Are Sweepstakes Casinos Legal? State by State Guide

Are sweepstakes casinos legal in my state? It’s a question thousands of Americans are asking in 2025 as new legislation sweeps across the country. While many states still allow these promotional platforms to operate, others have introduced bills to regulate or ban them outright, and the legal landscape is shifting fast.

This page breaks down where sweepstakes casinos stand legally across all 50 states. We’ll show you which states are safe, which are introducing new bills, where bans have already passed, and how operators are staying compliant through AMOE models, KYC checks, and IP tracking. If you’re playing or planning to, this is the only legal tracker you’ll need to stay up to date.

TL;DR: Are Sweepstakes Casinos Legal in My State?

• Sweepstakes casinos are legal in most states, with bans enforced in New York, Washington, Michigan, Connecticut, Idaho, Nevada, and Montana (NV & MT from Oct 2025).
  
• Several states failed to pass bans in 2025, including Texas, Florida, Louisiana, and Mississippi.
  
• Legislation is under review in New Jersey, Ohio, Massachusetts, and Illinois — legal status could change soon.
  
• Operators stay compliant using AMOE models, geo-blocking, KYC, and separate currencies.
  
• Yes, you can win real cash prizes with Sweeps Coins in eligible states — and yes, those winnings are taxable.
  
• The SPGA is lobbying to protect access, and new compliant casinos are still launching in 2025.

Sweepstakes Casino Bill Tracker 2025

The table below highlights U.S. states where sweepstakes casino legislation is currently active or has recently changed. If your state is not listed, that means social and sweepstakes casinos remain legal and unregulated at the state level as of mid-2025.

States to Watch (States with Active Legislation)

Several states are actively considering new sweepstakes casino legislation in 2025. While no bans have been finalized in these regions (yet), proposed bills could significantly change the legal status of social casinos and sweepstakes-style platforms. 

Below, we take a closer look at key states where regulation or restriction efforts are underway, and where players should be paying close attention.

New Jersey – A5447 / A5196

Lawmakers in New Jersey are considering new regulations on sweepstakes casinos, including potential licensing requirements and consumer protections. Two bills — A5447 and A5196 — are currently under review in the Assembly. These aim to define the legal status of social casino-style games and require clearer terms for users.

Key Takeaway: New Jersey hasn’t banned sweepstakes casinos, but regulation could tighten significantly depending on how the bills progress in late 2025.

Ohio – 2025 Draft Legislation

Ohio lawmakers have introduced early-stage language that could classify sweepstakes casino operators under state gambling law. While no bill has been finalized, draft discussions are underway to consider whether these platforms fall under existing online gaming statutes.

You can monitor proposed activity via the Ohio Legislature Bill Search. The state’s interest in regulating these platforms follows growing participation and concerns over player protections.

Key Takeaway: Ohio is still in review mode, but players should watch for updates in late summer or early fall.

Massachusetts – TBD Bill

In Massachusetts, legislators are exploring ways to classify sweepstakes casinos as gambling operators. No formal bill number has been released yet, but legislative momentum is building as more policymakers raise concerns about the “no purchase necessary” model being used to bypass gambling laws.

You can check for the most recent updates at malegislature.gov.

Key Takeaway: A formal bill is expected before the end of 2025, and social casino regulation could quickly follow.

Illinois – Draft Discussions

Illinois has initiated informal hearings to determine whether sweepstakes casino operators should be licensed. Concerns have been raised over game fairness and underage play, particularly with no oversight from the Illinois Gaming Board.

No official bill has been introduced yet, but the groundwork is being laid for possible legislation in early 2026.

Key Takeaway: Illinois may move from discussion to drafting status within the next legislative session. For now, sweepstakes casinos remain legal in Illinois.

Idaho – Further Restrictions Possible

Idaho has already limited sweepstakes casinos and classifies many as unlawful gambling. However, new conversations in 2025 suggest the state may look to expand enforcement or close loopholes. The Idaho Legislature already has strong language under Title 18, Chapter 38.

Key Takeaway: While effectively banned, Idaho may strengthen its language and enforcement further, especially if national cases arise.

Washington – Enforcement Expanding

Although Washington already bans sweepstakes casinos, new amendments may tighten definitions and broaden enforcement tools. The original HB 1994 outlawed simulated gambling platforms, but lawmakers are reportedly working on language to prevent re-entry by sites exploiting legal grey areas.

Key Takeaway: Washington isn’t just banning — it’s evolving. Expect more amendments to reinforce the existing sweepstakes casino ban.

States Where Sweeps Legislation Has Failed

Several U.S. states have attempted to ban or regulate sweepstakes casinos in 2025; but failed. In most cases, bills either stalled in committee, were vetoed, or didn’t receive enough support to pass. 

In all of these states, sweepstakes casinos remain legal for now, though future proposals may reappear in upcoming sessions.

Florida – HB 1467

Florida lawmakers introduced HB 1467, a bill that sought to crack down on sweepstakes-style gaming machines and social casino operations. Although it passed through some House committees, the bill failed to gain traction in the Senate and ultimately died in session.

Sweepstakes casino legislation in Florida has faced challenges due to First Amendment concerns and the popularity of promotional platforms across the state.

Current Status: Sweepstakes casinos remain legal in Florida, though this bill could resurface in future sessions.

Louisiana – SB 181

Louisiana came close to banning sweepstakes-style play with SB 181, which passed both legislative chambers. However, on June 14, 2025, Governor Jeff Landry issued a veto, citing concerns about economic overreach and enforcement ambiguity.

This decision was a major moment for the industry, as Louisiana would have become one of the most populous states to restrict access to social casino platforms.

Current Status: Legislation failed. Sweepstakes casinos remain legal in Louisiana.

Texas – SB 517

Texas attempted to pass SB 517, which would have redefined elements of sweepstakes casino models as illegal gambling. The bill failed in committee and did not reach a full floor vote, marking a second consecutive year of stalled regulation attempts.

Despite conservative momentum in other areas of gambling enforcement, Texas sweepstakes casino legislation continues to run into political resistance and enforcement complexity.

Current Status: No ban passed. Sweepstakes casinos are still operating in Texas.

Maryland – SB 860

Maryland lawmakers pushed SB 860 in an effort to define and restrict digital sweepstakes-style gambling. The bill passed the Senate with moderate support but failed to move forward in the House, stalling just before the session ended.

The Maryland Lottery and Gaming Control Agency has voiced interest in further exploring the issue, but no current ban exists.

Current Status: Legislation failed. Sweepstakes casinos remain legal in Maryland.

Mississippi – SB 215

In Mississippi, SB 215 was introduced to restrict simulated gambling activities and online sweepstakes platforms. It passed the initial chambers but died in the conference committee due to a lack of agreement on the final language.

This marked the second year in a row that sweepstakes regulation efforts failed in the state.

Current Status: No restrictions enacted. Players can legally access sweepstakes casinos in Mississippi.

Arkansas – HB 1235

Arkansas’ HB 1235 was withdrawn before reaching a vote. The bill’s sponsor pulled it after early opposition from both gaming advocates and digital rights groups.

With no further bills introduced during the 2025 session, Arkansas remains open to social casinos and sweepstakes platforms.

Current Status: Legislation withdrawn. Sweepstakes casinos remain legal in Arkansas.

States That Have Banned Sweepstakes Casinos

Several states have taken legislative action to ban sweepstakes casinos and social casino platforms, either through new bills or by enforcing existing gambling laws. 

The table below outlines where these bans are in place as of 2025, along with links to the original bills or statutes.

Full List of Sweepstakes Casino Legality by State

This table includes the current sweepstakes casino status in all 50 U.S. states. It highlights whether sweepstakes casinos are legal, banned, or restricted in each state, along with brief notes or limitations where applicable.

What are Sweepstakes Laws and How Do They Relate to Social Casinos?

Sweepstakes casinos operate under a unique legal framework that distinguishes them from traditional real-money online casinos. These platforms rely on sweepstakes laws, particularly those that govern promotional contests, to offer casino-style games without requiring users to gamble real money.

Instead of placing wagers, users play with virtual currencies (e.g. Gold Coins and Sweeps Coins), and in eligible states, can redeem Sweeps Coins for real-world cash prizes or gift cards. The system is only legal because of a crucial compliance standard known as AMOE,  “No Purchase Necessary” laws.

These laws are the foundation that allows social casinos to legally operate in most U.S. states, provided they follow certain rules. Below, we’ll explain the key legal concepts and how sweepstakes platforms stay within the lines.

Can I Win Real Money at Sweepstakes Casinos?

Yes,  in most states, players can legally win real money at sweepstakes casinos.

The prize model hinges on the use of Sweeps Coins, which are earned through free promotions or bundled with Gold Coin purchases. Once players win additional Sweeps Coins by playing slots or table games, they can request to redeem their balance for real cash, often at a 1:1 ratio (e.g. 1 SC = $1 USD), depending on the platform.

However, this is only possible in states where sweepstakes casinos are legal and where the platform offers a redemption mechanism. Some states, such as Idaho and Washington, prohibit Sweeps Coin redemption entirely, while others cap prize values or require specific ID verification.

How Sweepstakes Casinos Work: No Purchase Required & AMOE Model

To remain legal, sweepstakes casinos must comply with No Purchase Necessary laws, which fall under federal sweepstakes promotion rules and state-by-state consumer protection standards. This is referred to as the Alternate Method of Entry (AMOE).

Here’s how the AMOE model works:

• Players can access free coins by logging in daily, completing tasks, or entering giveaways.
  
• Gold Coins are typically used for standard social gameplay and cannot be redeemed.
  
• Sweeps Coins are distributed either through free methods (AMOE) or as a bonus included with Gold Coin purchases.
  
• No player is ever required to spend real money to participate in games that offer real prize opportunities.
  

As long as platforms offer legitimate ways to enter and play for free, they stay compliant with U.S. promotional laws — the same laws that govern things like McDonald’s Monopoly and sweepstakes raffles.

Steps Sweepstakes Casinos Take to Stay Compliant

To ensure they meet both federal promotional rules and local gambling laws, sweepstakes casinos implement a number of compliance strategies:

• Geo-tracking/IP detection: Platforms use IP addresses and GPS data to block users from restricted states (like New York or Washington).
  
• KYC Verification: Players must complete Know Your Customer checks (usually submitting ID and proof of residence) before redeeming prizes.
  
• AMOE access: A legitimate, well-documented method for users to claim free Sweeps Coins, often involving a mail-in request or form submission.
  
• Separate currency systems: Clear distinction between non-redeemable (Gold Coins) and redeemable (Sweeps Coins) balances.
  
• Provably Fair RNG systems: Many platforms advertise third-party-tested Random Number Generators to ensure that games are fair and not manipulated.
  
• Transparency in terms: Legal terms and conditions clearly outline prize values, eligibility, redemption process, and geographic limitations.

These steps are critical to avoid classification as illegal gambling operators. Any sweepstakes casino operating without AMOE or clear separation of currencies risks enforcement or shutdown, especially in regulated states.

Do I Have to Pay Tax on Sweepstakes Casino Winnings?

Yes. Sweepstakes casino winnings are considered taxable income in the United States, even though these platforms operate with virtual currencies. Once you redeem Sweeps Coins for cash or gift cards, those rewards are subject to federal and potentially state taxes.

Federal Tax Obligations

According to U.S. tax law, sweepstakes prizes, including those earned via social casinos, must be reported to the IRS. If your redemptions total $600 or more in a calendar year, the casino may issue a Form 1099-MISC, which will also be submitted to the IRS.

That said, even if you don’t receive a tax form, you are still legally required to report your winnings when filing your return.

State-Level Tax Considerations

Tax treatment at the state level varies. Some states, such as Texas and Florida, do not impose a personal income tax, meaning you may not owe anything beyond federal obligations. Others, including California and New York, classify sweepstakes prizes as regular income and apply standard tax rates.

If you’re uncertain about your responsibilities, it’s best to consult a licensed tax professional or check with your state’s Department of Revenue.

Recommended Recordkeeping

To remain compliant, players should keep detailed records of:

• The date and value of each Sweeps Coin redemption
  
• The number of coins redeemed
  
• Any tax forms issued by the platform
  

Having this information on hand will help streamline your tax filing and provide documentation in case of an audit.

You can learn more about how these platforms operate on our Sweepstakes Casinos page.

What’s Next for Sweepstakes Casinos?

Despite growing legislative pressure, sweepstakes casinos in the U.S. are far from fading out. In fact, the industry is pushing back, and growing in the process.

A key voice in the conversation is the Social Gaming Protection & Advancement Association (SPGA), a coalition of sweepstakes platforms, legal experts, and tech providers working to educate lawmakers and defend the model. Through ongoing advocacy and transparency efforts, the SPGA is lobbying to protect access to legal sweepstakes play and clarify the difference between real-money gambling and promotional gaming. You can learn more about their work at thespga.org

While a handful of states have passed bans or introduced bills, the majority still allow sweepstakes casinos to operate legally,  and new platforms continue to launch. You can find the latest, fully compliant options on our new sweepstakes casinos page, updated regularly with trending brands and promotions.

As enforcement efforts increase, so do the compliance tools. Platforms are investing heavily in KYC verification, geo-blocking, and RNG auditing to remain accessible in most U.S. states. This evolution, paired with legal advocacy, suggests that the sweepstakes casino model will remain a major part of the U.S. gaming landscape, even as regulations evolve.

To stay informed about legal updates and the future of promotional gaming, visit our sweepstakes casino hub for ongoing coverage, legislation tracking, and platform reviews.

Participate Responsibly

Even though sweepstakes casinos are not classified as real-money gambling, many of the same responsible play principles still apply. If you find yourself spending more time or money than intended, even within a virtual currency system,  it may be time to take a break or seek support.

Players are encouraged to set personal limits, avoid chasing losses, and treat sweepstakes gaming as a form of entertainment, not income.

Support Resources

If you or someone you know is struggling with gambling-related behavior, the following resources offer confidential help and advice:

• National Council on Problem Gambling (NCPG) – Provides support, treatment referrals, and a 24-hour helpline.
  
• ResponsiblePlay.org – Educational resources and tools for managing healthy play habits.
  
• GamTalk – An online peer support forum for individuals impacted by gambling.

Sweepstakes platforms that are fully compliant will often provide their own responsible play tools, including self-exclusion options, spending history logs, and account limits. For more on how the model works and where it’s legal, visit our sweepstakes casino overview.

The Legal Landscape Is Shifting — But So Is the Industry

Sweepstakes casinos are at a legal crossroads in the U.S. While most states still allow them to operate without restrictions, others are tightening the rules, and a handful have already shut them out. But the industry isn’t standing still. With backing from the SPGA and a wave of new, fully compliant platforms entering the space, the sweepstakes model is evolving just as fast as lawmakers can draft new bills.

If you’re already playing, it’s worth staying informed. If you’re new to it, this could be a great time to explore the space, especially with more platforms launching each month. Just remember: even when no purchase is necessary, it’s still smart to play with intention, stay within your limits, and keep an eye on the laws in your state.

For the latest platforms available where you live, check out our list of new sweepstakes casinos. And to understand how it all works — from coins to compliance — head over to our sweepstakes casino hub.

Jose Del Pozo

Jose is an iGaming analyst with wide experience within the sector. He has been working as content writer on casino and betting websites for more than 10 years, contributing on websites like Pokerlistings, Casinobee, Betpack among others, sharing his insights and perspective for the future ofthe iGaming market.