Are Sweepstakes Casinos Legal in the U.S.? State-by-State Guide (September 2025)
Sweepstakes casinos have emerged as a popular alternative to traditional online gambling, offering players the chance to enjoy casino-style games and win real prizes without wagering real money. But are they legal in your state? This guide provides an up-to-date overview of sweepstakes casino legality across the United States.
What Are Sweepstakes Casinos?
Sweepstakes casinos operate using a dual-currency system:
- Gold Coins (GC): Used for entertainment purposes; cannot be redeemed for cash.
- Sweeps Coins (SC): Acquired through promotions or purchases with GC; can be used to play games and redeemed for real prizes.
This model allows sweepstakes casinos to comply with U.S. laws by avoiding the traditional gambling framework.
State-by-State Legality of Sweepstakes Casinos (September 2025)
Sweepstakes casinos remain legal in most U.S. states. However, recent legislative activity has led to new prohibitions in a few states. Below is the most accurate and up-to-date breakdown.
🟢 States Where Sweepstakes Casinos Are Legal (40 states)
Sweepstakes casinos remain legal and accessible in the following states:
Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming.
Important Note: Platform availability varies significantly. Many operators voluntarily restrict access in additional states due to regulatory uncertainty. Always check the specific sweepstakes casino's terms and conditions.
🔴 States Where Sweepstakes Casinos Are Banned or Restricted
Explicitly Banned States (8 states):
- Washington – Long-standing ban on sweepstakes casinos
- Idaho – Players prohibited from receiving cash prizes
- Michigan – Crackdown following 2023 investigation; most operators exited
- Montana – SB555 banned operations effective October 2025
- Connecticut – SB1235 banned operations effective October 1, 2025
- Louisiana – Attorney General declared operations illegal in July 2025
- Nevada – SB256 significantly increased penalties for illegal operators
- New Jersey – A5447 banned operations effective August 15, 2025
States with Active Enforcement or Pending Bans
- New York – Attorney General ordered 26 platforms to cease operations in June 2025; SB5935 passed Senate
- California – AB831 advancing through legislature with potential 2025 passage
🟡 Prize-Limited States
- Florida – Maximum prize of $5,000
- New York – Maximum prize of $5,000
Major 2025 Developments
Regulatory Crackdowns
The first half of 2025 saw unprecedented enforcement actions by state attorneys general and gaming control boards:
- New York: 26 platforms ordered to cease operations in June
- Michigan: Nine cease-and-desist letters issued in February
- Maryland: Gaming regulator sent cease-and-desist letters in March
- Louisiana: Gaming Control Board issued 40+ cease-and-desist letters
Legislative Actions
Multiple states passed comprehensive bans in 2025:
- Montana: First state to ban in 2025 (effective October)
- Connecticut: Signed ban in June (effective October 1)
- New Jersey: Passed ban in June (effective August 15)
- Louisiana: Legislature passed ban, but governor vetoed; AG declared illegal anyway
- Nevada: Enhanced penalties with profit disgorgement provisions
Industry Response
Major operators like VGW (Chumba Casino, LuckyLand Slots) and other platforms have proactively exited multiple states ahead of legislation taking effect.
How Are Sweepstakes Casinos Legal?
Sweepstakes casinos avoid traditional gambling classifications by:
- No Purchase Necessary: Players can acquire SC through free methods, such as mail-in offers or daily bonuses.
- Alternative Entry Methods: Provide ways to participate without spending money, aligning with sweepstakes laws.
- Virtual Currencies: Use of GC and SC separates them from real-money gambling platforms.
This structure allows them to operate legally in many jurisdictions where online gambling is restricted.
Monthly Updates on Legal Changes
State laws regarding sweepstakes casinos can evolve. We commit to updating this guide monthly to reflect any legal changes, ensuring you have the most current information.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult with a legal professional regarding your state's gambling laws.
Last Updated: September 2025