Sweepstakes casinos offer US players the chance to win cash prizes playing a variety of casino games, including slots, blackjack, roulette, and more. These sites are available in most US states, even those without real-money online casinos. So how are sweepstakes casinos legal? Here’s a breakdown of the legalities, starting with where each state stands on casino gaming online.
Are Online Casinos Legal in My State?
Players in most US states will have no problem playing at all sweepstakes casinos. However, there are some exceptions. The following states have banned all or most sweepstakes casinos:
- Connecticut
- Idaho
- Michigan
- Montana
- Nevada
- New York
- Washington
Sweepstakes casinos operate as “promotional sweepstakes giveaways,” where players can use virtual currency to play the games purely for fun (with Gold Coins) or for the chance to win cash prizes (with Sweeps Coins). For this reason, they are not considered real-money online casinos, and therefore are legally-allowed in most US states.
Latest Sweepstakes Casino Regulation News
New York Sweepstakes Casino Ban Bill Awaits Governor’s Signature
Published: June 19, 2025
James Foglio
Connecticut Joins Montana In Outlawing Sweepstakes Casinos
Published: June 17, 2025
James Foglio
SPGA Celebrates Louisiana Governor’s Veto of Sweepstakes Ban
Published: June 14, 2025
James Foglio
Current Sweepstakes Casino Legal Landscape
Sweepstakes casinos operate in a legal gray area across the United States, with regulations varying widely by state. While some states embrace these platforms as legal alternatives to traditional online casinos, others have taken a stricter stance, either banning them outright or imposing heavy restrictions. Here’s a state-by-state breakdown of where things stand.
| State | Real-Money Casinos | Sweepstakes Casinos |
| Alabama | ❌ No | 🟡 Some sites restricted |
| Alaska | ❌ No | ✅ Yes |
| Arizona | ❌ No | ✅ Yes |
| Arkansas | ❌ No | ✅ Yes |
| California | ❌ No | ✅ Yes |
| Colorado | ❌ No | ✅ Yes |
| Connecticut | ✅ Yes | ❌ No |
| D.C. | ❌ No | ✅ Yes |
| Delaware | ✅ Yes | 🟡 Some sites restricted |
| Florida | ❌ No | ✅ Yes |
| Georgia | ❌ No | 🟡 Some sites restricted |
| Hawaii | ❌ No | ✅ Yes |
| Idaho | ❌ No | ❌ No |
| Illinois | ❌ No | ✅ Yes |
| Indiana | ❌ No | ✅ Yes |
| Iowa | ❌ No | ✅ Yes |
| Kansas | ❌ No | ✅ Yes |
| Kentucky | ❌ No | 🟡 Some sites restricted |
| Louisiana | ❌ No | 🟡 Some sites restricted |
| Maine | ❌ No | ✅ Yes |
| Maryland | ❌ No | 🟡 Some sites restricted |
| Massachusetts | ❌ No | ✅ Yes |
| Michigan | ✅ Yes | ❌ No |
| Minnesota | ❌ No | ✅ Yes |
| Mississippi | ❌ No | ✅ Yes |
| Missouri | ❌ No | ✅ Yes |
| Montana | ❌ No | ❌ No |
| Nebraska | ❌ No | ✅ Yes |
| Nevada | ❌ No | ❌ No |
| New Hampshire | ❌ No | ✅ Yes |
| New Jersey | ✅ Yes | 🟡 Some sites restricted |
| New Mexico | ❌ No | ✅ Yes |
| New York | ❌ No | ❌ No |
| North Carolina | ❌ No | ✅ Yes |
| North Dakota | ❌ No | ✅ Yes |
| Ohio | ❌ No | 🟡 Some sites restricted |
| Oklahoma | ❌ No | ✅ Yes |
| Oregon | ❌ No | ✅ Yes |
| Pennsylvania | ✅ Yes | 🟡 Some sites restricted |
| Rhode Island | ❌ No | 🟡 Some sites restricted |
| South Carolina | ❌ No | ✅ Yes |
| South Dakota | ❌ No | ✅ Yes |
| Tennessee | ❌ No | ✅ Yes |
| Texas | ❌ No | ✅ Yes |
| Utah | ❌ No | ✅ Yes |
| Vermont | ❌ No | ✅ Yes |
| Virginia | ❌ No | ✅ Yes |
| Washington | ❌ No | ❌ No |
| West Virginia | ✅ Yes | ✅ Yes |
| Wisconsin | ❌ No | ✅ Yes |
| Wyoming | ❌ No | ✅ Yes |
States Moving to Ban Sweepstakes Casinos
Several states have begun to ban sweepstakes casinos or have introduced legislation to do so. Here are the states that have begun cracking down on sweepstakes casino gaming:
Alabama
Alabama has taken strict action against sweepstakes casinos, reinforcing its long-standing anti-gambling stance. In August 2024, Attorney General Steve Marshall shut down five gambling establishments, emphasizing that gambling remains illegal in the state. Alabama does not permit commercial casinos, sports betting, or online casinos, with only limited forms of charitable and tribal gaming allowed.
The Alabama Supreme Court ruled against sweepstakes casinos in 2013, classifying them as illegal gambling operations. Given the state’s rigid laws and enforcement efforts, many sweepstakes platforms, like McLuck, avoid operating in Alabama to prevent legal issues.
Connecticut
In February 2025, Connecticut legislators introduced Senate Bill 1235 (SB 1235) to prohibit online sweepstakes casinos within the state. The bill aims to ban both real and simulated online casino gaming and sports wagering offered by sweepstakes operators. Violations would be classified as a Class D felony, carrying penalties of up to five years in prison and a $5,000 fine.
This legislative move follows actions by the Connecticut Department of Consumer Protection (DCP), which, in October 2024, issued a cease and desist order to Virtual Gaming Worlds (VGW), the largest sweepstakes casino operator globally, accusing it of unlicensed gambling activities. In response, VGW ceased its operations in Connecticut.
The introduction of SB 1235 reflects Connecticut’s commitment to regulating online gambling and addressing the legal ambiguities surrounding sweepstakes casinos. The bill also seeks to prohibit lottery ticket resales and courier services, further tightening the state’s gambling regulations.
Delaware
Delaware has taken decisive steps to regulate sweepstakes casinos, reflecting its commitment to maintaining a controlled gaming environment. In February 2023, the Delaware Division of Gaming Enforcement issued a cease and desist order to Virtual Gaming Worlds (VGW), the operator of popular platforms like Chumba Casino, LuckyLand Slots, and Global Poker, instructing them to halt operations within the state due to violations of Delaware law.
Despite this directive, VGW continued its operations in Delaware, prompting further scrutiny from regulatory authorities.
In response to the evolving regulatory landscape, other sweepstakes casino operators, such as High 5 Games, proactively ceased accepting new players and purchases from existing players in Delaware as of February 18, 2025. This move underscores the increasing regulatory pressure on sweepstakes casinos operating within the state.
Georgia
Georgia has historically maintained stringent anti-gambling laws, permitting only the state lottery, charitable raffles, and bingo games. In 2012, the state legislature passed Senate Bill 431, targeting internet cafés that offered electronic sweepstakes games, effectively banning such operations by classifying them as unlawful lotteries.
Despite these restrictions, most online sweepstakes casinos continue to operate in Georgia, leveraging the state’s legal ambiguities. However, platforms like Spree Casino and Zula Casino have proactively excluded Georgia residents from participation, reflecting the state’s prohibitive stance.
As of early 2025, there have been no significant legislative moves in Georgia specifically targeting online sweepstakes casinos. Nonetheless, the state’s existing laws and the cautious approach of many operators underscore the complex legal environment surrounding sweepstakes casinos in Georgia.
Kentucky
Kentucky permits sweepstakes casinos but strictly regulates unlicensed gambling. While online sweepstakes casinos operate in a legal gray area, the state has cracked down on unregulated gaming machines. In 2024, Attorney General Russell Coleman declared “gray machines” illegal, leading to enforcement actions against businesses operating them.
Despite ongoing discussions about expanding legal gambling, Kentucky currently prohibits real-money online casinos. While some lawmakers push for broader legalization, the state remains focused on enforcing existing regulations against unauthorized gambling activities.
However, certain sweepstakes casinos have preemptively ceased operations in Kentucky due to the state’s stringent gambling regulations. For instance, McLuck Casino has opted not to operate in Kentucky to avoid legal complications.
Louisiana
Louisiana’s legal stance on sweepstakes casinos is nuanced. In 2014, the state enacted legislation targeting “gambling by electronic sweepstakes device,” imposing penalties of up to $20,000 in fines and five years of imprisonment for violations.
Despite this, many online sweepstakes casinos continue to operate in Louisiana. Platforms such as Stake.us, WOW Vegas, and McLuck Casino legally offer games by utilizing virtual currencies like Gold Coins and Sweeps Coins, which can be redeemed for cash prizes. This model aligns with state regulations, allowing residents to engage in casino-style games without breaching gambling laws.
However, a few sweeps casinos have left the state, including High 5 Casino and Crown Coins, have left the state to avoid legal complications.
Maryland
Maryland has recently intensified its efforts to regulate online sweepstakes casinos. In February 2025, Senator Paul Corderman introduced Senate Bill 860 (SB860), aiming to explicitly ban such platforms. The bill defines a sweepstakes casino as an online platform utilizing a dual-currency system of free and real money, mimicking traditional casino or lottery-style gaming. If enacted, SB860 would criminalize operations of these platforms and penalize suppliers providing services to them.
This legislative move follows actions by the Maryland Lottery and Gaming Control Agency, which issued cease-and-desist letters to several illegal online gambling operators, including those offering sweepstakes products. In response, platforms like McLuck and Hello Millions have ceased operations in Maryland, while others, such as Jackpota, Spree, and Mega Bonanza, withdrew from the state effective February 21, 2025.
Concurrently, Delegate Vanessa Atterbeary introduced House Bill 17 (HB17) to legalize online casino games for Maryland residents aged 21 and older. The bill proposes allowing existing casino operators and their partners to apply for online gaming licenses, imposing a 15% tax on gross gaming revenue, and enforcing protections against underage and problem gambling.
Michigan
Michigan has taken a firm stance against unlicensed online gambling, including sweepstakes casinos. The Michigan Gaming Control Board (MGCB) has issued cease-and-desist letters to several unlicensed online casinos, citing violations of state gaming laws. These platforms offered various casino-style games without proper authorization, prompting the MGCB to act to protect consumers and uphold the integrity of the state’s gaming industry.
Operating an unlicensed gambling service in Michigan is a felony, punishable by up to 10 years in prison, a fine of up to $100,000, or both. The MGCB has given these operators 14 days to cease their illegal activities, warning that failure to comply will result in further legal action in collaboration with the Michigan Attorney General’s Office.
In summary, Michigan explicitly prohibits unlicensed online gambling, including sweepstakes casinos, and continues to enforce these laws rigorously to ensure consumer protection and regulatory compliance.
Montana
In May 2025, Montana enacted Senate Bill 555, making it the first US state to officially ban online sweepstakes casinos. The law, signed by Governor Greg Gianforte, takes effect on October 1, 2025. While the bill doesn’t explicitly mention “sweepstakes casinos,” it broadly prohibits any online platform that facilitates gambling using any form of currency and offers payouts in any currency. Violations are classified as felonies, punishable by up to 10 years in prison and fines up to $50,000 per offense. (These punishments would be on the operators, not on the players, so this isn’t something to worry about unless you run a sweepstakes casino).
In anticipation of the law, almost all sweepstakes casino operators—including McLuck, Crown Coins, Stake, Chumba Casino, and dozens more—have already ceased operations in Montana. The legislation has faced criticism from industry groups like the Social and Promotional Games Association (SPGA), which argue that the law’s vague language could inadvertently impact legitimate promotional activities beyond gambling.
While traditional social casinos that don’t involve real or virtual currency may continue to operate, the future of such platforms in Montana remains uncertain as the state redefines its stance on online gaming.
Nevada
Nevada has taken decisive actions against unregulated gambling operations, including those resembling sweepstakes casinos. In March 2025, the Nevada Gaming Control Board (NGCB) issued a cease-and-desist order to Kalshi, a prediction market platform, asserting that offering event-based contracts without a state gaming license violates Nevada law. NGCB Chairman Kirk Hendrick emphasized that any attempts to circumvent Nevada’s regulatory framework would face stringent penalties.
In a related development, Global Poker, a prominent sweepstakes poker platform, announced its exit from the Nevada market. The company informed players that, starting April 15, 2025, its services would no longer be available in the state. This decision aligns with Global Poker’s broader strategy to withdraw from states where regulatory scrutiny of sweepstakes models is intensifying.
These developments underscore Nevada’s commitment to enforcing its gaming regulations and addressing unlicensed gambling activities within its jurisdiction.
New Jersey
New Jersey has recently shifted from considering regulation of sweepstakes casinos to actively moving toward banning them. In early 2025, Assemblyman Clinton Calabrese introduced a bill (A5196) to regulate and license online sweepstakes casinos, but by March, he reversed course and proposed a new bill (A5447) to prohibit their operation entirely. This move signals the state’s intent to crack down on unregulated gaming platforms that use the sweepstakes model.
The New Jersey Division of Gaming Enforcement (DGE) already enforces strict regulations on gambling, ensuring that all operators comply with state laws. While sweepstakes casinos currently operate in a legal gray area, A5447 aims to explicitly ban them and penalize unlawful gambling operations. While not many major platforms have exited New Jersey yet, the potential ban could force sweepstakes casinos to either adjust their models or leave the state entirely.
Ohio
In 2013, Ohio enacted legislation that led to the closure of numerous internet cafes operating as sweepstakes parlors. The state determined that these establishments violated gambling laws by offering games that closely resembled slot machines, thereby constituting illegal gambling operations. This crackdown aimed to protect consumers and uphold the integrity of the state’s gaming regulations.
More recently, Ohio has continued to scrutinize sweepstakes casinos operating online. The Ohio Casino Control Commission has taken action against certain operators, ordering them to cease operations within the state. These measures reflect the state’s ongoing commitment to ensuring that all gaming activities comply with established legal standards.
Despite past actions, sweepstakes casinos continue to operate in Ohio under a “no purchase necessary” model, aligning with federal regulations that distinguish these platforms from traditional gambling establishments. However, the legal landscape remains complex and subject to change. Ongoing legislative discussions and regulatory reviews indicate that Ohio may further refine its stance on sweepstakes casinos in the near future.
Rhode Island
In Rhode Island, all games of chance require authorization from the Rhode Island State Police. The regulations specify that the entire proceeds from these games, after deducting reasonable expenses, must be used exclusively for charitable purposes.
As of February 18, 2025, High 5 Casino ceased accepting new players and purchases from existing players in Rhode Island. Existing players were given until March 14, 2025, to redeem any eligible Sweeps Coins before the platform’s operations in the state were discontinued. This action aligns with a broader trend where sweepstakes operators are adjusting their services in response to increasing legal scrutiny. For instance, Stake.us has also updated their terms of service to restrict access in several states, including Rhode Island, likely due to the evolving regulatory landscape.
Overall
It seems that more and more state lawmakers have started to ban sweepstakes casinos, arguing that the sweepstakes model is a legal loophole to allow online gambling. Sweepstakes casinos have been complying with these bans, pulling out of states that restrict them despite being compliant with sweepstakes laws. It’s likely that a future legal battle will ensue. But, for now, sweepstakes casinos have been quite amicable with regulators, and restrict their offerings accordingly.
If you’re located in any of these states, you likely still have access to some sweepstakes casinos, just not all of them. Be sure to read the terms and conditions before signing up to ensure you’re in a location with access to the sweepstakes casino in question.
Operating Under Sweepstakes Laws
By strictly adhering to sweepstakes laws, sweepstakes casinos can legally give cash prizes for winning casino-style games. Sweepstakes laws require sites to offer the chance to win with no purchase necessary, which is why players always receive free Sweeps Coins when they sign up, as well as through various other methods, such as daily log-in bonuses.
No Real Money Gambling
Further, sweepstakes casinos offer two types of coins: Gold Coins and Sweeps Coins. Neither coin holds any monetary value, meaning no playing is done using real money funds. Instead, players can redeem the Sweeps Coins that they win for a cash prize.
Sweeps Coins cannot be outright purchased either. Instead, they’re given only as bonuses for actions such as purchasing Gold Coins, participating in giveaways, or by completing a mail-in request. Because they don’t hold monetary value, playing with them isn’t considered gambling under US law.
Read More: Sweepstakes Casinos Vs. Real-Money Casinos
Equal Opportunity to Win
The amount of Sweeps Coins or Gold Coins a player has does not affect their odds of winning. Everyone has the same chance to win, which complies with sweepstakes law. For example, a player with 10,000 Sweeps Coins has the same odds on a slot machine as a player with 10 Sweeps Coins – at least at reputable casino sites. At untrustworthy sweepstakes casinos, games are rigged or favor only the highest rollers.
How Online Casino Laws Work in the US
In the US, the Wire Act of 1961 prohibits transmitting bets or wagering information across state lines. It is still legally unclear whether the Wire Act applies strictly to sports betting or if other forms of gambling, such as casinos and poker, apply as well. For all intents and purposes, though, it does, because state-regulated online casinos do not offer their services to players in states they’re not licensed in.
For example, BetMGM Sportsbook is available in Arizona and New Jersey because both states license operators for sports betting. However, Arizona has not legalized online casinos like New Jersey did, so BetMGM Casino is only available in New Jersey and not in Arizona. Folks in Arizona must instead play at sweepstakes casinos or unlicensed offshore casinos to win money on slots and other casino-style games.
In 2006, the Unlawful Internet Gambling Enforcement Act (UIGEA) was passed, which prevents payment processors from facilitating transactions for illegal online gambling. That’s why gamblers have trouble using Visa or MasterCard when playing at offshore casinos, and why PayPal will likely never be an option at offshore gambling sites.
This doesn’t make online gambling illegal. But the UIGEA does make it more difficult for players to gamble online anywhere but at state-licensed online casinos.
State Licensing
At the end of the day, it’s up to each individual state in the US to determine their own online gambling laws. The very few that offer state-licensed online casinos include Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. For the rest of the country, sweepstakes casinos will have to do.
Read More: Sweepstakes Casino Trends To Watch
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Laws and regulations regarding sweepstakes casinos vary by jurisdiction and are subject to change. Readers are advised to consult with a qualified attorney or legal professional for advice tailored to their specific circumstances. The author and publisher are not responsible for any actions taken based on the information provided in this article.