Sweepstakes Casinos: U.S. Legal Status by State

Not All States Are Equal: Know Where Sweepstakes Casinos Are Legal Before You Play

Sweepstakes casinos are booming—but the legal landscape is changing fast.

These platforms play the “dual-currency” trick to sidestep gambling laws. However, states like California and Connecticut are striking back.

As someone who cares about safe and legal gaming, I say: understand your state’s rules before diving in.

Let’s explore where these sweepstakes casinos stand—and what you need to watch for.

3 Key Points

1. Dual-currency loophole: Platforms use Gold Coins and Sweeps Coins to mimic gambling without real-money wagering.
2. State crackdowns: California’s AB 831 and Connecticut’s SB 1235 define and criminalize sweepstakes casinos.
3. Player risk: Availability varies dramatically—and surprise legal shifts can impact access overnight.

A Friendly Warning

As a gambling professional, I find sweepstakes casinos fascinating—yet I also see risk. They offer casino-style excitement using virtual currencies. That feels safe… until the law changes overnight.

Let’s dive into the legal terrain state by state.

Legal Hotspots by State

California: AB 831’s All or Nothing Approach

California’s Assembly Bill 831 bans “dual-currency” sweepstakes casinos .
It defines illegal activities and prohibits not just operators, but also payment processors and affiliates .
Violators face civil and criminal penalties: up to $25,000 fines, jail time, or both .
Tribal gaming groups backed the bill, arguing it protects their sovereign casino revenue .
Opponents—like SPGA and ACLU—claim it could ban everyday promotions and hamper innovation.
AB 831 cleared major committees 6–0 and awaits Senate votes .

Connecticut: SB 1235’s Total Sweep

Governor Ned Lamont signed SB 1235 into law in June.
It bans dual-currency gaming and promotional sweepstakes, excluding basic grocery-store offers.
Violators may face fines up to $5,000 and five years in prison as a Class D felony.
Law passed unanimously: House 146–0, Senate 36–0 .
Lawmakers say it clarifies the line between legitimate sales promos and casino-style gaming.

Montana Leads the Ban Trend

Signed in May by Governor Gianforte, Montana’s SB 555 bans dual-currency sweepstakes casinos .
It flags violations as felonies—reinforcing the federal pastime’s seriousness .

Other State Developments

• Nevada & New Jersey considered bans—Nevada enacted them; New Jersey is pending.
• New York issued cease-and-desists to 26 platforms and passed a legislative measure into committee .
• Louisiana lawmakers approved a sweepstakes ban, but Governor Landry vetoed it. He argued existing laws suffice.
• Florida & Georgia: Still allow sweeps for now—but Florida shelved bills in 2025 (observed earlier).

Why This Matters

1. Legal uncertainty: Laws are changing rapidly. Platforms that operated yesterday may be criminal today.
2. Consumer risk: State crackdowns may make funds or bonuses inaccessible.
3. Regulatory gap: Unlike regulated state games, sweeps avoid oversight—raising player safety concerns.

My Advice for Players

• Always check your state’s laws. Don’t rely on platforms alone.
• Mind the announcements. A legal shift could change access overnight.
• Think beyond entertainment. Play responsibly, and don’t chase bonus credits without understanding the risks.

Sweepstakes casinos occupy a legal grey zone—creative, but risky. States like California, Connecticut, Montana—and likely more—are closing in fast with bans. If you’re playing sweeps, know your local laws. Right now, not all states are equal—and soon fewer will allow these platforms. Be informed, be safe, and game smart.