Illustration of casino chips and gold coins surrounding a gift box on a green and purple background, representing bonuses and rewards at sweepstakes casinos.

Sweepstakes casinos are now a big part of the online gaming landscape in the US, a legal way to play games you’d find in a casino. These platforms offer fun and the chance to cash out for real prizes, all while following US sweepstakes laws.

Key Beats

  • Sweepstakes casinos operate on a dual currency system, Gold Coins for fun play and Sweeps Coins for a chance to win.
  • They are available in most US states as they are sweepstakes, not gambling.
  • The “no purchase necessary” rule applies; you can get Sweeps Coins for free through bonuses, promotions, and mail-in requests.

What Are Sweepstakes Casinos?

Sweepstakes casinos are online platforms that let you play casino-style games using virtual currencies called Gold Coins and Sweeps Coins instead of real money. You can win prizes that can later be redeemed for cash. These legal online casino alternatives are permitted to operate under US sweepstakes laws rather than US gambling laws.

They also have many appealing elements. For some, they fill the gap in markets without regulated online gambling, a legal way to play at a casino. 

For others, they are a more casual, lower-risk form of entertainment. The appeal lies in their accessibility: you can play for free, redeem your winnings for real prizes, and access them across the country. This model has made them a favorite among many American players looking for fun and excitement from the comfort of their own homes.

How Sweepstakes Casinos Work

So sweepstakes casinos can seem a bit daunting at first, but it’s actually pretty simple once you understand the dual currency system they’re built on. This system is the basis of their legality and is designed to separate the act of playing from the act of wagering money. The two virtual currencies are called Gold Coins and Sweeps Coins.

Gold Coins (GC)

Think of Gold Coins as play-money tokens, as they’re for entertainment purposes only. You use them to spin slots and play table games just for fun. 

Gold Coins have no cash value and can’t be redeemed for any prizes. You can get Gold Coins for free in several ways: they’re often awarded for signing up, daily login bonuses, and social media promotions. 

If you run out, you can buy Gold Coin packages to continue playing. These packages often come with a free bonus of the second currency type, Sweeps Coins.

Sweeps Coins (SC)

This is how you can win real prizes. Even though you cannot purchase Sweeps Coins, you can use them to play games. You can trade in any Sweeps Coins that you win for real-life cash and gift card prizes. 

Sweepstakes casinos typically allow players to play with free Sweeps Coins as a marketing tactic. The gist of how sweepstakes casinos work is that players always receive Sweeps Coins for free. There are three ways to get them:

This “no purchase necessary” clause is important because you can get Sweeps Coins and have a chance to win a prize without paying, which means the platform complies with US sweepstakes laws. The sweepstakes casino games themselves are often the same as those found at online casinos, featuring games from top software providers, so you get a high-quality gaming experience.

Infographic explaining the two-currency system used in sweepstakes casinos, comparing Gold Coins (GC) for fun play and Sweeps Coins (SC) for real prize redemption.

Legality and Availability in the USA

Players often ask, “Are sweepstakes casinos legal?” The answer is yes, in most of the US. The difference between sweepstakes and gambling is a fine line. 

Both federal and state laws have defined gambling as an activity that has three characteristics: pay to play, chance, and prizes. Sweepstakes casinos cleverly remove the consideration element. Since you can get Sweeps Coins for free and play the promotional games without making a purchase, it’s not considered gambling.

This legal framework allows them to operate in over 40 states, providing a legal gaming outlet for millions of Americans. But they’re not everywhere. 

Several states have made this kind of gaming illegal or heavily restricted it. For example, Washington state has a ban on internet sweepstakes gaming. Montana has an outright ban on sweepstakes casinos. On the other hand, you can play, but you can’t redeem prizes in Idaho. So always check the laws in your state.

The legal landscape is also changing. Some states are reconsidering their policy on sweepstakes gaming. Lawmakers in California are introducing bill AB831, which would see them banned. Meanwhile, North Carolina has legal challenges and discussions. 

To avoid legal issues, some operators have opted to pull out of some states. You must be aware of the laws applicable in your state for this reason.

Pros & Cons of Sweepstakes Casinos

Before you start playing at any of the sweepstakes casinos, it is a good idea to weigh their pros and cons. A balanced view will help you decide if this is for you. 

Pros

  • Positive icon

    Legal and convenient way to play casino games in many U.S. states where real-money gambling isn’t available.

  • Positive icon

    “No purchase necessary” model lets you play and win prizes without spending a dime.

  • Positive icon

    Sweeps Coin winnings can be redeemed for real cash or gift cards.

  • Positive icon

    Great for beginners to learn the rules of slots, blackjack, and other casino games risk-free.

Cons

  • Negative icon

    Prize verification and redemption can take longer than cashing out at regular online casinos.

  • Negative icon

    The virtual currency system may not feel as thrilling as wagering real money.

  • Negative icon

    While you can buy Gold Coins, you can’t purchase Sweeps Coins directly, which may frustrate some players.

Sweepstakes Casino Games Tips 

To help you get the most out of sweepstakes casino, consider these tips:

  • Maximize bonuses: Log in daily to get free bonuses. Stay in touch with your favorite casinos on social media and take part in contests and giveaways for extra coins.
  • Read the rules: Take time to read the terms and conditions. Look into the minimum needed to redeem the Sweeps Coins and the playthrough required.
  • Play responsibly: Although you can play for free, you can also buy Gold Coins. Set a budget for any purchases and stick to it. You may not be playing with real funds all the time but it’s still prudent to practice responsible play and set limits. 

Are Sweepstakes Casinos Right for You?

Sweepstakes casinos play a part in the US online gaming landscape. By using sweepstakes law, they offer a legal and accessible way for millions to enjoy casino-style gaming. The main difference between sweepstakes casinos and real money sites is the dual-currency system and the “no purchase necessary” principle, which removes financial risk from the core experience.

So are they for you? If you are a casual player looking for fun, risk-free entertainment, the answer is probably yes. They are also a good option if you live in a state where online casinos are not yet available, but you want to experience the thrill of slots and table games. 

FAQs

Are sweepstakes casinos legal in the USA?

Yes, sweepstakes casinos are legal in almost all US states. They are governed by sweepstakes laws, not by gambling laws. Washington, Michigan, and Montana are the only exceptions.

Can you win real money at sweepstakes casinos?

Although players may not win “real money” from the game, players can redeem their Sweeps Coins at a cash value for cash prizes or gift cards.

What are the best sweepstakes casinos online?

Many of the top-rated online sweepstakes casinos feature the most extensive game libraries, the easiest-to-use interfaces, and the fastest prize redemptions.

Do sweepstakes casinos require a deposit?

No, a big principle of a free sweepstakes casino is that no purchase or deposit is required to play or win prizes. You can collect free Sweeps Coins through bonuses and promotions.

Are sweepstakes casinos safe to play at?

That’s right, all legit sweepstakes casinos are entirely safe, even if they are new sweepstakes casinos. Stick with recognized brands that have a proven history of paying out prizes and have precise terms.

What games can you play at sweepstakes casinos?

You’ll find hundreds of slots alongside progressive jackpots, blackjack, roulette, and even sometimes live dealer games in a massive selection of sweepstakes casino games sites.

How do sweepstakes casinos differ from real money casinos?

The main difference is that all sweepstakes casinos use virtual currency and are legal in most states under sweepstakes law. Real money casinos use real cash and are only legal and regulated in a few states.

Angelique Visser
Angelique Visser

Angelique Visser is an iGaming veteran with over five years of writing experience for casino and sports betting sites. She is analytical yet also a storyteller, connecting with players and delivering top...