Are Sweepstakes Casinos Legal in the U.S.? State-by-State Guide (July 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 (July 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

Sweepstakes casinos are currently legal and accessible in the following states:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming.

Note: Platform availability may vary. Always check the specific sweepstakes casino's terms and conditions.

🔴 States Where Sweepstakes Casinos Are Restricted or Banned

The following states have passed legislation restricting or banning sweepstakes casino platforms:

Connecticut – SB1235 bans unlicensed online casino-style platforms, including sweepstakes casinos.
Idaho – Sweepstakes casinos are not permitted under current laws.
Louisiana – SB181 prohibits sweepstakes-style gaming with strong enforcement measures.
Michigan – Platforms may restrict access due to regulatory ambiguity.
Montana – Explicitly banned sweepstakes casino operations under a 2025 law.
Nevada – SB256 increases penalties for unauthorized gambling, including sweeps models.
Washington – Longstanding ban on sweepstakes casinos.

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: July 2025