Sweepstakes casinos are available in many states where traditional forms of real money online gambling are prohibited, and it often causes confusion among players. The team of Sweepwiz has thoroughly studied federal laws of the US as well as all the state laws to present you with this guide on legality of online sweepstakes casinos in the United States.

What Are Sweepstakes Casinos?
Sweepstakes casinos are online platforms where you can play casino-style games for free. Even though the experience is fairly similar to conventional online gambling sites, there are few key differences that you should be aware of.
First of all, instead of regular USD, these platforms use their own currencies, and they usually have two of them: Gold Coins and Sweepstakes Coins or their equivalents. Gold Coins are used for playing casino games for fun, while Sweeps Coins can be used to win real money prizes. The main twist is that you can only obtain SC for free, meaning you do not have the opportunity to directly gamble with real money.
Secondly, unlike real money gambling sites, sweepstakes casinos have to follow “no purchase necessary” guidelines. This implies that the operators are obliged to provide you with enough free coins to have a comfortable experience on the platform, so they offer numerous no-deposit bonuses. At the same time, there is still an option to purchase Gold Coin packages and get additional free SC Coins for free as well.

How Sweepstakes Casinos Operate Legally in the USA
In order for sweepstakes casinos to operate legally in the US, they need to follow both nation-wide federal laws and local state regulations. The main criteria for these websites to continue their legal operation are as follows:
- They should comply with “no purchase necessary requirements”
- There should be virtual currencies in place instead of USD
- The operators should provide you with free virtual currency upon request
- If the website offers real cash prizes, they should be winnable without having to make a deposit

State-by-State Legality of Sweepstakes Casinos
Local regulations for sweepstakes casinos are different in every region of the United States, which is exactly why most of the websites in this niche have some restricted states listed in their Terms and Conditions. In this section, we will break down the states into three main categories:
- States where sweepstakes casinos are legal
- States where sweepstakes casinos are illegal
- States where sweepstakes casinos are in a gray area
States Where Sweepstakes Casinos Are Legal
The players should be relieved to discover that sweepstakes casinos are legal in most states of the US. Thankfully, the federal laws allow for the operation of these sites, so it requires the state to pass its own bills in order to change their legality, which is a thing very few states have actually done so far. Below, you will find a complete list of states where online sweepstakes casinos are legal.
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Florida
- Hawaii
- Illinois
- Indiana
- Iowa
- Kansas
- Maine
- Maryland
- Massachusetts
- Minnesota
- Mississippi
- Missouri
- Nebraska
- New Hampshire
- New Mexico
- North Carolina
- North Dakota
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Virginia
- West Virginia
- Wisconsin
States Where Sweepstakes Casinos Are Non-Legal
Michigan and Washington are the only two states in the US that have explicit sweepstakes laws that forbid the operation of these platforms. They are mentioned in the Terms and Conditions of all sweepstakes casino sites as restricted states, as the operators are not allowed to accept players from these parts of the country.
States in the Legal Gray Area for Sweepstakes Casinos
The situation with other states is a bit trickier. Some of them allow for legal sweepstakes casinos but prohibit them from offering cash prizes, while others have other and more subtle regulations. Here is a list of states the players from which should be cautious when joining sweepstakes casino sites:
- Alabama
- Delaware
- Georgia
- Idaho
- Kentucky
- Montana
- Louisiana
- Nevada
- New Jersey
- Ohio
- Vermont
- New York
- Wyoming
- Utah
Thankfully, it is enough for you to read the site’s Terms and Conditions and find its Restricted States to make sure your state is not on the list. In case the sweepstakes casino allows you to create an account, it is almost certain that it complies with the regulations of your state. Moreover, in case it is found out it does not, it will be the operator who has to face the repercussions rather than the players.
Legal Sweepstakes Casinos vs. Social Casinos: What’s the Difference?
We have already covered the difference between sweepstakes casinos and conventional real money gambling platforms, but in order to leave no stones unturned, we also have to compare them to social casinos.
Social casinos, much like sweepstakes casinos, are online platforms where you can play casino-style games for free. They also come with virtual currencies such as Gold Coins and often offer the same casino games as sweepstakes casinos.
The difference is that social casino sites have only one virtual currency instead of several, meaning they do not offer Sweeps Coins and provide no option to win cash prizes. These websites and apps exist exclusively for having fun and socializing with fellow players.
This allows social casino sites to operate legally in all states of the US, as all the regulations are only in place for platforms that offer real prizes. Some good examples of social casinos are:
- Betrivers.net
- Gambino Slots
- Rush Games
- BananaBets
- Hard Rock

Frequently Asked Questions (FAQs) About Sweepstakes Casino Legality
We understand that the legality of sweepstakes casinos in the US is a tricky matter, so let us answer some frequently asked questions before we conclude this guide.
Are Sweepstakes Casinos Legal in the USA?
Sweepstakes casinos are legal in the US according to federal laws, although local regulations in some states might prohibit or limit their operation.
Which States Allow Sweepstakes Casinos?
The following states allow sweepstakes casinos: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, North Carolina, North Dakota, Oklahoma.
Can I Win Real Money on Sweepstakes Casinos?
Yes, most sweepstakes casinos will offer an option to redeem cash prizes. Note that this feature is not allowed in some states, so we suggest you to verify it for your area before joining a website that supports real prizes.
How Can I Stay Updated on Sweepstakes Casino Laws?
There are numerous resources you can follow in order to stay updated on sweepstakes casino laws. On the federal level, you can check the official websites of different government bodies such as the United States Department of Justice (www.justice.gov), the National Indian Gaming Commission (www.nigc.gov), and Federal Trade Commission (www.ftc.gov). As for the state laws, you should do the same for the official regulatory body in your region.
Conclusion: Making Informed Choices About Sweepstakes Casinos
Summing up, you can play at sweepstakes casinos in almost every state of the US, although there might be some restrictions and limitations to your experience. Considering that it is mostly determined by local state regulations, we suggest all players carefully study the legal requirements in their particular states and attentively read the Terms and Conditions of every sweepstakes casino site they decide to join.