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Sweepstakes Casinos: An Overview

Level: Intermediate
Updated: Mar 28, 2025
3 min read

Key Takeaways
  • Availble in more jurisdictions than regulated casinos
  • Provides less player protections than regulated casinos

Sweepstakes casinos offer an alternative approach to online gaming, utilizing sweepstakes laws to legally operate in jurisdictions that restrict traditional online gambling. Instead of directly wagering cash, users purchase virtual currency, often referred to as "Gold Coins" (GC), which have no direct monetary value but come bundled with "Sweeps Coins" (SC). These SC can then be used in various casino-style games, providing players the opportunity to win cash prizes that can be redeemed. Many of the sweepstakes casinos have sign-up offers as well as daily recurring offers that are profitable when played properly. Learn more about the differences between regulated and sweepstakes platforms in our Regulation Types guide.

Where Can I Play Sweepstakes Casinos

Most states allow sweepstakes casinos, but regulations are changing quickly. Idaho, Michigan, and Washington are the states that prevent sweepstakes casinos.

Age Restrictions for Sweepstakes Casinos

Most sweepstakes casinos are 18+, but a few are 21+.

How Much Can I Make From Sweepstakes Casinos

Sign-up offers vary from ~$100 in profit to ~$20. To see how much you can make, check out our State Guides.

Where Can I Learn More About Sweepstakes Casinos

Join our Discord server and check out the #casino channel.

Sweepstakes Casino Risks

Legal and Regulatory Risks

  • Unclear Legal Status: Sweepstakes casinos operate in legal gray areas. While generally legal under U.S. sweepstakes laws, interpretations vary state by state, potentially exposing users to unforeseen legal implications. It is currently a fluid legal landscape with new laws and regulations being proposed.
  • Sudden Closure: Regulatory crackdowns or legal challenges may lead these platforms to abruptly cease operations, risking players' accumulated winnings or purchased sweeps currency.

Financial Risks

  • Withdrawal Difficulties: Many sweepstakes casinos require lengthy verification procedures for withdrawals. Delays, strict terms, or denied withdrawals could result in funds becoming inaccessible.
  • Currency Conversion Issues: Sweepstakes platforms often use virtual currencies (Gold Coins, Sweeps Coins) that aren't directly exchangeable for cash. Players must rely on the operator's goodwill and efficiency to exchange virtual currency for real money, adding risk to their investment.

Lack of Regulation and Oversight

  • Limited Player Protection: Since sweepstakes casinos aren't regulated like traditional online casinos, users have fewer protections regarding fair play, dispute resolution, and secure handling of personal and financial information.
  • Unverified Return To Player Percentages: Without oversight by recognized gambling regulators, there’s no guaranteed fairness. A game's claimed Return To Player (RTP) may not be accurate. Players rely entirely on the platform’s claims without independent audits or checks.

How to Mitigate These Risks

  • Research and choose reputable platforms with strong user reviews and established histories.
  • Read the Terms and Conditions carefully to understand the conversion of virtual currencies to cash and withdrawal limitations.
  • Verify identity and payment processes early to prevent withdrawal issues later.
  • Set clear limits for time and money spent to avoid problem gambling behavior.

1099s

  • Annual redemptions of over $600 may result in a 1099 from the sweepstakes casino based on total redemptions and not profit, potentially increasing your tax burden inaccurately.
  • Most sweepstakes casinos claim to distribute a 1099 based on net profit, but this is not a guarnatee.
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