No federal law makes sweepstakes casinos legal or illegal nationwide. They run on the sweepstakes model (free entry, no purchase necessary), and each state decides whether it will allow that model for casino-style games. Since 2025, more and more states have decided it won't.
States that ban or restrict sweepstakes casinos
As of our latest check, 15 states ban or restrict online sweepstakes casinos. Some passed laws aimed squarely at the dual-currency model. In others, regulators enforce gambling law that was already on the books. A ban that's enacted but not yet in force shows up as pending.
| State | Status | Law | Effective |
|---|---|---|---|
| California | Banned by statute | AB 831 (Ch. 623, Stats. 2025) | Jan 1, 2026 |
| Connecticut | Banned by statute | Public Act 25-112 (SB 1235) | Oct 1, 2025 |
| Delaware | Restricted by regulator | Delaware Division of Gaming Enforcement cease-and-desist (VGW Luckyland, 2025) | — |
| Idaho | Restricted under general gambling law | Idaho Constitution art. III, § 20 | — |
| Indiana | Banned by statute | HEA 1052 (2026) | Jul 1, 2026 |
| Louisiana | Banned by statute | HB 883 | Aug 1, 2026 |
| Maine | Banned by statute | LD 2007 | Jul 29, 2026 |
| Michigan | Restricted by regulator | Michigan Gaming Control Board cease-and-desist letters (Stake.us, VGW LuckyLand, 2023) | — |
| Montana | Banned by statute | SB 555 (2025) | Oct 1, 2025 |
| Nevada | Restricted under general gambling law | SB 256 (Ch. 337, 2025) | — |
| New Jersey | Banned by statute | A5447 | Aug 15, 2025 |
| New York | Banned by statute | S5935-A (Ch. 605 of 2025) | Dec 5, 2025 |
| Tennessee | Banned by statute | SB 2136 / HB 1885 | May 22, 2026 |
| Utah | Restricted under general gambling law | Utah Code § 76-9-1401 et seq. (gambling, fringe gambling, online gambling) | — |
| Washington | Restricted by regulator | RCW 9.46.240 | — |
| Illinois | Regulator warnings; ban bill pending | SB 1705 | — |
| Oklahoma | Pending or not yet in force | SB 1589 (2026) | Nov 1, 2026 |
Each row links to a state page with the timeline and sources. Where we could reach the legislature's own record, we read the enacted text ourselves, and that's how we caught a common mistake: Wyoming's 2026 law (SF0044) does not mention sweepstakes. It narrows the "social gambling" exception, so Wyoming isn't on our ban list.
What the new laws have in common
Most of the 2025–26 bans target the same thing: an online game that simulates casino play and uses a dual-currency system, meaning a coin you can buy plus a free promotional coin that can be exchanged for prizes. Several also make it illegal to promote these sites, and some add heavy civil penalties or even racketeering exposure for operators.
What about the other states?
34 jurisdictions (states plus DC) have no law written specifically for sweepstakes casinos. That isn't the same as "legal". Older gambling, lottery and consumer-protection laws can still apply, and attorneys general can sue, as Florida's did in August 2026. Operators also drop states on their own, often more of them than the law requires.
That's why every casino page here checks three things and marks a state unavailable if any one of them rules it out: the operator's own excluded-states list, the states where it allows Gold Coin play only, and state bans.
Never use a VPN to get around a ban
Operators have to block players located in restricted states. A VPN, a friend's address or false details all break their terms, and the usual result is a closed account and voided prizes.
FAQ
Are sweepstakes casinos federally legal?
There's no federal approval and no federal ban. Each state decides.
Which states ban sweepstakes casinos?
15 states restrict them as of our latest check. The table above lists each one with the enacted law and its effective date.
Does "no purchase necessary" make a site legal everywhere?
No. A sweepstakes needs a free way to enter, but a state can still prohibit casino-style sweepstakes games.
Can an operator exclude my state even without a ban?
Yes, and many do. Every casino page here shows that casino's own state list.