Sweepstakes casinos are legally permitted in 48 states, including California, Texas, and Georgia. However, they are outlawed in Washington and Idaho.
Their popularity stems mainly from traditional online casinos being banned in all but six states.
A type of social casino, sweepstakes casinos typically offer slots and popular casino games like blackjack and roulette. They’re often launched while waiting for in-state lawmakers to approve online casinos.
Why Are Sweepstakes Casinos Legal?
At a traditional online casino, you use real money to gamble. However, you use virtual currencies like Gold Coins and Sweeps Coins at sweepstakes casinos. Sweepstakes casinos stand out because they have to offer free play options, often by giving players free Gold Coins and Sweeps Coins.
Data from the Social & Promotional Games Association (SPGA) shows that more than two-thirds of players on sites they are associated with play for free, which means most players never spend money. Instead, they play for fun and enjoy the chance of winning prizes without buying anything.
The legal age for social casinos is usually 18 and over. By law, sweepstakes casinos must ensure you are over the legal age to play and reside in a legal state.
American Gaming Association Addresses Social Casinos
In addition to addiction concerns, an American Gaming Association representative recently addressed the legality of sweepstakes casino gaming in the U.S., emphasizing that it's too risky for the association's regulated members to offer.
Chris Cylke, the AGA's Senior Vice President of Government Relations, joined Victor Rocha and Jason Giles of the Indian Gaming Association on "The New Normal" webinar. They discussed the rise of sweepstakes gaming in California and the emergence of DFS 2.0.
Earlier this year, the AGA sent a memo to state regulators, urging gaming boards to assess sweepstakes gaming in their regions. They asked regulators to ensure that companies offering sweepstakes casinos or sports betting services comply with legal and regulatory standards.
Cylke mentioned that the AGA has asked the Department of Justice and the FBI to take more decisive action in investigating and prosecuting some of the companies that are not on the up and up.
Sweepstakes Casinos Gaining Popularity
Despite this, sweepstakes casinos continue to build an audience.
Major gaming players, like the World Poker Tour (WPT), have embraced sweepstakes despite any concerns. The WPT started a new poker site using the sweepstakes model earlier this year. The WPT plans to host a $5 million freeroll event in Las Vegas in December.
Your best bet is to make sure you’re playing in a legal state, meet the age requirements and find a regulated social casino. Although sweepstakes casinos are an exciting alternative to traditional real money online casinos and are available in more jurisdictions, they still must adhere to specific federal and state laws.
There is a list of sweepstakes casinos, including:
This can help you decide which one you'd like to use. There is also a list of the best social casinos you can try for free anytime! Just remember to play responsibly.
