Between 2019 and 2023, mobile gaming in the U.S. grew rapidly due to coronavirus lockdowns. States like Michigan, Pennsylvania, and West Virginia launched real money online casinos during this time.
To address slow online gambling laws, gaming companies introduced sweepstakes casinos. These casinos let players enjoy games without needing state licenses.
What Are Sweepstakes Casinos?
A sweepstakes casino combines traditional casino games with sweepstakes-style promotions. It offers an alternative to real-money casinos, especially in places where real-money gambling isn’t allowed. Players can enjoy their favorite games for free and have a chance to win prizes like gift cards or cash.
So, how is this legal? Sweepstakes casinos use sweepstakes laws to let players redeem virtual coins for prizes. This means you’re not playing with real money, but you can still win rewards. The use of virtual coins is what sets sweepstakes casinos apart from regular online casinos.
How Sweepstakes Casinos Differ from Traditional Online Casinos
There are good reasons to choose a sweepstakes site over a traditional online casino, but how do they compare? Which is better?
Key Difference: Legality
The main difference is legality. If you live in a state where traditional casinos aren’t allowed, but sweepstakes are, your only option for a casino-like experience is the sweepstakes site.
When Both Are Legal
The real choice comes when both options are legal. Which should you pick? With both, you’re spending real money by gambling or buying tokens on a sweepstakes site. Regular casinos might be simpler since you’re betting money directly, without worrying about the value of tokens or redemption rules.
Bonuses and Promotions
Sweepstakes sites often offer bonuses, but always read the terms carefully. Check how often you need to use your bonus tokens before cashing out. Traditional casinos also have bonuses; one isn’t necessarily better than the other—it depends on the offer.
Final Thoughts
There’s no clear answer on which option is better—it depends on your preference. Choose the one that’s more enjoyable for you. If only one option is legal, go with that. Ultimately, legality is often the deciding factor when choosing a sweepstakes casino.
How Sweepstakes Casinos Differ from Social Online Casinos
Telling sweepstakes and social casinos apart can be tricky, and many people get confused. Both offer fun casino-style games without real-money gambling, but their rewards and legal rules create different player experiences. Here are some things to consider when comparing sweepstakes and social casinos:
Legal Status
The main difference between sweepstakes and social casinos is their legal status. Sweepstakes casinos operate under sweepstakes laws, allowing them to offer real prizes without being classified as gambling. Social casinos are for entertainment only, with no real-money gambling, making them accessible where gambling is restricted.
Game Mechanics and Currency
Sweepstakes casinos use two types of coins: Gold Coins for fun and Sweeps Coins for chances to win real prizes. Social casinos use one virtual currency, which can be bought or earned, only for gameplay with no real prizes.
Player Experience and Rewards
Sweepstakes casinos enhance gameplay by offering the chance to win prizes using Sweepstakes Coins. Social casinos focus on enjoying the game and offer virtual rewards like achievements or leaderboard positions.
Revenue Models
Sweepstakes casinos make money by selling gold coins, which often include bonus Sweeps Coins. Social casinos earn revenue through in-app coins or purchases of virtual items, focusing on fun rather than the chance to win money.
Target Audience
Sweepstakes casinos attract players looking to win prizes. Social casinos appeal to those who enjoy casino games for fun and social interaction without gambling for money.
How Are Sweepstakes Casinos Are Legal in Most States?
Sweepstakes casinos can operate where real-money gambling is illegal because they follow sweepstakes laws, which are legal in most U.S. states and Canadian provinces.
For gambling to be illegal, there must be cash entry, chance, and a prize. Sweepstakes casinos avoid cash entry by using virtual currencies instead, so they are legal.
They use Gold Coins for fun and Sweeps Coins for cash prizes. Players can’t buy extra Sweeps Coins, and entry is always free. Instead, they can earn Sweeps Coins through bonuses, rewards, mail-in requests, social media giveaways, and leaderboards.
Where Are Sweepstakes Casinos Legal?
If you’re unsure if sweepstakes casinos are allowed in your state, check out our chart for more details.
| State | Legal? |
| Alabama | Yes |
| Alaska | Yes |
| Arizona | Yes |
| Arkansas | Yes |
| California | Yes |
| Colorado | Yes |
| Connecticut | Yes |
| Delaware | Yes |
| Florida | Yes |
| Georgia | Yes |
| Hawaii | Yes |
| Idaho | No Sweepstakes Coins, only Gold Coin play |
| Illinois | Yes |
| Indiana | Yes |
| Iowa | Yes |
| Kansas | Yes |
| Kentucky | Yes |
| Louisiana | Yes |
| Maine | Yes |
| Maryland | Yes |
| Massachusetts | Yes |
| Michigan | No |
| Minnesota | Yes |
| Mississippi | Yes |
| Missouri | Yes |
| Montana | Yes |
| Nebraska | Yes |
| Nevada | Yes |
| New Hampshire | Yes |
| New Jersey | Yes |
| New Mexico | Yes |
| New York | Yes |
| North Carolina | Yes |
| North Dakota | Yes |
| Ohio | Yes |
| Oklahoma | Yes |
| Oregon | Yes |
| Pennsylvania | Yes |
| Rhode Island | Yes |
| South Carolina | Yes |
| South Dakota | Yes |
| Tennessee | Yes |
| Texas | Yes |
| Utah | Yes |
| Vermont | Yes |
| Virginia | Yes |
| Washington | No |
| West Virginia | Yes |
| Wisconsin | Yes |
| Wyoming | Yes |
Good to Know:
- In Idaho, you can play for fun with Gold Coins, but you can’t use Sweeps Coins for Promotional Play or cash prize redemptions. Most popular sweepstakes sites don’t operate in the state.
- In Michigan, sweepstakes casinos are technically legal, but the Michigan Gaming Control Board considers them illegal and has begun sending cease-and-desist letters. Most operators are expected to leave the state soon.
- Sweepstakes casinos are legal in Nevada, but many sites choose not to operate there.
History and Evolution of Sweepstakes Casinos
Sweepstakes casinos are popular in the U.S. because they offer free gaming with virtual coins from no deposit bonuses. The rise of these casinos has a history worth exploring.
Origin of Sweepstakes Casinos
In the early 2000s, online gaming began, and early platforms were general casino sites offering games like slots and poker but no real prizes. The growth of sweepstakes casinos is linked to social media, especially Facebook. Zynga’s launch of Texas Hold’em Poker on Facebook in 2006-2007 was a key moment, making Zynga Poker a pioneer in the space.
Impact of Mobile Gaming
By the early 2010s, mobile gaming became popular, shifting players from desktops to mobile apps for a better experience. The 2012 acquisition of DoubleDown Casino by International Game Technology (IGT) for $500 million highlighted the potential of social gaming apps and marked a market shift.
Game Variety Evolution
Initially, sweepstakes casinos focused mainly on slots. Over time, they expanded to include games like blackjack, roulette, and bingo. Today, many offer live dealer games with improved graphics and variety.
Growth During the COVID-19 Pandemic
In 2020, the COVID-19 pandemic led to widespread lockdowns, driving many to sweepstakes casinos for free gaming options. This period saw a surge in new sweepstakes sites with diverse game offerings, with many top U.S. sites launched in the past five years.
Pros & Cons of Sweepstakes Casinos
Is playing at sweepstakes casinos worth it? It depends on what you want from a gaming platform, which games you enjoy, and where you live. To help you decide, here are some pros and cons of sweeps casinos.
| Pros | Cons |
| Legal Accessibility: Social casinos can operate in many states where traditional online gambling is not. Their promotional nature lets them follow strict gambling laws, making them available to more players. | Limited Withdrawal Options: Certain methods, like specific e-wallets or bank transfers, may be the only way to cash out sweep coin winnings. This can be inconvenient for players who prefer other withdrawal options. |
| Real Cash Prizes: Players can win real money through sweepstakes using Sweeps Coins, adding excitement to the gaming experience. | Regulatory Changes: The legal status of sweeps casinos can change over time. New state or federal regulations might affect how these platforms operate, creating uncertainty for players. |
| Variety of Games: Similar to traditional online casinos, social casinos offer various games. Players can enjoy slots, table games, and more, providing diverse entertainment. | |
| No Purchase Necessary: Many platforms allow free play, so players can enter sweepstakes without spending money. This makes it easy to participate and win without financial risk. |
