Do Sweepstakes Casinos Charge Fees for Purchases and Redemptions?

These fees can appear in a few different places, including when buying coin packages, redeeming Sweeps Coins, or using certain third-party banking methods. In this guide, we’ll break down which fees exist, why they’re becoming more common, and how you can avoid paying them.

Coin Purchases and Associated Fees

The headline is simple: most sweepstakes casinos don’t add a fee when you buy Gold Coin packages. In most cases, the price you see in the coin store is the amount you pay.

However, that is not always the case. Some operators have introduced processing fees on purchases, while others may add sales tax depending on your state.

Processing Fees on GC Purchases

One of the clearest examples of this we have seen is Legendz Casino which added a 2.9% processing fee to coin bundles starting in 2025.

The casino updated its terms to state:

“We may charge a fee for the processing of a purchase, in our sole discretion. Any applicable fee shall be displayed to the customer during the checkout process.”

For example, a $100 coin purchase could cost an extra $2.90 if the fee applies.

WOW Vegas has also previously added a similar 2.9% purchase fee, although it is capped at a maximum of $10. CoinsBack Casino, which shares the same operator as WOW Vegas (MW Services Ltd), launched with a fee on coin bundle purchases, but it was soon removed after player feedback criticized it.

Sales Tax on Coin Purchases

Not every extra charge is a casino fee. In some cases, the additional amount is a sales tax.

For example, Chumba Casino and other VGW brands like LuckyLand may collect sales tax on Gold Coin purchases depending on the player’s location.

When we asked support about this, Chumba confirmed:

“Gold Coin purchases are subject to tax, depending on your location. Chumba Casino in certain states is registered to collect tax… To ensure accuracy, we automatically calculate the exact rate at checkout based on your physical location. You’ll see any applicable tax clearly listed before you complete your purchase.”

The important thing is that this does not apply to every player. Most states will not add this extra charge, but players in locations where VGW collects sales tax may see an increase.

Depending on your state and local tax rate, this can range from around 4% of the purchase value to closer to 10%.

Coin Value Differences and ‘Hidden’ Costs

Not every extra cost comes in the form of a visible fee at checkout though. Another thing players should be aware of is that some casinos use coin packages where the value of the free Sweeps Coins (or equivalent token) does not directly match the amount you spend.

Almost all sweepstakes casinos follow a simple structure where a $10 coin package includes around 10 free Sweeps Coins, a $50 package includes around 50 free Sweeps Coins, and so on. However, some operators use different ratios.

Card Crush is one example where players can purchase Mystery Coins but the amount received may not match the dollar amount spent. For example, when we last reviewed this site, we found Mystery Boxes containing 5 Mystery Coins (plus collectible Cards) for $9.99. Of course, this works out at $2 per Mystery Coin, rather than $1.

This is not the same as paying a processing fee or sales tax, but it can have a similar – or worse – effect.

Why Fees Are Becoming More Common at Sweepstakes Casinos

As far as SweepsKings is concerned, fees on purchases and redemptions are a relatively recent phenomenon, and there are a couple of main reasons why they’re starting to appear.

When it comes to VGW’s collection of sales tax, this was widely viewed as a voluntary move that came during a time of scrutiny around the sweepstakes casino industry.

Throughout 2025, several state legislatures were debating new rules that could restrict or ban sweepstakes gaming altogether – as one of the largest operators in the space and a founding member of the Social Gaming Leadership Alliance (SGLA), VGW’s decision to collect sales tax appeared to be part of a broader attempt to work more closely with regulators. However, several states including California, New York, and New Jersey still ultimately moved to restrict sweepstakes casino operations later that year.

When it comes to processing fees on coin purchases from operators like Legendz and WOW Vegas, the reasoning is likely more straightforward: these fees appear to be a way for brands to protect margins.

There are a couple of further factors at play here too. Firstly, the aforementioned wave of state-level restrictions began to shrink the available market for operators. At the same time, the remaining market has become increasingly competitive, with more casinos launching and fighting for the same customers. This puts additional pressure on operators to maximize revenue and make their platforms as sustainable as possible. Payment processing is a big expense for any online platform handling transactions, and adding a small fee to coin purchases can help cover those costs while improving margins.

And in the case of Card Crush and its $2:1 Mystery Coin exchange rate, it likely works because the platform operates in states where traditional sweeps casinos have been forced to leave, like California and New York. Essentially, beggars can’t be choosers, and when players have hardly any alternatives available, operators have much less incentive to use ‘fair’ pricing structures.

How to Minimize or Avoid Fees at Sweepstakes Casinos

The good news is that fees and hidden costs are still relatively uncommon, and there are a few ways to reduce the chances of paying extra:

Choose a sweepstakes casino with no purchase fees or hidden costs: Not every operator adds extra charges to coin purchases, and before buying a coin package, you can check the checkout screen (or read our reviews) to see whether any processing fees or taxes are being added on.

Take advantage of promotions and first-purchase bonuses: Sweepstakes casinos are generally known for their excellent array of bonuses and offers, so it’s always a good idea to keep an eye out for these deals to mitigate the effects of any added fees.

Compare redemption methods before withdrawing: Different payment providers can have different fees, so before requesting a redemption, always check whether your chosen method has any associated charges. To be double sure, you can always run a test redemption with a smaller amount too.

Consider bank transfers or ACH where available: The traditional banking methods are often the best choice for larger redemptions. They may not always be the fastest option, but they can sometimes avoid the extra costs associated with certain third-party payment providers like Coinflow and Skrill.