Sweepstakes Casino Laws Explained
The best sweepstakes casinos allow you to play a wide range of high-quality slots, table games, video poker titles, and live dealer games. They are popular in states that have not yet legalized traditional online casinos, such as California, Texas, Florida, and New York.
This page breaks down the laws that sweepstakes casinos must comply with. We will explain why they are able to accept players in more than 40 states, and we will also discuss why players can redeem cash prizes and gift cards at these sites.
Legal overview of sweepstakes casinos
Sweepstakes casinos look similar to traditional online casinos, but they do not allow you to play games with real money.
Definition and legal basis
You can use two currencies while playing. These are generally divided by sweepstakes coin play:
- Gold Coins: These coins are solely designed for entertainment purposes. They have no monetary value, and you cannot redeem them for prizes.
- Sweeps Coins: You can redeem these premium coins for cash prizes or gift cards if you win.
When you play with Sweeps Coins, you are participating in legal sweepstakes, which have been rendered in the form of slots and table games. Other examples of legal sweepstakes include the McDonald’s Monopoly game and the Kellogg’s Salute to the Military Sweepstakes.
Federal and state regulations
Sweepstakes casinos must comply with various federal regulations, such as the Fair Credit Billing Act and the Telephone Consumer Protection Act. These laws are designed to protect consumers.
Social casinos and sweepstakes casinos must also adhere to local sweepstakes and prize promotion regulations in each state in which they operate. For example, these sites must comply with Section 849.094 of the Florida Statutes, Title 13 of the Texas Business and Commerce Code, Chapter 5 of the Missouri Code of State Regulations, and so on.
The regulations in each state are worded differently, but the upshot is always similar: to run a legal sweepstakes, the site must eliminate one of these three lottery elements:
- Prize
- Consideration
- Chance
To comply with the law, all new sweepstakes casinos remove the element of consideration from their sites. That means you cannot buy Sweeps Coins. You can only receive them for free via bonuses, as a free gift when you buy Gold Coins, or by writing to the site owner and asking for Sweeps Coins to be credited to your account.
They must also focus on games of chance, such as slots or roulette, as opposed to games of skill. That allows them to offer similar games to traditional online casinos. Players also need to be 18 or older to play at sweepstakes casinos.
State-specific sweepstakes casino regulations
Social and sweepstakes casinos are legally available in most states, but there are a few exceptions.
Most sweepstakes casinos accept players in every state except for Idaho, Michigan, Nevada, and Washington State.
Local regulators in certain states have taken steps to prohibit sweepstakes play at sites like WOW Vegas and High 5 Casino. For example, the Michigan Gaming Control Board declared that the sites are operating “unlicensed online lotteries and/or raffles,” and it issued cease-and-desist letters. Similar steps were taken in Idaho, Nevada, and Washington.
Compliance and player safety
Sweepstakes casinos are required to offer players a safe, fair online gaming experience, focusing on these three areas:
Age and verification requirements
Players must be 18 or older at social and sweepstakes casinos. You must also complete a Know Your Customer (KYC) process before you can redeem prizes, which requires you to upload a valid, government-issued photo ID, such as your driver’s licenses, plus proof of address and a selfie in order to verify your account.
Consumer protections
Sweepstakes casinos must comply with federal and state consumer protection regulations. As they adhere to US law, you will have legal recourse if you feel you have been mistreated at a sweepstakes casino.
Data privacy and security
The leading social and sweepstakes casinos implement comprehensive data protection policies, which are clearly displayed on their sites. They use the latest encryption tools to protect your data, and they also use strong firewalls and other security measures to prevent unauthorized access.
Navigating sweepstakes casino participation
Follow the advice below to ensure you stay safe at sweepstakes casinos.
How to participate legally
Check the site’s sweepstakes rules and its terms and conditions before signing up and claiming your sweeps no deposit bonuses. Make sure the site is available in your state and check the minimum age.
Stick to trusted, reputable sites. For example, High 5 Casino and WOW Vegas both have long track records of complying with regulations, treating players fairly, and providing secure payments.
Familiarize yourself with the Gold Coins vs. Sweeps Coins differences. Check how many times you must play the Sweeps Coins through before you can redeem them for cash prizes at a particular site.
Most sites impose a simple 1x playthrough requirement, but a couple of sweepstakes casinos impose a 3x playthrough requirement. The minimum cash prize redemption also varies, so check the FAQ for details. If anything is unclear, ask the customer service team for assistance.
Potential legal changes
The legal landscape is always shifting, so it is important to stay on top of any changes. For example, Michigan began issuing cease-and-desist letters to sweepstakes casinos in 2024, and most of them quickly left the Great Lakes State.
States like Kentucky and Montana have started to scrutinize these sites, and some no longer accept players in those states. We will keep readers updated with any legal developments in the future.
Legal sweepstakes casinos
FAQs
Sweepstakes casinos and real money online casinos offer similar games, but they operate under very different legal frameworks. Players can deposit funds, play games in US dollars, and withdraw their winnings at real money online casinos. However, those sites have only been legalized in seven states, as explained in our sweepstakes vs. online casinos guide.
Meanwhile, sweepstakes casinos do not offer real money play. You can play their games for fun, or you can use Sweeps Coins, which are redeemable for cash prizes if you win. These sites are available in more than 40 states, and they comply with federal laws and local sweepstakes regulations in each state they operate in.
A sweepstakes casino is legally compliant if it only accepts players aged 18 or older, does not offer real money play, does not allow you to purchase Sweeps Coins, and only offers games of chance. Legally compliant social and sweepstakes casinos include WOW Vegas, McLuck, High 5 Casino, and Pulsz.
You should start by complaining to the sweepstakes casino’s customer service department in writing. If the agents do not resolve your complaint satisfactorily, you can raise the issue with your state government and ask for help.
The government department that oversees sweepstakes and prize promotions will differ on a state-by-state basis. Identify the relevant department in your state and file a complaint about the sweepstakes casino, along with evidence of the complaint you filed to the site’s customer service team.
Sweepstakes casinos must comply with local prize promotion regulations in each state they operate in. If you feel they are in breach of those regulations, or you have been treated unfairly, the local regulator may be able to intervene on your behalf.
Some sweepstakes casinos offer native apps, which you can download via the App Store or Google Play. The best social and sweepstakes casino apps are High 5 Casino, McLuck, and Pulsz. Other social and sweepstakes casinos do not have native apps, so you must visit their mobile sites instead when playing on your iOS or Android device.
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