As the popularity of online gaming grows, more players are turning to sweepstakes casinos as a way to experience the thrill of gaming while avoiding the legal restrictions on traditional online casinos.
Sweepstakes casinos are 100% legal in most US states but must still comply with federal laws and regulations. To ensure you’re well-informed before you start playing, keep reading our comprehensive guide to sweepstakes casino laws in the United States.
What Are Sweepstakes Casinos?
Sweepstakes casinos are online gaming platforms that let you play casino-style games without depositing or spending real money. These sites offer games like slots, poker, and blackjack but don’t feature live casino games.
Instead of requiring real money, sweepstakes casinos let you use virtual currency or “sweeps coins,” which can later be exchanged for cash prizes. Traditional gambling laws don’t apply to sweepstakes casinos, which enables them to have legal status in most US states.
How Sweepstakes Casinos Work
Sweepstakes casinos operate using two types of virtual currency — gold coins and sweeps coins. When you register with a sweepstakes site, you get a specific amount of gold coins to get you started. One such offer is the Fortune Coins no deposit bonus, which gives you 140,000 gold coins and 500 free Fortune or sweeps coins.
In addition to these offers, sweepstakes casinos give you free gold coins for daily logins. You can use this currency to play, but you can’t win real cash prizes with it. You can only win cash by playing with sweeps coins. However, you can’t buy additional sweeps coins — you can only get them as a bonus if you purchase gold coins.
Sweepstakes Casino Laws in the United States
In the United States, the legal framework for sweepstakes casinos is shaped by federal and state regulations. The Federal Trade Commission (FTC) oversees these casinos at the national level. The FTC enforces rules to protect against dishonest or unjust practices in sweepstakes and contests.
Sweepstakes casinos are governed by the following laws:
- Unlawful Internet Gambling Enforcement Act (UIGEA) — Enacted in 2006, this act forbids gambling establishments from taking payments related to an individual’s participation in bets or wagers involving the internet. Nevertheless, sweepstakes casinos are not classified as gambling businesses under this act since players do not stake actual money.
- US Postal Service’s Sweepstakes Regulations — Sweepstakes casinos must comply with rules established by the US Postal Service. These regulations dictate that sweepstakes must provide an alternative free method of entry (AMOE) and cannot mandate a purchase for participation.
Therefore, the two main legal requirements for sweepstakes casinos are that they don’t ask players to make bets or wagers and that they provide an alternative free method of entry. Legal sites fulfill these conditions by allowing users to play their games for free and by enabling them to send mail-in requests for sweeps coins.
The federal law also stipulates that sweepstakes casinos should include the following information in their terms and conditions — eligibility requirements, entry instructions, important dates and deadlines, odds of winning, details of the prize, and selection details.
The legal framework for sweepstakes casinos at the state level differs based on the jurisdiction. Most states permit these casinos to function as long as they comply with the above rules and regulations. Nonetheless, a few states, including Washington and Idaho, implement more rigorous gambling regulations, essentially prohibiting sweepstakes gaming.
Final Thoughts
Sweepstakes casinos provide a unique approach to casino-style gaming while complying with legal requirements. It is crucial for players interested in engaging with these platforms to understand the laws governing sweepstakes casinos in the US to avoid legal complications.
Be sure to research the regulations in your state and the terms and conditions of any sweepstakes casino you intend to play at. This way, you can relish the excitement of playing casino games while remaining within the confines of the law.