Where are Sweepstakes Casinos Legal? A State-By-State Guide

As the legislative battles are being fought in most US states, sweepstakes casinos are still legal in the vast majority of US states. The only states where they are explicitly banned are Washington, Michigan, Connecticut, New Jersey, Nevada, and Montana, while players in Idaho can’t win cash prizes.

Here is a detailed breakdown of the sweepstakes casino legality in the US.

What States Allow Sweepstakes Casinos?

Each state has its own set of laws when it comes to regulating sweepstakes casinos. Some allow all forms of this type of gaming, some have partial availability and some have banned them. Here is a complete list of US states and their stance regarding sweepstakes casinos. And if you want to find out which sweepstakes casinos are legal in which state you can check out our full list of sweepstakes casinos in US.

*States Availability

• Full - states where all major operators are available

• Partial - States where some operators have chosen to restrict service (reasons for limited availability include - ongoing legal challenges, similar restrictive state gaming laws and proximity to regulated online gambling markets)

• Restricted - states where sweepstakes casinos are explicitly prohibited

States That Introduced Anti‑Sweepstakes Bills in 2025

Breakdown of Bills by State

1. Montana – SB 555

• Passed both chambers and signed by Gov. Gianforte. It amends gambling statutes to include online sweepstakes as felony-level offenses and goes into effect by October 1, 2025

2. Connecticut – SB 1235

• Approved unanimously by both House and Senate. Signed by Gov. Lamont. Criminalizes sweepstakes casino use of simulated gambling ›­– Class A misdemeanor

3. Louisiana – SB 181

• Senate passed it 39–0. Expands the definition of “gambling by computer” to include dual‑currency sweepstakes. Bill vetoed on Jun 12 by the Gov. Jeff Landry stating: "This bill attempts to criminalise certain secondary gambling activities on the internet that are already prohibited in Louisiana,"

4. New York – SB 5935 / AB 6745

• The bills are now back in the Senate awaiting final approval before being sent to the Governor. If signed, they would prohibit dual‑currency sweepstakes under Racing & Pari‑Mutuel law.

5. New Jersey – A 5447

• Signed into law by Gov. Phil Murphy. The NJ bill outlaws sweepstakes casinos and proxy betting with fines up to $250,000.

6. Ohio – HB 298

• Introduced May 20. Proposes to prohibit online sweepstakes games by explicitly targeting dual‑currency systems

7. Massachusetts - H4431

• H4431 aims to legalize iGaming, to be regulated via MGC in addition, H4431 would also ban unregulated online sweeps casinos

9.California AB831

• California legislators introduced a bill on June 20 that aims to ban all operations and promotion of sweepstakes casino platforms. The bill , which is backed by tribal gaming interests in California, has advanced to the Senate Appropriations Committee.

8.Additional States with anti-sweepstakes bills Introduced

• Mississippi (SB 2150), Maryland (SB 0860), Arkansas (SB 5240), Florida (HB 1467 & SB 1404), and Texas (SB 517).

• Florida, Maryland, Mississippi, and Texas: Bills failed to pass before legislative deadlines. Arkansas bill was withdrawn and referred for study

US States That Did not Pass Bills Regulating Sweepstakes 

These states may revisit the topic in future sessions, but as of now, sweepstakes casino platforms continue to operate in legal gray areas within these jurisdictions.

Breakdown of Bills by State

1. Florida

• Bills Introduced: HB 1467 & SB 1404

• Details: Aimed to ban sweepstakes casinos using dual-currency systems. Neither bill advanced past the committee stage before the Florida legislative session ended.

2. Texas

• Bill Introduced: SB 517

• Details: Intended to include dual-currency sweepstakes in the definition of illegal gambling. The bill stalled in committee and died when the session concluded.

3. Maryland

• Bill Introduced: SB 860

• Details: Sought to classify online sweepstakes operations as illegal gambling. The bill failed to gather momentum and was not brought to a vote.

4. Mississippi

• Bill Introduced: SB 2150

• Details: Focused on extending existing gambling laws to cover sweepstakes platforms. The bill failed to advance after the committee review.

5. Arkansas

• Bill Introduced: SB 5240

• Details: The bill was introduced to restrict sweepstakes casinos but was voluntarily withdrawn and referred for further study instead of moving forward.

Online Casinos vs Sweepstakes Availability in the US

Legal Framework and Regulation

Online casinos operate with real-money wagering and are subject to state-level gambling regulations. As of 2025, real-money online casinos are only legal in a handful of states including New Jersey, Pennsylvania, Michigan, West Virginia, Connecticut, and Delaware. These states have strict regulatory bodies that license operators, monitor fair play, and enforce responsible gaming laws. Each state's market is fenced, meaning you must be physically located within the state to legally access these platforms.

In contrast, sweepstakes casinos use a dual-currency model—typically Gold Coins (GC) for free play and Sweeps Coins (SC) for potential redemption of cash prizes. They operate under a legal loophole using sweepstakes law, making them available in nearly every US state except Washington and Idaho. This model allows users to play games without making a purchase, although optional coin packages are available. Because they are not classified as traditional gambling, they bypass the need for state gambling licenses, though operators must still comply with sweepstakes regulations at both state and federal levels.

Accessibility and Player Reach

Real-money online casinos are highly restricted in terms of availability. Only residents and visitors physically located within legal states can access these platforms. Players must go through KYC (Know Your Customer) processes and use geolocation technology to confirm eligibility. This significantly limits their reach across the US.

Sweepstakes casinos, on the other hand, enjoy nationwide reach. Because they don’t require real-money gambling deposits and comply with sweepstakes laws, users from most states can participate. This makes them especially popular in regions where traditional gambling is banned or unregulated. For players in states like Texas, Florida, and California, sweepstakes casinos often serve as the only legal alternative to real-money online casinos.

Game Variety and Experience

Online casinos usually offer a richer selection of games, including hundreds or thousands of real-money slots, table games, and live dealer options powered by major software providers. These platforms mirror the experience of a physical casino, complete with VIP programs, progressive jackpots, and sports betting integrations.

Sweepstakes casinos also feature a wide array of games, though often fewer in number and less graphically advanced. Some sweepstakes platforms partner with top providers like Pragmatic Play or Betsoft, but many use proprietary or simplified versions of slots, keno, and fish games. While the play-for-fun model is engaging, the lack of high-stakes gaming and real-money immediacy limits the thrill for some users.

Payment Methods and Prize Redemption

Banking options for online casinos, are robust, including ACH, online banking, debit/credit cards, e-wallets, and while crypto isn't a acceptable in online casinos there are some sweepstakes crypto casinos that have filled this void. Payout speeds are fast and heavily regulated. Real-money deposits are required to play, and withdrawals follow strict anti-money laundering protocols.

Sweepstakes casinos use a two-currency system. Players earn or purchase Gold Coins for standard play and Sweeps Coins for redeemable rewards. Redemptions are typically processed via online banking, debit card, or gift cards, with players required to reach a minimum amount of eligible SC (usually 50–100 SC) and complete identity verification. Since SC are awarded as part of a promotional sweepstakes system, all redemptions are technically classified as prize winnings rather than gambling proceeds.