Sweepstakes Casinos Explained

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.

How the two currencies work

  1. You buy packages of a play-only currency, usually called Gold Coins. They can't be redeemed for prizes.
  2. The site adds a second currency, usually called Sweeps Coins, as a “free” bonus with those packages. You can also get Sweeps Coins as a daily bonus, in giveaways, or by sending a request by mail, with no purchase.
  3. You play casino-style games with either currency. Sweeps Coins you win can be redeemed for prizes, such as cash or gift cards, once the site's conditions are met: a minimum balance, identity checks, and playing the coins through a set number of times.

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.

How sweepstakes casinos work: Gold Coins are bought to play, Sweeps Coins come free and can be redeemed for prizes
How the two currencies work. Source: one large operator's published sweepstakes rules, November 2025 version.

Why they say it isn't gambling

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.

Where sweepstakes casinos are banned

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.

StateLawIn force
New JerseyA5447 (P.L. 2025, chapter 128)August 15, 2025, on signing
MontanaSB 555 (Chapter 626, Laws of 2025)October 1, 2025
ConnecticutSB 1235 (Public Act 25-112)October 1, 2025
New YorkS5935A (Chapter 605 of 2025)December 5, 2025, on signing
CaliforniaAB 831 (Chapter 623, Statutes of 2025)January 1, 2026
MaineLD 2007 (Public Law 2025, chapter 645)July 29, 2026
LouisianaHB 883 (Act 182 of 2026)August 1, 2026
OklahomaSB 1589, enacted over the governor's vetoNovember 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.

What a ban means for your balance

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.

The catch for players

  • No regulator. No state licenses them, so no one checks the games' odds or the redemption rules.
  • Redemptions are on the site's terms. You're paid only if you meet its conditions and pass its identity checks.
  • A ban can close your account. When a state bans them, a site can stop serving you at short notice.
  • Some game makers stay away. Play'n GO said in May 2025 that it won't supply sweepstakes casinos.

If you want real-money casino games, play only where your state licenses them.

Sweepstakes casinos and real-money online casinos

Here is how they compare with real-money online casinos.

Sweepstakes casinoReal-money online casino
Who licenses itNo oneThe state regulator
What you pay forCoin packagesNothing: you deposit money and bet it
How you're paidYou redeem Sweeps Coins for prizesYou 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.

In the news

Questions about sweepstakes casinos

Are sweepstakes casinos legal?

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.

Can you win real money at a sweepstakes casino?

You can redeem Sweeps Coins you win for prizes, including cash, under the site's rules. Gold Coins have no cash value.

Do I have to pay to play?

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).