There is no single US law for sweepstakes casinos. A federal rule says a real sweepstakes cannot make you pay to enter, while each state decides whether dual-currency casino-style games are allowed. California and New York have both banned them, so where you live matters more than any operator’s promise.
Sources checked October 4, 2026. This is a plain-language overview, not legal advice. Laws change, so confirm the current rules for your state.
The federal idea: free entry
The Federal Trade Commission says real sweepstakes are free and decided by chance. It is illegal to ask you to pay or buy something to enter, or to improve your odds of winning. That is why sweepstakes casinos describe a free route to promotional coins, such as a daily bonus or a mail-in request. Our guide to what a sweepstakes casino is explains how the two currencies work.
The state layer: where the rules differ
Federal rules do not settle whether a game that looks like a casino can run as a sweepstakes. States decide that, and a growing number have acted.
- California: Assembly Bill 831 was signed on October 11, 2025. It bans online sweepstakes games that use a dual-currency system to offer casino-style play with cash prizes. It also reaches anyone who knowingly supports such games, including payment processors and affiliates. Violations are misdemeanors, with fines from $1,000 to $25,000, up to a year in county jail, or both. Licensed gambling and the state lottery are exempt.
- New York: Senate Bill S5935 was signed on December 5, 2025, and took effect immediately. It bans online sweepstakes games built on dual-currency systems and covers operators, promoters and financial supporters. Fines run from $10,000 to $100,000 per violation, and the State Gaming Commission, State Police and Attorney General can enforce it.
Other states are also changing their rules, and the list moves quickly. Use our states page as a starting point, then check the operator’s own terms.
What this means for you
- A site that loads in your state does not prove it is allowed there.
- Check the operator’s eligibility section for excluded states before you sign up or buy anything.
- Be wary of any site that asks you to pay to claim a prize. The FTC calls that a scam.
- If your state bans these games, do not look for workarounds such as a VPN. Operators prohibit them in their terms.
Entertainment coins are for play, not income. Set a budget and keep it recreational. Browse our sweepstakes casino rankings with your state’s rules in mind, and read how we research. SweepAtlas may earn commissions from some links; see our affiliate disclosure.
Featured photo: wooden gavel by Wesley Tingey on Unsplash, used under the Unsplash License. Illustrative stock photography.
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