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Hub of Luck

Sweepstakes casinos

Gold Coins, Sweeps Coins and redemptions explained, with the US states where sweepstakes casinos are banned and where we list them.

Where it is legal

Status in each place we cover, checked against the regulator. Tap a place for the full picture and, where it is allowed, the sites we list there.

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Sweepstakes casinos: what people ask

How do sweepstakes casinos work?

Sweepstakes casinos run casino-style games on a two-coin system. One coin is for fun play only; the other can be redeemed for cash or prizes. Sites often sell coin packages and include the redeemable coins with them, while promoting free ways to play. Several state regulators and attorneys general say this model can amount to illegal gambling.

Source: Minnesota Attorney General: Letter on sweepstakes casino websites (5 Nov 2025); Washington State Gambling Commission: Letter on social/virtual-currency casinos

What is the difference between Gold Coins and Sweeps Coins?

Gold Coins are play-only currency with no value outside the game, even though sites sell them. Sweeps Coins are the promotional currency that can be redeemed for cash or prizes, often given alongside a Gold Coin purchase in roughly equal dollar value. Names vary by site, but this two-coin structure is how the model works.

Source: Minnesota Attorney General: Letter on sweepstakes casino websites (5 Nov 2025)

Are sweepstakes casinos legal?

It depends on your state, and the law is changing fast. They are not licensed by state gaming regulators. Several states have passed laws banning them, and regulators elsewhere, including Washington's Gambling Commission and Minnesota's attorney general, say the model is likely illegal gambling. Where they still operate, players get none of the protections of a licensed casino.

Source: Washington State Gambling Commission: Letter on social/virtual-currency casinos; Minnesota Attorney General: Letter on sweepstakes casino websites (5 Nov 2025)

Do I have to pay tax on sweepstakes casino prizes?

In the US, yes. The IRS treats gambling and prize winnings, including the fair market value of non-cash prizes, as taxable income you must report. For prizes awarded in 2026, sponsors generally issue Form 1099-MISC only at $2,000 or more, but smaller redemptions are still taxable. Keep records of what you redeem.

Source: IRS: Topic no. 419, Gambling income and losses; IRS: Instructions for Forms W-2G and 5754 (01/2026)

Are sweepstakes casinos safe?

They are not regulated like licensed casinos. Minnesota's attorney general says these sites may also break consumer protection law, partly because 'play for free' marketing can mislead people about their legality. Without state licensing there is no gaming regulator to take a complaint. Treat any money spent as entertainment, never as a way to earn.

Source: Minnesota Attorney General: Letter on sweepstakes casino websites (5 Nov 2025); Washington State Gambling Commission: Letter on social/virtual-currency casinos