Sweepstakes casinos vs. licensed online casinos

Licensed real-money online casinos are legal in 7 states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia. Sweepstakes casinos, which use two kinds of virtual coins to argue they are not gambling, operate in many other states, but 16 states have banned them and their status is disputed in 20 more.

How they differ

Licensed online casinoSweepstakes casino
Legal basisLicensed under a state law that authorizes online casino gamblingOperates without a gambling license, relying on sweepstakes and promotion law
What you play withReal money, deposited and withdrawnTwo currencies: coins bought for free play, and prize coins given away that can be redeemed for cash
WhereOnly inside a state that licenses it, checked by geolocationMost states, except where banned or where the site chooses not to operate
RegulatorState gaming regulator licenses the operator and tests the gamesNo state gaming regulator, except where a ban is enforced
TaxesPays a state gaming tax on revenueNo state gaming tax
Player protectionsState rules on age checks, deposit limits and self-exclusionSet by each site; not covered by state self-exclusion programs
Getting paidWithdraw winnings from your account balanceRedeem prize coins after identity checks and any play-through rules the site sets

How the sweepstakes model works

Players buy packs of one currency, usually called gold coins, which have no cash value. The packs come with a bonus of a second currency, often called sweeps coins, which can also be had free through daily log-in bonuses or a mailed request. Sweeps coins played on casino-style games can be redeemed for cash or gift cards.

The legal argument rests on that free route: a sweepstakes is legal in most states if no purchase is necessary to enter. States that ban sweepstakes casinos say the free route is a formality and the games are online gambling without a license. Licensed online casinos and tribes have pushed for the bans.

Where sweepstakes casinos are banned

LimitedContestedProhibitedNot authorized
Alaska: Not authorizedAKMaine: ProhibitedMEVermont: Not authorizedVTNew Hampshire: Not authorizedNHWashington: ContestedWAIdaho: Not authorizedIDMontana: ProhibitedMTNorth Dakota: Not authorizedNDMinnesota: Not authorizedMNWisconsin: ContestedWIMichigan: ProhibitedMINew York: ProhibitedNYMassachusetts: LimitedMARhode Island: Not authorizedRIOregon: ContestedORNevada: ContestedNVWyoming: ProhibitedWYSouth Dakota: ContestedSDIowa: ContestedIAIllinois: ContestedILIndiana: ProhibitedINOhio: ContestedOHPennsylvania: ContestedPANew Jersey: ProhibitedNJConnecticut: ProhibitedCTCalifornia: ProhibitedCAUtah: ProhibitedUTColorado: LimitedCONebraska: Not authorizedNEMissouri: ContestedMOKentucky: ContestedKYWest Virginia: ProhibitedWVVirginia: ContestedVAMaryland: ContestedMDDelaware: ProhibitedDEArizona: ContestedAZNew Mexico: ContestedNMKansas: Not authorizedKSArkansas: Not authorizedARTennessee: ProhibitedTNNorth Carolina: ProhibitedNCSouth Carolina: ContestedSCDistrict of Columbia: Not authorizedDCOklahoma: Not authorizedOKLouisiana: ProhibitedLAMississippi: ContestedMSAlabama: Not authorizedALGeorgia: ContestedGAHawaii: ProhibitedHITexas: ContestedTXFlorida: ContestedFL
StateBanned since
MaineJul 29, 2026
IndianaJul 1, 2026
TennesseeMay 22, 2026
CaliforniaJan 1, 2026
New YorkDec 5, 2025
ConnecticutOct 1, 2025
MontanaOct 1, 2025
New JerseyAug 15, 2025
UtahMay 7, 2025
MichiganJan 2024
Delaware
Hawaii
Louisiana
North Carolina
West Virginia
Wyoming

Sweepstakes casino status in every state →

Where online casinos are licensed

LiveLegal, not launchedProhibitedNot authorized
Alaska: Not authorizedAKMaine: Legal, not launchedMEVermont: Not authorizedVTNew Hampshire: Not authorizedNHWashington: ProhibitedWAIdaho: ProhibitedIDMontana: ProhibitedMTNorth Dakota: Not authorizedNDMinnesota: Not authorizedMNWisconsin: Not authorizedWIMichigan: LiveMINew York: Not authorizedNYMassachusetts: Not authorizedMARhode Island: LiveRIOregon: Not authorizedORNevada: Not authorizedNVWyoming: ProhibitedWYSouth Dakota: Not authorizedSDIowa: Not authorizedIAIllinois: Not authorizedILIndiana: Not authorizedINOhio: Not authorizedOHPennsylvania: LivePANew Jersey: LiveNJConnecticut: LiveCTCalifornia: Not authorizedCAUtah: ProhibitedUTColorado: Not authorizedCONebraska: Not authorizedNEMissouri: Not authorizedMOKentucky: Not authorizedKYWest Virginia: LiveWVVirginia: Not authorizedVAMaryland: Not authorizedMDDelaware: LiveDEArizona: Not authorizedAZNew Mexico: Not authorizedNMKansas: Not authorizedKSArkansas: Not authorizedARTennessee: Not authorizedTNNorth Carolina: Not authorizedNCSouth Carolina: Not authorizedSCDistrict of Columbia: Not authorizedDCOklahoma: Not authorizedOKLouisiana: ProhibitedLAMississippi: Not authorizedMSAlabama: Not authorizedALGeorgia: Not authorizedGAHawaii: ProhibitedHITexas: Not authorizedTXFlorida: Not authorizedFL

Online casino status, launch dates and tax rates →

Questions

Are sweepstakes casinos legal?

It depends on the state. 16 states have banned them by law or regulator action (California, Connecticut, Delaware, Hawaii, Indiana, Louisiana, Maine, Michigan, Montana, New Jersey, New York, North Carolina, Tennessee, Utah, West Virginia and Wyoming). In most other states no law addresses them directly, and regulators and courts disagree on whether the two-currency model is gambling.

What is the difference between a sweepstakes casino and an online casino?

A licensed online casino takes real-money bets under a state license and pays state gaming tax. A sweepstakes casino sells coins for free play and gives away a second currency that can be redeemed for prizes, and claims that because no purchase is needed to get prize coins, it is a legal sweepstakes rather than gambling.