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 18 and up will have no problem playing at all sweepstakes casinos in most US states. However, there are some exceptions. Washington and Idaho are two states that ban all sweepstakes play. If you’re in those states, your only option for casino-style games online are offshore casinos.
It seems that more and more states 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.
State | Real-Money Casino | Sweepstakes Casinos |
Alabama | ❌ No | 🟡 Some sites restricted |
Alaska | ❌ No | ✅ Yes |
Arizona | ❌ No | ✅ Yes |
Arkansas | ❌ No | ✅ Yes |
California | ❌ No | ✅ Yes |
Colorado | ❌ No | ✅ Yes |
Connecticut | ✅ Yes | 🟡 Some sites restricted |
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 | 🟡 Some sites restricted |
Minnesota | ❌ No | ✅ Yes |
Mississippi | ❌ No | ✅ Yes |
Missouri | ❌ No | ✅ Yes |
Montana | ❌ No | 🟡 Some sites restricted |
Nebraska | ❌ No | ✅ Yes |
Nevada | ❌ No | 🟡 Some sites restricted |
New Hampshire | ❌ No | ✅ Yes |
New Jersey | ✅ Yes | 🟡 Some sites restricted |
New Mexico | ❌ No | ✅ Yes |
New York | ❌ No | ✅ Yes |
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 |
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.
The same is also true for real-money online casinos. However, this is just one aspect of several needed to fall within sweepstakes laws.
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.