Sweepstakes Casinos Explained: How They Work and Where They're Banned
The two-coin model was built to sit outside gambling law. A growing list of US states has decided it does not.
Sweepstakes casinos are US sites that offer slot-style games using two virtual currencies, one of which can be redeemed for prizes. Operators argue this is a promotion rather than gambling. As of 3 November 2026, at least nine states have passed laws against the model, and regulators in several more have acted under existing gambling law.
This article explains the model and tracks the law. It does not recommend any site, and it is general information rather than legal advice. Gambling carries real risk and is for adults only: see our responsible gambling page for help resources.
How the two-coin model works
A sweepstakes casino gives players two balances. The first, usually called Gold Coins, is for play only and has no cash value. Players can buy more of it. The second, usually called Sweeps Coins, comes free as a bonus with those purchases, and also through free routes such as daily logins or a postal request. Sweeps Coins can be played and, after a playthrough requirement, redeemed for cash or gift cards.
The legal argument rests on that free route. US gambling law generally looks for three things: a prize, chance and consideration, meaning something paid to play. Sweepstakes promotions avoid the third by offering a free way to enter, the same structure used by a soft drink's bottle cap competition. Operators say Sweeps Coins are never sold, so nothing is paid to play.
Lawmakers and regulators increasingly see it differently. In their reading, a site where players buy a coin bundle to receive redeemable credits, then spin a slot, is gambling with an extra step.
Where sweepstakes casinos are banned by statute
| State | Law | Effective |
|---|---|---|
| Montana | SB 555 | 1 Oct 2025 |
| Connecticut | SB 1235 | 1 Oct 2025 |
| New Jersey | A5447 | In force since 2025 |
| New York | S5935A | Dec 2025 |
| California | AB 831 | 1 Jan 2026 |
| Tennessee | SB 2136 | 2026 |
| Indiana | HB 1052 | 1 Jul 2026 |
| Maine | LD 2007 | July 2026 |
| Oklahoma | SB 1589 | 1 Nov 2026 |
The total depends on who is counting. One tracker updated in late October 2026 says thirteen states while naming only nine, and it lists Iowa as a ban and Tennessee as an enforcement state. Another treats Iowa's SF 2289 as enforcement power and Tennessee as a statute. We list what at least one dated tracker ties to a specific bill, so check the statute itself before relying on any single row.
States acting without a new law
A statute is not the only route. Trackers report that Washington's Gambling Commission, Idaho's Attorney General and Nevada's Gaming Control Board read their existing gambling law as covering the model. Michigan's regulator sent cease-and-desist letters in 2023 and 2024. Louisiana is reported to have an attorney general opinion and enforcement activity, and reports on its 2026 bills are inconsistent. In these states a site can leave suddenly with no change in the statute books.
Why it matters if you stream or promote
Sweepstakes content looks like a safe option for a US audience. The platform rules make it less simple.
- Kick's community guidelines say sponsored gambling is allowed only for platforms holding valid licences in the relevant jurisdiction, and that creators must follow the gambling law where they are. A sweepstakes site's whole position is that it does not need a gambling licence, which is hard to square with that sentence.
- Twitch does not allow links or codes to sites containing slots, roulette or dice games. The wording is about the games, so calling them sweepstakes does not obviously help.
- An audience spread across fifty states includes viewers in states with bans. A referral link cannot tell them apart, although the site may block them after they click.
Our article on responsible gambling on stream covers the disclosures any casino content should carry. Before you take a deal, check what the site is licensed for and how your country treats gambling promotion. Our Kick versus Twitch comparison covers the differences between platforms.
What to watch next
Bans have moved quickly since 2025, with new states arriving every few months. Fully regulated online casinos are a separate question, covered in which US states allow online casinos. Anything you read about a state's status, including this page, is a snapshot. We checked these facts on 3 November 2026.
Sources
- Tech Insider: sweepstakes casinos by state
- Casino.com: sweepstakes legal states, updated 28 Oct 2026
- Kick community guidelines
Frequently asked questions
What is a sweepstakes casino?
A site offering slot-style games with two virtual currencies. One is for play only. The other is given away free, often alongside purchases of the first, and can be redeemed for prizes. Operators argue the free route keeps it outside gambling law.
Are sweepstakes casinos legal?
It depends on the state. As of 3 November 2026, trackers tie statutory bans to at least nine states, including California, New York, New Jersey and Indiana, and regulators in several others treat the model as illegal gambling under existing law.
Can streamers promote sweepstakes casinos?
It carries risk. Kick allows sponsored gambling only for sites licensed in the relevant jurisdiction, Twitch bars links and codes to sites with slots, roulette or dice games, and an audience can include viewers in states with a ban.
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