass verification.
Yes. If the site doesn’t follow the pure sweepstakes model, it may fall under Vermont’s general gambling ban in 13 V.S.A. § 2133, and player betting is covered under § 2151. Enforcement is rare, but if you’re using a platform that requires payment and mimics real gambling, you’re technically violating the law.
Vermont treats redeemed prizes as personal income. Whether you cash out in dollars, gift cards, or other rewards, you’re responsible for reporting it on your state and federal tax returns. Even if the site doesn’t send a tax form, the IRS still expects you to report it.
If a platform breaks the law – like removing its no-purchase path – it could get geo-blocked or shut down. When that happens, your access, Sweeps Coins, and pending redemptions could disappear. Vermont offers no consumer protection or regulatory backup in these cases.
