Where Are Sweepstakes Casinos Legal?

In a bid to avoid unwanted attention from the authorities, many sweepstakes casinos like McLuck don’t operate in Alabama, West Virginia, Maryland, Montana, Nevada, and Kentucky. There are also restrictions when it comes to prizes in Florida and New York. In both of these states, the max 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, but many sweepstakes casinos have pulled out of states that have regulated online casinos like Pennsylvania and Delaware and also avoided states with a strong anti-gambling stance like Alabama and Georgia.

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

What States Have Banned Sweepstakes Casinos?

Sweepstakes casinos are illegal in Washington and Michigan. 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 is the latest state 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. Michigan’s authorities are going after all unregulated gaming. After the crackdown, most legit sweepstakes casinos exited the Wolverine State, fearing similar legal action.

While sweepstakes casinos are not illegal, Idaho players are prohibited from receiving cash prizes. Players from the Gem State can only play using Gold Coins, which kind of defeats the purpose of sweepstakes casinos, whose major selling point is real money prizes.

The next four states to watch are Florida, Maryland, New York, and West Virginia. In the first three, senators have introduced new bills (SB 1404, SB 0860, SB 5935) that would ban sweepstakes casinos, while in West Virginia, Attorney General JB McCuskey has subpoenaed a number of operators.

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 give enough ample free play can draw the attention of the FTC and get shut down for running an illegal online casino.

Another key sweepstakes regulation that social casinos have to abide by is that they must offer players an alternate method of entry. This is so the sweepstakes promotion is inclusive. 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, pop it into a stamped envelope, and send it off to the social casino’s HQ, and then SC magically appears in your account. The standard mail-in bonus is 3 SC to 5 SC.

US sweepstakes casinos have to be very careful about the language they use. For example, you don’t deposit, instead, you purchase a Gold Coins package. You don’t withdraw cash, instead, 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, including Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. In contrast, sweepstakes casinos are legal in 48 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 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 tightly regulated like 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 10 million+ 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, Nolimit, and NetEnt. 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 25 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 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 like deposit, time and loss limits, and self-exclusion. 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, 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 are able to operate legally because they take a loose interpretation of sweepstakes regulations, which state you can offer games of chance and cash prizes if there is no purchase necessary to participate.

This loose interpretation has recently been put to the test in Michigan, which has declared sweepstakes casinos illegal. 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.

However, don’t count out social casinos because VGW recently won an important court case in Florida! SweepsKings will keep you updated on the latest legal changes, but as of now, you are free to play at sweepstakes casinos in 48 US states.