Are Sweepstakes Casinos Legal? State-by-State Guide (2026)

Here's the thing most people don't realize: sweepstakes aren't some legal gray area or loophole. They're a well-established promotional model that's been used in the United States for decades. Think about McDonald's Monopoly, Publishers Clearing House, or Coca-Cola's bottle cap contests. Sweepstakes casinos apply that same legal framework to online gaming.

Federal law distinguishes between gambling and sweepstakes based on three elements. For something to be classified as illegal gambling, it generally needs all three: consideration (you pay money), chance (outcomes are random), and a prize (you can win something). Remove any one of those elements, and it's not gambling under most legal definitions.

Sweepstakes casinos remove the consideration element. Yes, you can buy Gold Coin packages—but that's a purchase of virtual entertainment currency, not a wager. The Sweeps Coins you receive alongside those Gold Coins are classified as a promotional bonus, and they're also available through free alternatives like daily login bonuses and mail-in requests.

This isn't a new legal theory. The FTC has recognized promotional sweepstakes for years, and states have their own sweepstakes laws that largely align with the federal framework. Where things differ is in how individual states interpret and regulate these promotions, which is why we need to look at this state by state.

Let me break down the actual mechanics, because this is where most of the confusion happens. Sweepstakes casinos use two separate currencies, and understanding the difference between them is key to understanding why the whole thing is legal.

When you "buy" a package at a sweepstakes casino—say, 10,000 Gold Coins for $9.99—you're technically purchasing entertainment tokens. The 3 Sweeps Coins included in that package are a free promotional gift. This distinction matters enormously from a legal standpoint. You didn't pay for the Sweeps Coins. You paid for Gold Coins and got Sweeps Coins as a bonus.

The free entry requirement is non-negotiable. Every legitimate sweepstakes casino must offer ways to earn Sweeps Coins without spending a dime. At Chumba Casino, for example, you get free Sweeps Coins just by logging in daily. Pulsz does the same, plus they run social media giveaways. Some platforms also accept mail-in requests—you literally send a letter to get free coins.

This free entry mechanism is what separates sweepstakes casinos from illegal online gambling. Without it, the model collapses. If a site claims to be a sweepstakes casino but doesn't offer any free entry method, that's a major red flag, and they're likely operating outside the law.

The good news for most Americans: you can almost certainly play. Sweepstakes casinos are available in 48 states, and the experience is essentially the same regardless of where you live. Here's how the states break down.

States With Traditional Online Gambling Too

Some states have legalized traditional real-money online casinos: New Jersey, Pennsylvania, Michigan, West Virginia, Connecticut, and Delaware. If you live in one of these states, you can play both sweepstakes casinos and regulated real-money casinos. We cover the differences in our sweepstakes vs real money casino guide.

For the other 42 states where traditional online gambling is prohibited, sweepstakes casinos are the primary way to play casino-style games online for real prizes. That's exactly why they've become so popular—they fill a gap that millions of players were waiting for.

If you live in Washington or Idaho, I'd recommend checking back periodically. Laws can change, and some platforms have legal teams working on finding compliant ways to serve these states. In the meantime, our state-specific guides will keep you updated on any changes.

Not every sweepstakes casino operates in every eligible state. Even within the 48 states where the model is legal, individual platforms make their own decisions about where to offer service. Here's what I've found across the major platforms:

I always recommend signing up at the casino's website rather than through third-party links you don't trust. Legitimate sweepstakes casinos will verify your location through geolocation when you create an account—if you're in an eligible state, you'll be approved. If not, they'll tell you upfront.

The legal environment for sweepstakes casinos isn't static. There are a few things I'm watching that could affect the industry in the coming years.

First, more states are considering specific sweepstakes casino regulation. Rather than banning the model, some legislators want to create a licensing framework similar to what exists for traditional online gambling. This would actually be good news for players—it means more consumer protections and oversight without eliminating access.

Second, the Washington state legislature has had preliminary discussions about modernizing their gaming laws. Nothing has passed yet, but there's growing recognition that the current blanket prohibition is outdated. If Washington opens up, it would likely bring Idaho into the conversation as well.

Third, some states with newly legalized real-money online gambling have questioned whether sweepstakes casinos should coexist alongside regulated operators. So far, no state has moved to ban sweepstakes casinos after legalizing traditional online gambling—they've existed side by side in New Jersey, Pennsylvania, and Michigan without issue.

My honest take? Sweepstakes casinos aren't going anywhere. The legal foundation is solid, and the model has survived over a decade of operation without any successful legal challenge shutting it down. If anything, I expect the market to grow and become more regulated over time, which benefits everyone.