Where Are Sweepstakes Casinos Legal?

In a bid to avoid unwanted attention from authorities, many sweepstakes casinos choose not to operate in states like Alabama, West Virginia, Maryland, Nevada, and Kentucky. These states have, in various ways, shown resistance to the format. In fact, some states are in the process of debating anti-sweeps bills. However, this doesn’t mean all casinos are unwilling to operate there – many continue to do so legally until the laws evolve. Montana is the only state to have passed an anti-sweeps bill so far in 2025.

Notably, there are also restrictions regarding prizes in Florida and New York. In both of these states, the maximum prize you can win at sweepstakes casinos is $5,000. Any prize won above $5,000 is considered void.

To legally play at a sweepstakes casino, you must be 18 years or older and reside in a legal state. However, check the site’s terms and conditions, as some operators like Stake.us, Chumba, and LuckyLand Slots only accept players who are 21+. Social casinos do conduct KYC (Know Your Customer) checks and will request your ID and documents showing proof of address.

Alrighty – now that you understand the basic legal situation surrounding sweepstakes casinos, join me as I take you deeper into the world of sweepstakes regulations and demystify the industry. I will explain exactly how sweepstakes casinos can operate legally and show you the best sites to win cash prizes in the US!

What States Allow Sweepstakes Casinos?

Did you know 95% of adult Americans can legally access sweepstakes casinos? You’ll find these special social casinos in the following states.

You can still find legit sweepstakes casinos in every state except Washington and Michigan, and it’s expected that Montana will ban sweepstakes casinos in October 2025 due to a new law passed there. Also, many sweepstakes casinos have pulled out of states that have regulated online casinos or a strong anti-gambling stance, like Connecticut, Delaware, and Kentucky.

Except for Quebec, Canadians can also join select sweepstakes casinos and play their favorite games for free.

What States Have Banned Sweepstakes Casinos?

Sweepstakes casinos are illegal in Washington. The Washington Gambling Commission states, “No Washington law or rule uses ‘sweepstakes’ to reference a raffle or promotional contest of chance, as this type of activity is not authorized.”

Michigan was also one of the first states to come after sweepstakes casinos. In October 2023, following a two-year investigation, Michigan Attorney General Dana Nessel ordered Golden Hearts Games to shut down its operations in the state, and then the authorities made it a priority to pursue unregulated gaming in general. After the crackdown, most legit sweepstakes casinos exited the Wolverine State, fearing similar legal action.

While sweepstakes casinos are not illegal in Idaho, players there are prohibited from receiving cash prizes. Residents in the Gem State can only play using Gold Coins, which defeats the purpose of sweepstakes casinos for many players.

In May 2025, Montana passed an anti-sweepstakes bill in the form of SB555. The Governor signed it into law, and it’s expected to come into effect in October 2025, so we expect all sweepstakes casinos to exit by then.

The next states to watch are Connecticut, New Jersey, New York, Nevada, and Louisiana. SB1235 in CT and A5447 in NJ are potential candidates to follow in Montana’s footsteps, with NY, NV, and LA all having proposals debated in the state legislatures too. In fact, Connecticut recently showed hostility towards sweeps casinos when its regulator alleged High 5 was operating as an illegal platform.

How Are Sweepstakes Casinos Legal?

Sweepstakes casinos are legal because they follow sweepstakes regulations, which state that social casinos can offer games of chance and real money prizes if there is no purchase necessary to enter.

But then, you might wonder how online sweepstakes casinos make money if entry must be free. Well, sweepstakes casinos came up with a loophole by using two virtual currencies, Sweeps Coins (can be redeemed for cash prizes) and Gold Coins (can’t be redeemed).

How it works is, you get Sweeps Coins via free bonuses, but often only a small amount – for example, the casino gives you 1 SC every 24 hours when you log in to your account.

If you want more Sweeps Coins, you can purchase a Gold Coins package and receive Sweeps Coins as a complimentary gift. Any sweepstakes casino where you can purchase Sweeps Coins, or which does not provide ample free play can draw the attention of regulators and get shut down for running an illegal online casino.

Another key sweepstakes regulation that social casinos have to abide by is, they must offer players an alternate method of entry. This is so the sweepstakes promotion is inclusive, regardless of whether a player purchases coins or not. That’s why you’ll see a unique mail-in or AMOE bonus at sweepstakes casinos.

With this bonus, you handwrite a letter asking the sweepstakes casino for free Sweeps Coins, put it in a stamped envelope, and send it off to the casino’s offices. The standard mail-in bonus is 3 SC to 5 SC.

US sweepstakes casinos also have to be very careful about the language they use. For example, you don’t “deposit”, you “purchase” a Gold Coins package. You don’t “withdraw” cash, you “redeem” your Sweeps Coins and receive a prize. Also, you aren’t “betting” or “wagering”, you are “playing” using Gold or Sweeps Coins. Use of inappropriate language can get a social casino classed as an unlicensed online casino.

Online Casinos vs Sweepstakes Availability in the US

Real money online casinos are legal in just 7 states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. In contrast, sweepstakes casinos are legal in 46 US states.

The ability of sweepstakes casinos to operate across the US while still offering a similar gaming experience to online casinos has made them incredibly popular as operators pull in over $4 billion in total net revenue annually!

At sweepstakes casinos, you can play the latest slots and classic table games, win real money prizes, and even receive more bonuses with better terms and conditions than you typically would at an online casino. For example, the average online casino welcome bonus features a 30x wagering requirement, while Sweeps Coins typically only need to be played 1x before they’re eligible for redemption.

It will be interesting to see what happens in the future as more states legalize real money online casinos and potentially crack down on sweepstakes casinos. Will online sweepstakes casinos continue to thrive? I think so because the no purchase necessary requirement will always be a huge draw for players looking for free play.

How to Find The Best Legal Sweepstakes Casinos in the US

Sweepstakes casinos are not as tightly regulated as traditional online casinos, which means you have to be careful when choosing a site. When evaluating a new social casino, SweepsKings explores these characteristics:

Operated by a registered US-based company – Legal sweepstakes casinos must be owned and operated by a company registered in the US. This also gives you some protection because if something goes wrong, you can sue the company in the US. For example, Chumba Casino was recently successfully sued in Kentucky and ended up paying out over $10,000,000 in a settlement.

Games from licensed providers – Even though sweepstakes casinos aren’t licensed, the top sites have games from licensed providers like Pragmatic Play, BGaming, Kalamba, and Novomatic. I personally refuse to play sweepstakes games that haven’t been tested; otherwise, you could find yourself being scammed by rigged games. McLuck is my pick in terms of providers, with over 30 to choose from!

Using compliant sweepstakes language – Avoid any sweepstakes casino that talks about betting, deposits, and winning cash. This is a classic sign that the site is actually an illegal online casino masquerading as a social casino.

Conducts KYC – Even though KYC is annoying, all legit sweepstakes casinos are mandated by law to check that you are 18+ and don’t reside in a restricted state. BCGame.us has a very smooth KYC process. It only took me a few minutes to get my account verified.

Satisfactory amount of free Sweeps Coins – Sweepstakes casino sites are legally obligated to give away free SC. The site should have a no-deposit bonus, first purchase offer, daily login promo, referral bonus, and mail-in bonus. In my opinion, Stake.us has some of the best promotions, including a 25 SC no deposit bonus and rakeback!

Follows responsible gaming practices – Sweepstakes casinos that actually care about their players conduct regular player checks, connect players with free gaming counseling if they need it, and have the latest responsible gaming tools. These features include deposit, time, and loss limits, as well as self-exclusion options. High 5 is known for its strong approach to responsible gaming.

Secure payment methods – Shady sweepstakes casinos only accept crypto or Cash App, while legit sites accept Visa, Mastercard, PayPal, Skrill, and online bank transfers. Also, at top-rated sweepstakes casinos, you can receive your cash prize within 48 hours. Stake.us processes redemptions within minutes via BTC, ETH, USDT, and gift cards.

Summary

Right now, you can play the latest slots and table games and redeem cash prizes at sweepstakes casinos in all US states, excluding Michigan, Washington, Montana, and Idaho. These social casinos have been operating legally for 13+ years, and there are now millions of players across the US playing everything from progressives to fish games to blackjack.

Sweepstakes casinos can operate legally because they make a favorable assessment of sweepstakes regulations, which means they can offer games of chance and cash prizes if there is no purchase necessary to participate.

This interpretation has recently been put to the test in Michigan, which declared sweepstakes casinos illegal there. Lobby groups have been pushing regulators to take measures against sweepstakes casinos, so additional restrictions might be introduced in the future.

The legal status of the industry is not stable. States with regulated online casinos, like Delaware and West Virginia, are cracking down on unregulated gambling as they don’t want to miss out on valuable tax revenue, while anti-gaming states, including Alabama, are attempting to close loopholes.

SweepsKings will keep you updated on the latest legal changes, but as of now, you are free to play at sweepstakes casinos in 46 US states.