How sweepstakes casinos work: Gold Coins, Sweeps Coins and redemptions

A sweepstakes casino looks like an online casino: slots, sometimes table games, a cashier page. The difference is legal. Instead of real-money bets it runs two virtual currencies, and only one of them can turn into a prize. Operators say that structure makes the site a promotional sweepstakes, not gambling. Regulators in a growing list of states disagree.

The two currencies

Gold Coins are play-money. Sites usually hand some out as sign-up and login bonuses, and you can buy more in packs. They have no cash value and cannot be redeemed. One operator's published rules say Gold Coin purchases are final and no refunds are offered.

Sweeps Coins (also called SC, or a site's own name) are the promotional entries. They usually arrive as a bonus attached to a Gold Coin pack, through site promotions, or by free mail-in request. You play games with them, and the Sweeps Coins you win can be redeemed for prizes.

In the operator rulebook we reviewed (version 3.2, updated 30 March 2026), 1 Sweeps Coin redeems for $1, and Sweeps Coins expire 60 days after your last login (logging in or playing resets the timer). Other sites set their own rates and expiry, so read each set of rules.

"No purchase necessary" and the mail-in route

US promotions law treats a game as an illegal lottery when it has three elements: a prize, chance, and consideration (paying, or something of value, to take part). Sweepstakes remove consideration by offering an alternative method of entry (AMOE): a free way in that gives the same chance as a paid one. Promotions lawyers RTM put the rule simply: a game of chance with a prize "cannot require a purchase to participate unless there is another way to enter", and AMOE entrants should have the same odds as paid entrants.

For sweepstakes casinos the AMOE is usually a postal request. The rulebook we reviewed asks verified users to:

• write their request in blue or black ink on a 4" by 6" postcard or plain white sheet;
• include a single-use, 12-digit request code that expires after 30 days;
• send one request card per stamped #10 envelope to the operator's PO box.

Each valid request earns 1 Sweeps Coin. That is the free route in law. In practice, a card, an envelope and a stamp for $1 of entries is why most Sweeps Coins come bundled with purchases.

Redemption rules: where the friction is

Winning Sweeps Coins is not the same as being able to cash them out. Expect three hurdles.

1. A minimum balance. The rulebook we reviewed sets a minimum redemption of 100 Sweeps Coins ($100). Below that, nothing can be withdrawn.

2. Playthrough. Sweeps Coins usually have to be played through before they count as redeemable. The same rules require 1x playthrough on eligible games and exclude whole categories from counting, including live casino, table, roulette, Hi Lo and card games, and two named slots. Winnings from bonus spins are capped at 2 SC for every 5 spins and also need 1x playthrough.

3. Identity checks. Operators verify winners before paying, and the reviewed rules allow the operator to ask for an affidavit of eligibility before releasing a prize. Identity verification comes before any redemption, so expect to be asked for ID. Limits also apply: bank-transfer redemptions of up to $2,500 a day in that rulebook (higher for some users), and the operator may set weekly limits.

Worked example (illustrative)

These figures are our own illustration, not any operator's offer. Say a site gives you 20 Sweeps Coins with a Gold Coin purchase, with 1x playthrough and a 100 SC minimum.

• You must place 20 SC of eligible bets before those coins become redeemable.
• On a slot returning 95%, 20 SC of bets costs about 1 SC on average (our calculation: 20 × 5% = 1). You would expect around 19 SC left, not 20.
• You are still about 81 SC short of the 100 SC minimum (100 − 19). To reach it, you need wins, or more coins, which in practice usually means more purchases.

The maths of the games is the same as at any casino: the house edge applies to every Sweeps Coin you play. Playthrough on a bonus costs money on average, as our guide to wagering requirements explains in detail.

Why they are not state-licensed

Because operators argue there is no consideration, they say no gaming licence is needed. They do not hold licences from state gaming regulators, so they are not supervised by one in the way a licensed casino is.

Regulators have pushed back. In February 2025 the Michigan Gaming Control Board sent cease-and-desist letters to nine unlicensed online casinos and said that one method these platforms use to evade regulatory scrutiny "is by operating under the guise of sweepstakes". States have also legislated: California's AB 831 targets games that use a "dual-currency" system to simulate casino gambling, and reaches payment processors, geolocation providers and media affiliates as well as operators. New York's law (S5935-A), signed on 5 December 2025, sets civil fines of $10,000 to $100,000 per violation.

Each operator also publishes its own list of excluded states. The rulebook we reviewed (section 2.1) excluded residents of California, Connecticut, Idaho, Michigan, Montana, New Jersey, New York, Nevada, Tennessee and Washington. For the state-by-state picture, see where sweepstakes casinos are legal.

Age limits

Sweepstakes rules set their own minimum age. The rulebook we reviewed requires players to be 18 or the local age of majority, whichever is higher. Each site sets its own rule, so check the eligibility section before you sign up, because a redemption can be refused if you were not eligible when you played.

Risks and mistakes to avoid

• Treating Gold Coin packs as deposits. They are purchases. They are not refundable and cannot be withdrawn.
• Ignoring the minimum. A balance below the redemption minimum is worth nothing in cash.
• Playing excluded games. Bets on games that do not count leave your playthrough untouched.
• Skipping the rules. Expiry dates, daily caps and excluded states vary by site and change over time. In the rulebook we reviewed, New York is on the excluded list, yet one version of the redemption-limit clause sets a separate daily cap for players in New York. Where rules contradict themselves, ask the operator in writing before you buy.
• Assuming protections. Without a state licence, your route for complaints is the operator's own terms. The rules we reviewed point to individual arbitration under the operator's terms and conditions.
• Playing where the model is banned. Laws now reach operators and, in some states, the companies that promote or process payments for them.

Where we list sweepstakes sites

We list sweepstakes sites only in states where the model is not banned or treated as illegal by the state regulator or attorney general, and where the operator itself accepts players. Every state's status, with sources is checked against each state's regulator and statutes. The sweepstakes hub explains how we rate them, and how we rate sets out our method. If you want a licensed real-money option, see New Jersey, Pennsylvania or Michigan casinos.