How Sweepstakes Casinos Work Under US Law
Sweepstakes casinos operate under a promotional sweepstakes model. Players receive virtual currency through a no-purchase-necessary entry method and can redeem prizes won with Sweeps Coins. Because no purchase is required to play, these platforms argue they fall outside traditional state-level regulations that govern licensed operations.
However, this legal theory has been increasingly challenged. In 2025-2026, multiple states passed laws explicitly banning dual-currency sweepstakes models, while others used enforcement actions (cease-and-desist letters) to push operators out. The regulatory landscape is shifting rapidly.
2025-2026 Legislative Trend
The period from mid-2025 through early 2026 saw unprecedented legislative action against sweepstakes casinos. Montana became the first state to pass a specific ban (SB 555, May 2025). New Jersey (A5447, August 2025), Nevada (SB 256, October 2025), New York (S5935A, December 2025), and California (AB 831, January 2026) followed. Tennessee's AG issued cease-and-desist letters in December 2025, and Illinois's Gaming Board did the same in February 2026. Several states with regulated iGaming markets view sweepstakes casinos as unlicensed competitors.
All 15 States at a Glance
Florida
AvailableFL · 18+ required
Texas
AvailableTX · 18+ required
Georgia
AvailableGA · 21+ required
Ohio
AvailableOH · 18+ required
Michigan
RestrictedMI · 18+ required
Illinois
Under ScrutinyIL · 18+ required
Pennsylvania
Under ScrutinyPA · 21+ required
Tennessee
Under ScrutinyTN · 18+ required
New York
RestrictedNY · 21+ required
New Jersey
BannedNJ · 18+ required
California
BannedCA · 18+ required
Washington
BannedWA · 18+ required
Idaho
BannedID · 18+ required
Montana
BannedMT · 18+ required
Nevada
BannedNV · 21+ required
Frequently Asked Questions
Are sweepstakes casinos legal in the United States?
Sweepstakes casinos operate under a promotional sweepstakes model with no purchase necessary. They are legal in most states, but several states have banned them, including California, New York, New Jersey, Washington, Idaho, Montana, and Nevada. Michigan restricts them through enforcement, and Illinois, Pennsylvania, and Tennessee have them under active scrutiny.
Which states have banned sweepstakes casinos in 2025-2026?
As of March 2026, seven states have effectively banned sweepstakes casinos: California (AB 831, effective January 2026), New York (S5935A, signed December 2025), New Jersey (A5447, signed August 2025), Montana (SB 555, effective October 2025), Nevada (SB 256, effective October 2025), Washington (longstanding RCW 9.46 enforcement), and Idaho (constitutional prohibition).
What is the difference between a sweepstakes casino and a traditional online platform?
Sweepstakes casinos use a dual-currency system where players receive virtual coins through a no-purchase-necessary model. Players can play using Gold Coins (for entertainment only) or Sweeps Coins (redeemable for prizes). Because no purchase is required to play, these platforms argue they operate as promotional sweepstakes rather than traditional offerings requiring state licensing.
Can I still play if my state is 'Under Scrutiny'?
States labeled 'Under Scrutiny' (Illinois, Pennsylvania, Tennessee) have active enforcement actions or pending legislation. While some platforms may still be technically accessible, regulators have issued cease-and-desist orders and access could be revoked at any time. Check each state page for the latest details.
Last verified: March 23, 2026. Information is updated as new legislation passes or enforcement actions are taken. Check individual state pages for the most recent details.