Sweepstakes Casino Sweepstakes Casino
A US-style online casino format that uses two virtual currencies: free coins and coins that can be exchanged for prizes. It has operated on the legal theory of prize promotions (sweepstakes), but in 2025 several states, including California and New York, banned it one after another.
| English | Sweepstakes Casino |
|---|---|
| Classification | Basics & Betting Terms |
| Category | iGaming industry term (business model) |
| Main market | United States |
| Currency structure | Gold Coins + Sweeps Coins (dual currency) |
| Legal basis claimed | No Purchase Necessary |
| Free entry method | AMOE (mail-in request, etc.) |
| States with 2025 bans | Connecticut, Montana, New Jersey, California, New York |
Overview
A sweepstakes casino is a type of online casino that started in the US, where you play slots and casino games with two kinds of virtual coins instead of real money. “Sweepstakes” refers to a prize drawing event in English. Operators have long claimed they are not gambling but free game services with a prize promotion attached, which is how they have operated even in states where online casinos are not legal.
Two types of coins
| Category | Gold Coins | Sweeps Coins |
|---|---|---|
| Purpose | For play-for-fun games only | For entering prize promotions |
| Purchase | Can be bought in bundles (optional) | Cannot be bought directly, only received for free |
| How to get them | Purchase, promotions | Promotions, mail-in requests, game wins |
| Redemption | No | Can be exchanged for prizes such as cash or gift cards (identity verification required) |
This dual-currency structure is the core of a sweepstakes casino.
What legal theory they rely on
In the US, an activity is generally treated as gambling when it has all three elements: prize, chance, and consideration (payment). Sweepstakes casinos advertise “No Purchase Necessary” and argue that the consideration element is missing. That is why they always provide an alternative method of entry (AMOE) for getting Sweeps Coins without spending money, and the typical example is sending in a handwritten mail-in request to receive a small amount of coins.
Regulators and lawmakers view this structure as de facto online gambling that exploits a loophole in the law.
State-by-state bans in the US
| State | Details |
|---|---|
| Washington, Idaho | Banned since before 2025 |
| Connecticut | Bill signed in June 2025, effective October 1 |
| Montana | Effective from October 1, 2025 |
| New Jersey | Signed in August 2025, effective immediately |
| California | AB 831 signed on October 11, 2025, effective January 1, 2026. Penalties also apply to payment and location verification vendors and to affiliate marketing |
| New York | Signed on December 5, 2025, effective immediately |
In Louisiana, a 2025 ban bill failed after a governor’s veto, but regulators have sent more than 40 cease-and-desist orders. For rules in states that have licensed regular online casinos, see pages such as New Jersey DGE and Michigan MGCB. It is also good to remember that pure demo games with no money involved are different in nature from free slots.