How Sweepstakes Casinos Work

Sweepstakes casinos look like online casinos: slots, table games, jackpots. But legally they’re run as promotional sweepstakes, the same kind of law that covers a soda company’s “win a car” contest. That’s why they’re available in most US states where real-money online casinos aren’t. It’s also why a growing number of states are banning them.

The short answer

• In most states, yes. They operate under sweepstakes law because you never have to pay to play, though regulators in several states dispute that. There’s always a free way to get the coins you can win prizes with.
• No, not everywhere. As of November 2026, sweepstakes casinos are banned or blocked in 13 states, and regulators in several more are acting against them. See sweepstakes laws by state.
• The bans target the companies, not players. We haven’t found any state ban that penalizes individual players. But if your state bans them, casinos will close your access, and any Sweeps Coins left after the cut-off can be lost.

Why sweepstakes casinos are legal

Under US law, a lottery or illegal gambling game has three parts: a prize, chance, and consideration (paying to take part). Take away any one and it’s no longer an illegal lottery. Sweepstakes casinos remove consideration.

They do it with an alternative method of entry, usually called AMOE. You can always get Sweeps Coins for free, typically by mailing in a request card or through daily login bonuses, and the free route has to give you the same chance to win as paying would. As one gaming lawyer puts it, removing consideration turns a lottery into a legal sweepstakes.

States that ban sweepstakes casinos argue that this doesn’t hold up: players buy coins because they want the Sweeps Coins that come with them, so in their view people are paying to play. California’s ban, for example, covers dual-currency games with “direct or indirect” consideration.

How the two coins work

Almost every sweepstakes casino uses two currencies:

• Gold Coins (GC) are for fun. You get them free and can buy more. They can never be redeemed for anything.
• Sweeps Coins (SC) are the prize currency. You can’t buy them directly. You get them free: on sign-up, through daily bonuses, by mail-in request, or as a free bonus when you buy a Gold Coin package.

Some casinos use their own names, such as Fortune Coins, Promotional Entries or Stake Cash, but the idea is the same.

To turn Sweeps Coins into a prize, you usually have to:

1. Play them through. Typically once (1x), though some casinos’ rules allow more. Chumba’s rules, for example, say coins must generally be played once but allow up to 20 plays.
2. Reach the minimum. It varies a lot: from about 10 SC for gift cards at some casinos to 100 SC for cash at others. At most casinos, 1 SC is worth $1 when redeemed.
3. Verify your identity. Every legitimate casino checks your ID and address before paying a prize, and the details must match your account.

How free mail-in entries work

The mail-in request is the legal backbone of a sweepstakes casino, and it’s a real way to get free Sweeps Coins. At Chumba, for example, you get a request code from your account, write it with your details on a 4” x 6” card, and mail it to the address in its sweepstakes rules. Each card is worth 5 Sweeps Coins there. The amount and rules differ at every casino, so read the official sweepstakes rules first. Our free coins page lists what each casino we review gives you.

Where sweepstakes casinos are banned

The first wave of bans came in 2025. More followed in 2026:

State	Law	In effect since
New Jersey	A 5447	August 15, 2025
Connecticut	SB 1235 (Public Act 25-112)	October 1, 2025
Montana	SB 555	October 1, 2025
New York	S 5935-A	December 5, 2025
California	AB 831	January 1, 2026
Tennessee	SB 2136	May 22, 2026
Indiana	HB 1052	July 1, 2026
Maine	LD 2007	July 14, 2026
Louisiana	HB 883 and HB 53	August 1, 2026
Oklahoma	SB 1589	November 1, 2026

Idaho, Nevada and Washington block sweepstakes casinos under laws they already had. Elsewhere, regulators or attorneys general in states including Michigan, Florida, Illinois, Mississippi and Delaware are acting against operators without a new law, and several casinos have left those states too.

Most of these laws punish operators and the companies that support them: payment processors, game suppliers, geolocation providers and, in several states, affiliates and promoters. Penalties include civil fines of $10,000 to $100,000 per violation in Maine and New York, fines of up to $250,000 for repeat violations in New Jersey, and criminal charges in Oklahoma (a felony) and Louisiana (up to five years in prison).

Our Bill Radar tracks new bills as they move.

What it means for you

• Check your state first. Use our state laws page, then the casino’s own excluded-states list. Every casino sets its own list, and some skip states that are only considering a ban.
• If your state passes a ban, casinos usually give a cut-off date. Redeem eligible Sweeps Coins before then and keep screenshots of your balance.
• Don’t use a VPN. It breaks every casino’s terms, and they can close your account and void your prizes.
• Mind the age limit. It’s 18+ at some casinos and 21+ at others, including Chumba and several big brands that raised their limit in 2025.
• Prizes are taxable. The IRS treats prizes as income. From tax year 2026, casinos send a Form 1099-MISC once your prizes reach $2,000 in a year (it was $600), but you have to report prizes even below that.

If you play, set a budget before you buy any coins. See our responsible gaming page for limits, self-exclusion and free help. This page explains the law in general terms and isn’t legal advice.

Sources

• Klein Moynihan Turco (via Mondaq): The sweepstakes AMOE in a nutshell (Apr 25, 2023)
• ZwillGen: California AB 831 and dual-currency games (Oct 14, 2025)
• Chumba Casino Sweeps Rules, version 18.0 (Aug 28, 2025)
• Gambling.com: sweepstakes casino laws by state (updated Oct 20, 2026)
• InfoLawGroup: sweepstakes casino laws in 2026 (Jul 27, 2026)
• Covers: Indiana governor signs ban (Mar 13, 2026), Tennessee governor signs bill (May 26, 2026), New Jersey ban signed (Aug 15, 2025)
• Lines.com: Maine casinos must exit by July 14 (Jun 11, 2026)
• Gambling.com: Louisiana ban takes effect August 1 (Jul 21, 2026), Oklahoma veto override (May 19, 2026)
• CasinoBeats: New York ban signed (Dec 8, 2025)
• Sweepsy: Montana and Connecticut bans in effect (Oct 9, 2025), operators moving to 21+ (Jun 13, 2025)
• Verrill: the new $2,000 Form 1099-MISC threshold for prize winners (Nov 13, 2025)