Are sweepstakes casinos legal?
While there’s no one-size-fits-all answer here, I will provisionally say that, yes, sweepstakes casinos are legal in the USA. Hooray!
Not so fast, however. You see, while general sweepstakes gaming laws in the US are pretty lenient at the federal level, individual states are free to set their own laws on the brands that they allow in.
So, while I would love to say that all your fave sweepstakes casinos are legal, that will depend on where you live. Check out some of our other guides to online sweepstakes for more info on these state-by-state laws.
What does the federal law say about sweepstakes casinos?
For a sweepstakes casino to set up shop in the USA, it needs to meet certain criteria. For instance, the law states that…
- All games and features must be available on a no-purchase necessary basis. All purchases must be optional only.
- A sweepstakes casino’s T&Cs must be transparent, with clear rules and guidance setting out how to obtain free coins.
- Only players aged 18+ are permitted, with KYC (know your customer) measures required to verify this.
- All gameplay outcomes must be based on chance, not skill.
So long as a sweepstakes casino sticks to this criteria, it can operate legally in the USA. However, as mentioned, some states can choose to restrict certain brands, so you’ll need to triple-check that a site is available in your neck of the woods before you can sign up and play.
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Which states have tricky sweepstakes casino rules?
It doesn’t take long to figure out that there are a few US states that stand out for their strict rules on sweepstakes casino usage. The same jurisdictions appear time and again in individual brand T&Cs, so if you live in any of the following areas, you might have a tricky time finding an available sweepstakes casino:
- Alabama
- Colorado
- Idaho
- Kentucky
- Louisiana
- Michigan
- Montana
- Nevada
- Tennessee
- Washington
Now, I’m not saying that these states have a blanket ban on sweepstakes casinos full stop, or that other territories don’t have similar restrictions. But you’ll want to triple-check a brand’s availability if you live in any of these areas in particular.
Five legal sweepstakes casinos that offer excellent US coverage
It doesn’t matter whether I’m writing up a guide to sweepstakes casino redemption time limits or listing legal states – I can’t resist bringing you my recommended brands of the moment. So, with that in mind, here are five legal sweeps casinos that enjoy excellent coverage across the USA.
RealPrize – Outstanding coverage and a killer welcome offer
Real Prize In A Nutshell
Good news: RealPrize is available in 41 US states at my last count, which represents fantastic coverage for a US sweepstakes casino. There’s only a small handful of states where you’re not permitted to use RealPrize in the States, which might have something to do with the site’s use of robust geolocation technology and its comprehensive KYC (know your customer) verification processes; you’ll need to pass these to purchase Gold Coins and redeem Sweeps Coins on the site.
Meanwhile, RealPrize is certainly an attractive proposition for new members, with a cool 100,000 Gold Coins and 2.5 Sweeps Coins available through its welcome bonus. The brand has recently launched a new iOS mobile app, too, opening up to a new pool of potential players.
How To Sign Up
- Visit the Website: Go to the Real Prize website.
- Click on 'Sign Up': Locate the registration button on the homepage.
- Fill Out the Registration Form: Enter your personal details, including your email and phone number.
- Verify Your Account: You may need to confirm your email address or phone number through a verification code.
- Claim Your Bonus: After registration, you can claim any welcome bonuses offered.
- Start Playing: Once your account is set up, you can begin playing games using your Gold Coins and Sweepstakes Coins
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Sweeps Royal – Available in 39 US states and packing in 3,000+ playable games
Sweeps Royal In A Nutshell
Remarkably, Sweeps Royal has packed over 3,000 casino-style games into its library of playable titles, so I doubt that feeling bored will be much of a problem here. You can spin the reels in the Sweeps Royal slot suite, roll the dice on the tables, or enter exciting live casino game rooms, each powered by esteemed studio ICONIC21.
Of course, before you do that, you’ll need to make sure your home state is on the brand’s 39-strong list of legal jurisdictions. That’s pretty decent coverage for a sweepstakes casino of this quality, with Sweeps Royal only restricted in 11 regions in total. That includes Connecticut, Delaware, Hawaii, Idaho, Louisiana, Michigan, Montana, Nevada, New Jersey, New York, and Washington.
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Dara Casino – Legal sweepstakes gaming with tons of variety
Dara Casino In A Nutshell
What I like most about Dara Casino is the variety of games it has to offer. You’ll find more than just your standard slots and table games on this awesome sweepstakes casino, with arcade, bingo, real dealer, scratch cards, and fish shooters being some of the alternative game categories on offer.
If you want to join Dara Casino, you’re in luck, as this brand is available in 41 US states at the time of writing. You’ll need to be 18+ to play and must complete KYC verification checks to purchase Gold Coins and redeem Sweeps Coins for prizes on the site.
How To Sign Up
- Click 'Join Now'
- Enter email address, password, click 'Next'
- Enter first name, last name, state, date of birth, tickboxes for to agree to T&C's.
- Click 'Create An Account'.
LoneStar Casino – Comparable legal status to RealPrize
LoneStar Casino In A Nutshell
For those who don’t know, LoneStar Casino is a sister site of RealPrize, with each of these brands developed and hosted by RealPlay Tech Inc. That means LoneStar Casino members can expect a comparable legal backdrop to RealPrize, with both of these sites available in 40+ US states.
Currently, LoneStar Casino is available in 43 states, which is slightly more than its RealPlay bedfellow. That could be because it’s a comparatively new site that’s smaller in size and scope; it’s often the case that as sweepstakes casinos grow, they come to the attention of state lawmakers, who may choose to restrict (or grant) access depending on a site’s individual merits.
How To Sign Up
- Click 'Register'
- Sign up via Facebook, Google or Email.
- Enter first name, last name, email, password and tickboxes for over 18 as well as Terms of Service,
- Click 'Create Account'
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Jackpota – Expect premium games and a low minimum SC redemption requirement at Jackpota
Jackpota In A Nutshell
Although Jackpota is available in the lowest number of states on my shortlist (36), there may be a good reason for that. This brand is owned and operated by B-Two Services, a parent company that also runs successful sweepstakes casinos like McLuck and MegaBonanza. Big companies like this often pique the interest of state lawmakers, so it’s not surprising that Jackpota is restricted in more states than some other brands.
Nevertheless, this is a legit and well-rated sweepstakes casino, so I would encourage you to check it out if it’s available in your jurisdiction. B-Two Services brands like Jackpota are revered for their premium games, eye-catching promotions, and, in the case of Jackpota in particular, their fair sweepstakes rules and redemption requirements.
How To Sign Up
- Quick registration process.
- Click 'Join Now'
- Register via Google account or email address.
- Enter email, password, first name, last name, date of birth, referred by (optional), tickboxes for T&C and age verification.
- Click 'Play Now'.
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Compare my recommended sweepstakes casinos, nice and easy
Those who’ve read my guide to sweepstakes casino playthrough requirements will know that I love a comparison chart. So, here’s another, perfect for pitching these recommended sites against one another…
| Brand | Welcome bonus | No. of legal states | Mobile app | Min. SC redemption |
|---|---|---|---|---|
| RealPrize | 100,000 GC + 2.5 SC | 41 | Yes – iOS only | 100 SC for cash, 45 SC for gift cards |
| Sweeps Royal | 50,000 GC + 1 SC | 39 | No | 100 SC for cash, 50 SC for gift cards |
| Dara Casino | 100,000 Gc + 2 SC | 41 | No | 100 SC for cash |
| LoneStar Casino | 100,000 GC + 2.5 SC | 43 | No | 100 SC for cash, 45 SC for gift cards |
| Jackpota | 7,500 GC + 2.5 SC | 36 | No | 75 for cash, 10 SC for gift cards |
What are the pros and cons of sweepstakes casino laws in the USA?
Before I round off my guide to the legal landscape of sweepstakes casinos and point you in the direction of other useful guides, like say, this one on sweepstakes casino RTP, here are the pros and cons of sweepstakes casino laws in the USA that you’d do well to remember.
- Lenient enough to allow broad coverage
- Ensures that T&Cs are transparent
- Doesn’t restrict the possibility of SC redemptions
- States have ultimate control over availability
Lots of legal sweepstakes online casinos to enjoy
I get that the legal landscape associated with sweepstakes casinos can be a little head-scratching. But hopefully, this guide has shed light on the most important aspects to remember, while encouraging you to check through a brand’s T&Cs carefully to make sure it’s available in your state.
If you’re looking to get started with a new legal sweepstakes casino, Jackpota, RealPrize, LoneStar Casino, Sweeps Royal, and Dara Casino are all legit and reputable options. Use the links around this page to learn more about these sites, including their free-to-collect welcome offers.
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Are sweepstakes casinos legal FAQs
Do you have to pay tax on sweepstakes casino prizes?
Yes, potentially. The IRS does classify sweepstakes casino prizes as taxable income, but only over a certain amount. Check the local laws in your state for more information.
How do you tell if a sweepstakes casino is legal in your state?
The easiest way to find out is to check a brand’s T&Cs. I’m yet to encounter a sweepstakes casino that doesn’t publish this information in its small print.
Can you win money at sweepstakes casinos in the USA?
No! If you could, they probably wouldn’t be legal. Sweepstakes casinos are strictly classed as fun-first gaming sites, although you may have the chance to redeem free Sweeps Coins for a prize in certain instances.