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Not sure which US states offer legal sweepstakes casinos? In this guide, we’ll break down the laws regarding sweepstakes casinos in the US, and how this differs in every state. We’ll also cover the difference in legality between real money casinos and sweepstakes casinos.
By the end of this guide, you’ll know where to access legal sweepstakes casinos. Spoiler alert: they’re available in the vast majority of the states.
Kindly note that we are not legal or tax experts. While we always strive to present the most accurate information, this is not binding legal advice. Always reach out to a licensed lawyer or tax advisor when in doubt.
A lot of sweepstakes casinos are being more cautious about which states to accept after a rise of lawsuits in different states. For instance, Jackpota and Mega Bonanza have recently added Pennsylvania, Delaware and New Jersey to their list of banned states. You can also see this pattern with new sweepstakes casinos. The new sweeps casino Jefebet has a very long list of restricted states: Connecticut, Delaware, Hawaii, Idaho, Kentucky, Louisiana, Michigan, Montana, Nevada, New Jersey, Washington. Another new casino with a considerable list of restricted states is Yay Casino, which restricts Washington, Idaho, New York, Nevada, Kentucky, Vermont, and Michigan.
10 companies announce their participation in the Social and Promotional Gaming Association (SPGA). The aim of the group is to give more visibility on the legitimacy of social sweepstakes games. This helps regulators and policymakers understand how these products work and how they comply with the required laws. The companies include Rolling Riches, High 5 Entertainment, Fliff, and Blazesoft amongst others.
The AGA (American Gaming Association) circulates a memo stating that online sweepstakes casinos undermine gaming regulations and are a threat to consumers. The AGA urges state regulators to send cease-and-desist notices to sweeps operators that they’ll face legal action if they don’t terminate US operations. It also suggests that new laws should be passed to prevent sweepstakes operators from operating.
News emerges that the Delaware Division of Gaming Enforcement sent a letter ordering Virtual Gaming Worlds (VGW) to exit the Delaware market back in February 2023. VGW’s casinos like Chumba Casino, Luckyland Slots, and Global Poker are still operating in this state.
Pulsz adds Alabama and Tennessee to its restricted territories and sends an account message to players in these states. Pulsz informs players that they have until September 9 to use up any Gold Coins and Sweepstakes Coins. All accounts will automatically close on November 9.
Sweepstakes company VGW (company behind Chumba Casino, Luckyland Slots, Global Poker) faces a class action lawsuit in the state of Georgia. Plaintiff Destiny Kennedy alleges that VGW is in breach of local gambling laws.
Sweepstakes casinos like Pulsz, Chumba, and Luckyland withdraw from Montana in anticipation of a new sweepstakes law that will ban sweeps casinos. Some sweepstakes casinos like Stake.us are still operating in this state as they are not outrightly banned yet.
The Michigan Gaming Control Board (MGCB) sends cease-and-desist letters to Sweepstakes Limited (Stake.us), VGW Luckyland Inc, and PredictionsStrike Inc. Reasons vary from promoting an unlicensed online lottery, to offering illegal gambling. As a result, Michigan is a restricted territory for all sweepstakes casinos.
Contests, lotteries and sweepstakes tend to be used interchangeably, but there are important distinctions between them. The reason why it’s important to distinguish between them is because states can allow one of these, but not others.
The three elements to factor in are:
Sweepstakes | Contests | Lotteries |
---|---|---|
Prize ✅ | Prize ✅ | Prize ✅ |
Chance ✅ | Chance ❌ | Chance ✅ |
Consideration ❌ | Consideration ✅ | Consideration ✅ |
The two elements that are there are Prize and Chance. When it comes to sweepstakes, there’s no consideration involved, so no purchase is required to enter. Therefore, you can enter with no significant effort.
In fact, any sweepstakes casino site will have a ‘No Purchase Necessary’ disclaimer at the bottom.
This is also why sweepstakes casinos are obliged to offer AMOE (Alternative Method of Entry) which allows you to send letter requests to get free Sweeps Coins.
Sweepstakes casinos are also different from real money casinos because real money casinos require Consideration.
Real money casinos will require an ‘entry fee’ in the form of a deposit in order to play. This makes them fall under gambling laws, which are more restrictive and illegal in most US states.
No, sweepstakes casinos do not have any special licenses to operate. This is another distinction from real money gambling sites which require licenses from state gaming regulators in order to operate in a particular state.
For example, a real money casino operating in Michigan would need a license from the Michigan Gaming Control Board.
Sweepstakes casinos might have licenses from territories like Curacao, Malta, or Isle of Man, but these are just there for added legitimacy. These licenses are not actually required to operate.
Sweepstakes casinos fall under the federal oversight of the FTC (Federal Trade Commission), along with the FCC (Federal Communications Commission).
The FTC enforces the federal law of the No Purchase Necessary or Enter to Win law. This law dictates that at least one entry needs to be free, and that no consideration is needed to enter and participate.
Any sweepstakes promotion that requires a fee is illegal in the US.
State | State Law | State Code |
---|---|---|
Alabama | Sweepstakes Solicitations | Ala. Code §§ 8-19D-1 to 8-19D-1 (2006) |
Arkansas | Prize Promotion Act | Ark. Code. Ann. §4-102-101 to 4-102-109 (2006) |
California | Prize Notification; Solicitation materials containing sweepstakes entries; Unlawful advertising; conditional offer of prizes or gifts | Cal. Bus. & Prof. Code § 17537 (2006); Cal. Bus. & Prof. Code § 17539.15 (2006); Cal. Bus. & Prof. Code §§ 17537 – 17537.1 (2006) |
Colorado | Sweepstakes and Contests | Colo. Rev. Stat. §§ 6-1-802 to 6-1-804 (2006) |
Connecticut | Sweepstakes | Conn. Gen. Stat. §§ 42-295 to 42-300 (2006) |
Florida | Game Promotion Registration Law | Fla. Stat. Ann. § 849.094 (2006) |
Georgia | Fair Business Practices Act | Ga. Code Ann. §§ 10-1-392 to 10-1-393 (2006) |
Hawaii | Offers of gifts or prizes; unlawful | Haw. Rev. Stat. § 481B-1.6 (2006) |
Illinois | Prizes and Gifts Act; Offers of free prizes, gifts or gratuities; disclosure of conditions | Ill. Comp. Stat. Ch. 815 §§ 525/1 – 525/35 (2006); Ill. Comp. Stat. Ch. 815 § 505/2P (2006) |
Indiana | Promotional Gifts and Contests | Ind. Code Ann. §§ 24-8-1-1 to 24-8-6-3 (2006) |
Iowa | Prize Promotions | Iowa Code §§ 714B.1 – 714B.10 (2006) |
Kansas | Prize Notification | Kan. Stat. Ann. § 50-692 (2006) |
Kentucky | Use of mailed document purporting to inform of winning a prize | Ky. Rev. Stat. Ann. § 365.055 (2006) |
Louisiana | Promotional Contests | La. Rev. Stat. Ann. §§ 51:1721 – 51:1725 (2006) |
Maryland | Offers of conditional prizes; exceptions | Md. Code Ann. Com. Law I § 13-305 (2006) |
Michigan | Lotteries | Mich. Comp. Laws § 750.372a (2006) |
Minnesota | Prize notices and solicitations | Minn. Stat. § 325F.755 (2006) |
Nevada | Sales Promotions | Nev. Rev. Stat. §§ 598.131 – 598.139 (2006) |
New Hampshire | Prizes and Gift Act | N.H. Rev. Stat. Ann. §§ 358-O:1 to 358-O:10 (2006) |
New Jersey | Notification to person that he has won prize and requiring him to perform act | N.J. Stat. Ann. § 56:8-2.3 (2006) |
New Mexico | Game Promotion Regulations | N.M. Admin. Code tit. 1 §§ 2.2.7 – 2.2.13 (2006) |
New York | Game Registration Law; Prize Award Schemes | N.Y. Gen. Bus. Law § 369-e (2006); N.Y. Gen. Bus. Law § 369-ee (2006) |
North Carolina | Prize Presentation Law | N.C. Gen. Stat. §§ 75-32 to 75-34 (2006) |
North Dakota | Contest Prize Notices | N.D. Cent. Code §§ 53-11-01 to 53-11-05 (2006) |
Ohio | Prizes | Ohio Admin Code § 109:4-3-06 (2006) |
Oklahoma | Consumers Disclosure of Prizes and Gifts Act | Okla. Stat. tit 21 §§ 996.1 – 996.3 (2006) |
Oregon | Contest, Sweepstakes and Prize Notification Rules | Or. Admin. R. §§ 137-020-0410 to 137-020-0460 (2006) |
Rhode Island | Prizes and Gifts Act; Games of Chance Registration Act | R.I. Gen. Laws §§ 42-61.1-1 to 42-61.1-9 (2006); R.I. Gen. Laws §§ 11-50-1 to 11-50-8 (2006) |
South Carolina | Prize and Gift | S.C. Code Ann. §§ 37-15-20 to 37-15-100 (2006) |
South Dakota | Sweepstakes Prizes | S.D. Codified Laws §§ 37-32-1 to 37-32-18 (2006) |
Tennessee | Promotions or inducements to sell goods, services or other products; Prizes | Tenn. Code Ann. § 47-18-120 (2006); Tenn. Code Ann. § 47-18-124 (2006) |
Texas | Contests and Gift Giveaways | Tex. Bus. & Com. Code Ann. §§ 40.001 – 40.005 (2006) |
Utah | Prize Notices Regulation Act | Utah Code Ann. §§ 13-28-1 to 13-28-9 (2006) |
Vermont | Contests and Sweepstakes | Vt. Stat. Ann. tit. 13 § 2143b (2006) |
Virginia | Prizes and Gifts Act | Va. Code Ann. §§ 59.1-415 to 59.1-423 (2006) |
Washington | Promotional Advertising of Prizes | Wash. Rev. Code §§ 19.170.010 to 19.170.900 (2006) |
West Virginia | Prizes and Gifts Act | W. Va. Code §§ 46A-6D-1 to 46A-6D-10 (2006) |
Wisconsin | Prize Notices | Wis. Stat. § 100.171 (2006) |
Wyoming | Promotional Advertising of Prizes | Wyo. Stat. Ann. §§ 40-12-201 to 40-12-209 (2006) |
Apart from federal oversight from the FTC, every individual state can come up with their own laws regarding sweepstakes casinos. This is why sweepstakes casinos are outrightly banned in Washington and Michigan, while Idaho only allows free play with Gold Coins.
Restrictions on Prize Redemptions
While some states ban sweepstakes casinos from operating, you might also find other restrictions such as capping the value of prize redemptions.
Sweepstakes casinos tend to limit players from New York and Florida to a maximum prize of $5000. Anything more than that will not be redeemed. You will always find this in the casino’s T&Cs.
Here’s an example from McLuck:
This is because New York and Florida require the sweeps casino (or any other sweepstakes provider) to register the contest if the total prize value exceeds $5000.
For New York, this requires:
Within 90 days of the game of chance, the New York State Department requires a Certification of Winners, with the names and addresses of each winner having a prize value of over $25.
Florida has similar requirements for prizes exceeding $5000:
The operator then has 60 days after the promotion to provide the Department of Agriculture and Consumer Services with a certified list of winners.
Sweepstakes casinos can be accessed by players over the age of 18. This is different from real money casinos which require players to be 21+. However, pay attention to your state laws as a sweeps casino’s T&Cs will always state:
‘18 years of age or the minimum legal age of majority, whichever is greater in the jurisdiction of your residence’
While the vast majority of US states have 18 as the legal age of majority, there are a few exceptions like:
The minimum legal age of entry is also dependent on the sweepstakes casino’s rules. Most popular sweepstakes casinos leave it as 18, but casinos like Stake.us pushed it to 21+ for all players.
Sweepstakes Casino | Minimum Legal Age |
---|---|
Stake.us | 21 years |
McLuck | 18 years |
WOW Vegas | 18 years |
Clubs Poker | 18 years |
RealPrize | 18 years |
Sweeptastic | 18 years |
The Money Factory | 18 years |
Spree | 18 years |
Jackpota | 18 years |
Not sure whether you need to pay tax on your sweepstakes casino winnings or not? We’re here to break it down for you.
For starters, yes, sweepstakes winnings are taxable in the US, depending on the total amount. Regardless of the amount, winnings always need to be declared as income.
There are two types of tax: the federal tax which applies to all US states, and potential state tax, which varies depending on the state you reside in.
There are different forms you need to familiarize yourself with.
This is the easiest form since it’s the standard IRS form to report all income, and casino winnings are viewed as income by the IRS. Sweepstakes winnings should go under ‘Other Income’.
Any winnings are added to your total income and your tax rate is determined based on your total earnings. This means that if you have a lot of winnings to declare, this can push you to a higher tax bracket.
We suggest you keep very detailed records of any winnings and losses. Losses can be deducted from your overall winnings, which reduces the amount of tax you need to pay.
The 1099-MISC form is sent by an online sweeps casino when you win a prize worth more than $600. If you receive this form, you still need to declare everything in form 1040.
Form W-2G is issued when a casino needs to pay $600 or more in winnings, if the winnings are at least 300 times the amount of the wager. If the winnings exceed $5,000, you need to withhold federal income tax of 24%
Alabama players are free to play at sweepstakes casinos since there are no unique state laws restricting their use.
However, the legal age of majority in Alabama is 19, as opposed to the average 18 years.
You can access practically all sweeps casinos, with the exception of McLuck and Pulsz, which currently both list Alabama as restricted territories.
There are no additional laws regarding sweepstakes casinos. Players from Alaska can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from Arizona can play freely at sweeps casinos in Arizona.
There are no additional laws regarding sweepstakes casinos. Players from Arkansas can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from California can play freely at sweepstakes casinos in California.
There are no additional laws regarding sweepstakes casinos. Players from Colorado can play freely at sweepstakes casinos in Colorado.
There are no additional laws regarding sweepstakes casinos. Players from Connecticut can play freely at sweeps casinos in Connecticut.
However, VGW casinos (Chumba, LuckyLand, Global Poker) have recently stopped operating in Connecticut after receiving a cease-and-desist letter sent by the Connecticut Department of Consumer Protection (DCP).
This can encourage other sweeps casinos to pull out from this state.
There are no laws in Delaware that prohibit sweepstakes casinos, and the vast majority of sweepstakes casinos operate freely in the state.
However, in February 2023, the Delaware Division of Gaming Enforcement ordered VGW (operator of Chumba Casino, Luckyland, and Global Poker) to stop offering its sweepstakes products in the state.
Despite this, all these VGW casinos are still open for Delaware players to join. The missing operator from this state is McLuck casino, which prohibits players from Delaware.
Florida allows sweepstakes casinos to operate. However, the state has additional restrictions regarding prizes exceeding $5000.
Prizes in excess of $5000 require the operator to register the promotion with the Department of Agriculture and Consumer Services, along with the terms and conditions. The operator also needs to set up a trust account.
In order to avoid these restrictions, sweeps casinos limit Florida players from winning more than $5000. While within this limit, you can play at sweepstakes casinos in Florida.
There are no additional laws regarding sweepstakes casinos. Players from Georgia can play freely at sweepstakes casinos in Georgia.
However, some sweepstakes casinos might opt to add Georgia as a prohibited territory after a class action lawsuit was filed against VGW (Chumba Casino, Luckyland, Global Poker). The plaintiff Destiny Kennedy is alleging that the company offers illegal online gambling products.
There are no additional laws regarding sweepstakes casinos. Players from Hawaii can play freely at sweeps casinos.
Idaho does not outrightly prohibit sweepstakes casinos, but it does not allow the redemption of cash prizes.
Since players from Idaho cannot engage in promotional play, Idaho is always on the list of restricted territories at sweepstakes casinos.
There are no additional laws regarding sweepstakes casinos. Players from Illinois can play freely at sweepstakes casinos in Illinois.
There are no additional laws regarding sweepstakes casinos. Players from Indiana can play freely at sweepstakes casinos in Indiana.
There are no additional laws regarding sweepstakes casinos. Players from Iowa can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from Kansas can play freely at sweeps casinos.
Although there are no laws prohibiting sweepstakes casinos from operating, Kentucky has had a long history of class action lawsuits related to social and sweepstakes casinos in Kentucky.
Some recent ones include SpinX and Pulsz.
This has prompted prominent operators like Stake.us and McLuck to add Kentucky to their list of restricted states.
There are no additional laws regarding sweepstakes casinos. Players from Louisiana can play freely at sweepstakes casinos in Louisiana.
However, there is an increasingly evident pattern of sweepstakes casinos restricting Louisiana players from joining. This list includes casinos like McLuck, Jackpota, and Clubs Poker. At this point, it’s unclear why operators are choosing to pull out of this state.
There are no additional laws regarding sweepstakes casinos. Players from Maine can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from Maryland can play freely at sweepstakes casinos in Maryland.
There are no additional laws regarding sweepstakes casinos. Players from Massachusetts can play freely at sweepstakes casinos in Massachusetts.
Michigan law does not define the term sweepstakes. In order for a promotion to be a sweepstakes it needs to lack ‘consideration’ as otherwise it can be classified as a lottery. In the case of Michigan, actions like being physically present in a business place or paying for Internet access makes it include consideration, thus rendering the activity a lottery.
Although players from Michigan could play freely at sweepstakes casinos, this changed in November 2023 when the Michigan Gaming Control Board (MGCB) sent cease-and-desist letters to prominent operators like Stake.us, Luckyland, and PredictionsStrike Inc.
This prompted sweeps casinos to stop operating in the state.
There are no additional laws regarding sweepstakes casinos. Players from Minnesota can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from Mississippi can play freely at sweeps casinos.
However, Mississippi has the highest legal age of majority at 21 years.
There are no additional laws regarding sweepstakes casinos. Players from Missouri can play freely at sweeps casinos.
Although there are no additional laws restricting sweepstakes casinos, several operators do not operate in Montana. This list includes McLuck and Wow Vegas.It is unclear why this is the case.
However, there is some good news for Montana players as brands like Stake.us and RealPrize still accept players here.
There are no additional laws regarding sweepstakes casinos. Players from Nebraska can play freely at sweeps casinos. However, note that the legal age of majority is 19, not 18.
There are no additional laws regarding sweepstakes casinos and players can play freely at sweeps casinos.
However, players in Nevada might find their options limited as most sweepstakes operators, including Stake.us, do not operate in the state. It is unclear why operators choose to exclude this state.
There are no additional laws regarding sweepstakes casinos. Players from New Hampshire can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from New Jersey can play freely at sweeps casinos in NJ.
There are no additional laws regarding sweepstakes casinos. Players from New Mexico can play freely at sweeps casinos.
Similar to Florida, New York has additional restrictions for prizes exceeding $5000. These include a filing fee of $100, a list of all terms and conditions of the promotion, a surety bond, and more.
This prompts sweeps casinos to cap prizes at $5000 and avoid the extra logistics. You can play at sweepstakes casinos in New York while under this restriction.
There are no additional laws regarding sweepstakes casinos. Players from North Carolina can play freely at sweepstakes casinos in NC.
There are no additional laws regarding sweepstakes casinos. Players from North Dakota can play freely at sweeps casinos.
There are no additional laws regarding online sweepstakes casinos. Players from Ohio can play freely at sweeps casinos in Ohio.
Do note however that the Ohio Penal Code prohibits sweepstakes games in a sweepstakes terminal device facility, so sweepstakes games in a physical location are not allowed.
There are no additional laws regarding sweepstakes casinos. Players from Oklahoma can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from Oregon can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from Pennsylvania can play freely at sweeps casinos in Pennsylvania.
There are no additional laws regarding sweepstakes casinos. Players from Rhode Island can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from South Carolina can play freely at sweeps casinos.
Source: South Dakota Legislature, Chapter 37-32 Sweepstake Prizes
There are no additional laws regarding sweepstakes casinos. Players from South Dakota can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from Tennessee can play freely at sweepstakes casinos in Tennessee.
There are no additional laws regarding sweepstakes casinos. Players from Texas can play freely at sweeps casinos in Texas.
There are no additional laws regarding sweepstakes casinos. Players from Utah can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from Vermont can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from Virginia can play freely at sweeps casinos in Virginia.
Sweepstakes casinos are not allowed to operate in Washington. There are clear laws that mark these sweeps casinos as illegal.
This means that all casinos list Washington as a restricted state.
There are no additional laws regarding sweepstakes casinos. Players from West Virginia can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from Wisconsin can play freely at sweeps casinos.
There are no additional laws regarding sweepstakes casinos. Players from Wyoming can play freely at sweeps casinos.
Whether you’re looking at long-established social casino giants or new sweeps cash casinos with relatively few users, it’s important to keep an eye out for recognizable licenses, solid player reviews and fair promotions when comparing sweepstakes casinos alongside each other. Reading through privacy policies to check your data will be adequately protected is a must, too.
All the social casinos recommended by Ballislife have been thoroughly checked for their legitimacy, though it’s your responsibility to ensure any sweeps site you’re thinking of registering with is fully available in your region before creating an account with them.
There are several things you ought to look out for when shopping around for social and sweepstakes casinos in your state. Once you’re familiar with the warning signs of unfair and unlicensed providers, it’s easy to stay safe when playing Vegas-style games online. Get more gaming tips with Ballislife today.
Many sweepstakes casinos offer their services to American gaming lovers in multiple states, but not all social casinos are available in all areas and regions. Our guides to sweepstakes casino gaming can help you find the best operators currently active in your area.
Sweepstakes casinos tend to get super-competitive when it comes to bonuses. Promotions are the primary means by which these sites reel in new players, so we’d always advise shopping around to pinpoint which operators are offering the best deals instead of settling with the first platform you find. Compare bonus offers between social casinos via our site today.
Disclaimer: Kindly note that we are not legal or tax experts. While we always strive to present the most accurate information, this is not binding legal advice. Always reach out to a licensed lawyer or tax advisor when in doubt.
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