Where Are Online Sweepstakes Casinos Legal in the U.S.

Legal in Most States

While sweepstakes casinos are legal in most states, operators often choose not to serve every location due to their interpretation of local regulations or potential legal risks. For instance, Fortune Coins currently operates legally in 47 states and Washington D.C., excluding 3 states. Players should always review an individual platform’s terms and their state-specific regulations before participating.

» Want to know if a specific sweepstakes casino is allowed in your state? Take a look at our full list of sweepstakes casinos in the US and their respective reviews.

Why Sweepstakes Casinos Are So Widely Available

While there are superficial similarities between various types of online iGaming, the U.S. landscape includes three distinct models: regulated real-money casinos, sweepstakes-based platforms, and purely social casino games.

Three Models, Three Sets of Rules

Most Americans don’t live in a state where real-money online casinos are legal. These platforms require full gambling licenses and are fenced to specific states like New Jersey, Michigan, and Pennsylvania. Access is restricted using geolocation, and players must verify their identity before making deposits or cashing out. Everything from the games offered to the payment methods used is regulated.

Sweepstakes casinos take a different route. They don’t require gambling licenses because they aren’t technically gambling sites. Players use virtual currencies—some for entertainment (Gold Coins) and others for potential redemption (Sweeps Coins). As long as players can participate without paying, these platforms remain legal under sweepstakes laws. That’s why you’ll find them operating in nearly every state, aside from a few like Washington and Idaho where the model has been directly challenged.

Then there are social casinos—apps and websites that offer casino-style games purely for fun. Nothing players earn or win can be turned into cash or prizes. Because no value is exchanged or at risk, they aren’t subject to gambling rules at all. Some sweepstakes casinos operate in states where they’d normally be restricted or banned by simply cutting the currency that can be redeemed from their offer—effectively operating as social casinos.

What It Means for Players

The regulatory differences shape how and where players can access each type of casino.

Real-money platforms are confined to a small group of states and require players to be physically located within those borders. That limits their audience, but also means players benefit from strict oversight and high-quality, licensed content.

Sweepstakes casinos offer a middle ground: widely accessible, legal in most of the U.S., and with a chance to redeem virtual currency for real-world prizes. They fill the gap for players in states without regulated gambling options, offering slots, keno, and even fish games with minimal friction.

Social casinos are the most casual option of all. They’re designed for pure entertainment, available anywhere, and usually include features like daily rewards or themed events—but there’s no way to convert progress into money.

Cashing In (Or Not)

How money flows through these platforms is another point of contrast.

Licensed online casinos accept real-money deposits and process withdrawals through familiar channels like bank transfers, cards, and e-wallets. Transactions are fast but monitored, often requiring ID verification and compliance with anti-money laundering rules.

Sweepstakes casinos don’t accept gambling deposits. Instead, players buy coin bundles that may include bonus Sweeps Coins. Once players earn enough SC—usually between 50 and 100—they can redeem them for cash or gift cards after verifying their identity.

Social casinos don’t offer any redemptions at all. Any money spent goes toward virtual currency to keep playing, and all rewards are digital or cosmetic.

Quick Breakdown: What Makes Each Model Unique

States with Specific Restrictions or Bans

Several states have imposed explicit restrictions or outright bans on sweepstakes casinos:

• Washington: Explicitly bans sweepstakes casinos entirely. All operators have ceased operations.
• Idaho: Broadly prohibits all forms of gambling, including sweepstakes casinos and casino game simulations.
• Kentucky: Bans electronic sweepstakes machines offering prize-based games of chance; sweepstakes must clearly disclose all terms and provide free entry.
• Michigan: Requires sweepstakes to be completely free of consideration. Charging players indirectly, such as for internet access or in-person entry, violates state law.
• Montana: Effective October 1, 2025, Senate Bill 555 bans platforms that facilitate any form of betting or payouts. Penalties include up to 10 years imprisonment and fines up to $50,000.
• Nevada: Sweepstakes promotions must strictly adhere to Nevada Gaming Control Board regulations and provide clearly disclosed free entry.
• Alabama: Allows sweepstakes only if participation is completely free; state constitutional rules against lotteries heavily influence restrictions.
• Georgia: Requires that sweepstakes offer completely free participation; running lotteries without a license is considered a felony.
• Connecticut: Passed Senate Bill 1235 targeting online sweepstakes casinos that simulate gambling and use dual-currency systems. Penalties include imprisonment and fines.
• Louisiana: Proposed Senate Bill 181 aims to broadly prohibit sweepstakes casinos using “simulated gambling devices.” Existing law already heavily restricts electronic sweepstakes gaming.
• New York: Attorney General has taken a strict stance, issuing cease-and-desist letters to 26 operators. Bills aiming to ban simulated gambling platforms are progressing through the legislature, prompting major operators to withdraw.
• Tennessee: Legal if structured to avoid lottery definitions clearly, without requiring monetary consideration from participants.
• Vermont: Prohibits any sweepstakes promotions requiring purchase or entry fees.

Legal Status of Sweepstakes Casinos in all US States

Changing Landscape

The regulatory environment is evolving rapidly, with several states actively reevaluating their stance on sweepstakes casinos:

Recent Legal Developments

New York’s Aggressive Stance

New York has aggressively targeted online sweepstakes casinos. In March 2025, Attorney General Letitia James sent cease-and-desist letters to 26 operators, publicly announcing these actions in June 2025. The state’s argument centers on virtual coins that can be redeemed for prizes, viewing this as risking something of value, thus categorizing it as gambling.

Several bills have been introduced to clearly define and prohibit online sweepstakes games. For example, Assembly Bill 6745 is advancing through committees. Due to these pressures, major companies like VGW, which owns Chumba, Global Poker, and LuckyLand, plan to withdraw from New York by August 2025. Industry groups have criticized these moves, arguing that sweepstakes promotions remain legal under federal law and most state laws.

Montana Implements Ban

Montana has opted for an outright ban with Senate Bill 555, signed by Governor Greg Gianforte, effective October 1, 2025. The new law broadly restricts platforms transmitting gambling-related information or allowing wagers with currency, leading to criticism that the law is overly broad.

Connecticut and Louisiana Considering Bans

Connecticut and Louisiana are also considering similar measures. Connecticut’s Senate has passed Senate Bill 1235 targeting virtual currency-based sweepstakes casinos. Louisiana’s legislature passed Senate Bill 181, which is awaiting final approval. Louisiana already has strict laws against electronic sweepstakes gambling.

Other States Taking Steps

Additional states are actively considering regulations or enforcement actions. Ohio’s House Bill 298 aims to ban sweepstakes casinos among other changes. Recent sessions in New Jersey, Mississippi, Maryland, Nevada, and Florida have seen bills to restrict these platforms. Regulators in Michigan, Maryland, and West Virginia have issued enforcement actions, prompting operators like VGW to exit Michigan, Nevada, and Washington and switch operations to “gold coins only” in others.

States Rejecting Bans

Despite the restrictive trend, not all states agree. Arkansas, Maryland, Mississippi, and Florida have rejected similar bans in 2025, indicating diverse approaches nationwide.

Overall Impact

The increased regulatory scrutiny marks a critical juncture for sweepstakes casinos. Regulators are increasingly treating these platforms as unregulated gambling, challenging their previously permissible status. While operators push back and seek balanced regulations, the industry’s future likely involves navigating stricter oversight or significant operational changes.