
A sweepstakes casino is a casino-style site, mostly for US players, that runs on two currencies. One you buy and play for fun. The other comes free and can be redeemed for prizes, including cash. Calling it a sweepstakes is how these sites argue they aren't gambling, and a growing number of states disagree: at least eight have banned them by law.
At one of the largest sites, each Sweeps Coin won in play is worth a $1 prize. Every coin must be played at least once before it can be redeemed, and the site can ask for up to 20 times. You can redeem only once you hold 100 Sweeps Coins.
Most US state laws treat a game as gambling when it has three things: a prize, chance and consideration, which means paying to play. Sweepstakes casinos keep the prize and the chance. They argue the third is missing, because you can get Sweeps Coins without paying.
That argument is what the new state laws take away.
This is a plain summary of how the laws work, not legal advice.
These eight states have laws in force that ban sweepstakes casinos. We list a state only after reading its law on the state legislature's own site.
| State | Law | In force |
|---|---|---|
| New Jersey | A5447 (P.L. 2025, chapter 128) | August 15, 2025, on signing |
| Montana | SB 555 (Chapter 626, Laws of 2025) | October 1, 2025 |
| Connecticut | SB 1235 (Public Act 25-112) | October 1, 2025 |
| New York | S5935A (Chapter 605 of 2025) | December 5, 2025, on signing |
| California | AB 831 (Chapter 623, Statutes of 2025) | January 1, 2026 |
| Maine | LD 2007 (Public Law 2025, chapter 645) | July 29, 2026 |
| Louisiana | HB 883 (Act 182 of 2026) | August 1, 2026 |
| Oklahoma | SB 1589, enacted over the governor's veto | November 1, 2026 |
Montana's law doesn't use the word sweepstakes: it bans online casinos that take bets or pay out in “any form of currency”. Bills in other states are added here once we can check them on the state's own site. Last checked November 3, 2026.
Elsewhere, sweepstakes casinos operate without being licensed by the state. That doesn't make them regulated: no state checks their games or their payouts.
Oklahoma's ban, in force since November 1, 2026, says nothing about coins players already hold. What happens to a balance is up to each site. Ahead of the ban, operators either withdrew from Oklahoma or stopped offering Sweeps Coins there, Gambling Insider reported on October 29 (see our Oklahoma article).
If your state passes a ban, read the site's notices and redeem what you can before the date it takes effect.
If you want real-money casino games, play only where your state licenses them.
Here is how they compare with real-money online casinos.
| Sweepstakes casino | Real-money online casino | |
|---|---|---|
| Who licenses it | No one | The state regulator |
| What you pay for | Coin packages | Nothing: you deposit money and bet it |
| How you're paid | You redeem Sweeps Coins for prizes | You withdraw your winnings |
A handful of states license real-money online casinos. If you live in one, check your state regulator's list of licensed sites before you play.
It depends on the state. They're banned by law in the eight states in the table above. Elsewhere they operate without being licensed by the state.
You can redeem Sweeps Coins you win for prizes, including cash, under the site's rules. Gold Coins have no cash value.
No. You can get Sweeps Coins without buying anything, for example as a daily bonus or by mail. Gold Coin packages are optional, and they come with Sweeps Coins as a bonus.
How we checked. By the casin.com team. Last checked November 3, 2026. The state table comes from each state's legislature: we list a law only after reading it there. The mechanics come from one large operator's published sweepstakes rules (November 2025 version).