What are sweepstakes casinos? How do they work and what type of games do they offer?
Where can you access these venues? Are they legal in all states?
This article will help demystify sweepstakes casinos. It will answer the most common questions about these unique venues.
What are sweepstakes casinos?
Sweepstakes casinos offer traditional casino games like slots, poker and blackjack. However, unlike traditional casinos, they do not directly rely on or require real money.
Instead, they have their own digital currencies.
For example, some sweepstakes casinos use gold coins. Players can earn these digital coins and exchange them for prizes like gift cards or actual cash.
Why do sweepstakes casinos create gaming currencies instead of using real money? Sweepstakes casinos are popular in states where real money games are prohibited.
They can offer a legal alternative to real-money casinos because they fall under sweepstakes laws rather than gambling laws.
In other words, they can be exempt from some states’ gaming prohibitions or restrictions.
How do sweepstakes casinos actually work?
Most sweepstakes casinos have two gaming currencies.
They have a free currency that players can use to play games for free. They have another currency that can be used to redeem prizes.
That second currency is the ‘sweepstakes’ currency or the one that gives players access to real-money prizes.
Players can try getting sweepstakes coins by participating in ‘sweepstakes entries’ or ‘draws’. They can also get coins as a welcome bonus or a daily gaming reward.
The ways of obtaining a sweepstakes coin can vary from one gaming provider to another.
Sweepstakes casinos are growing in popularity across many states with many new US sweepstakes casinos entering the market each year.
Laws around sweepstakes casinos
Some states have very particular stances towards sweepstakes casino gaming.
- States that ban sweepstakes casinos
The states of Washington, Michigan, Idaho and Nevada allow some casino activities but ban sweepstakes casinos.
Utah does not allow any casino games and real-money games, including sweepstakes casinos. However, Hawaii now seems to be reconsidering its stance on casino gaming.
- State where sweepstakes casinos might soon be banned
New Jersey currently allows sweepstakes casinos to operate. However, in February 2025, it started working on new proposals to ban sweepstakes casinos.
- States where sweepstakes casinos do not really operate out of caution
There are some states that do not outwardly ban or allow sweepstakes casinos. These states are Alabama, West Virginia, Maryland, Montana, Nevada and Kentucky.
They tend to have strict rules when it comes to casino gaming. For example, Kentucky only allows some horse racing bets but no other betting or casino games.
Many gaming providers tend to avoid operating in these states because the laws around sweepstakes casinos are still unclear.
- State where sweepstakes casinos might become legal
Hawaii might soon legalize state-owned sweepstakes casinos. In February 2025, it started working on new proposals to legalize these venues.
Apart from sweepstakes casinos that might be legalized, other casino gaming activities will most likely remain prohibited in the state of Hawaii.
- States that allow sweepstakes casino gaming but have restrictions
New York and Florida are two states that allow sweepstakes casinos to operate but do have some restrictions in place.
Both states do not allow for winnings over $5000 USD. If a player earns over $5000, the prize is voided by the state, meaning the player gets $0.
These restrictions have led some sweepstakes casinos to leave New York and Florida.
- States that allow sweepstakes casinos
There are many US states that allow sweepstakes casinos. A few of these states include California, Texas and Georgia.
That being said, players should always check whether their state allows sweepstakes gaming. Laws can change very quickly.
Players should also make sure that they are playing with a legal and licensed operator. Sweepstakes gaming might be legal in one’s state but that does not mean that all gaming companies are operating legally.
Requirements to play at sweepstakes casinos
To play at sweepstakes casinos, players need to be at least 18 years old. They also need to reside in a state that allows sweepstakes casinos.
Casinos will usually request a player’s postcode and/or certain forms of ID to confirm their residency status.
In order to play, gamers will usually need to be physically present in a state that allows casino gaming. For example, if a player is from New York but plays in Utah, they will not be able to play.
If a player is currently out-of-state but wants to access their state’s legal casinos, they can potentially use a VPN to do so. However, this might not always work.
It is usually best to be physically present in a state that allows sweepstakes casinos to avoid any issues.
Final thoughts
This article explained what sweepstakes casinos are, how they work, and in which states they can operate. Players can use the information provided to find the perfect gaming provider.
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