How Sweepstakes Casinos Work (And Why They’re Legal)
If you’ve ever wondered how sweepstakes casinos work, I’m going to give you the full scope. These social gaming sites seem simple enough, but there’s more to the story than just signing up and playing.
On this page, I’ll explain how the different coins work, whether or not they are operating legally in the US, and how you can turn free gameplay into cash.
Sweepstakes Casinos in a Nutshell
Sweepstakes casinos offer many of the same games as traditional online casinos, but they use a virtual currency instead of real money, which allows them to operate legally in most US states.
For example, they still offer blackjack, video poker, and slots, but you play with “coins” instead of having to make a deposit. While you can’t win real money directly at sweeps casinos, you can redeem some of the coins for prizes like gift cards and cash.
How Sweepstakes Casinos Work Behind the Scenes
Although it’s easy enough to start playing at a sweepstakes casino, there are a few things you should understand first. Let’s take a look at how they work.
Access & Registration
To play at a sweeps casino, you need to create an account. Generally, that requires you to enter some basic information, like your name, location, birthdate, and email address.
After signing up, you can usually claim a welcome bonus that gives a good amount of coins to start playing with.
Dual-Currency System
When you visit a sweeps casino, you’ll immediately recognize that they use a dual-currency system: Gold Coins (GCs) and Sweeps Coins (SCs).
Gold Coins are just for fun and are easy to earn. Sweeps Coins, on the other hand, can be redeemed for prizes. Since they have a value, they’re more challenging to collect.
Gameplay
You can play casino games with Gold Coins or Sweeps Coins; the choice is yours. While Gold Coins are purely for entertainment, playing with Sweeps Coins means you can eventually turn your wins into a prize.
The gameplay itself is very similar to a real money online casino. You can find slots, video poker, table games, and even live dealers at sweepstakes Casinos.
Acquiring More Coins
Every day, you earn more coins by logging in to your account. It’s as easy as that. There are other ways to acquire coins, too, like playing games, entering social media giveaways, mailing in requests, or buying them.
You can’t purchase Sweeps Coins outright, but they often come as a bonus to Gold Coin packages.
Redemption
Once you meet a minimum amount of Sweeps Coins according to the site, and you’ve played through all of them once, you can request to redeem them for a prize, which includes gift cards to various retailers and restaurants or cash.
Types of Prizes You Can Win
A major draw to playing at sweepstakes casinos is the potential to get prizes. Here’s a rundown of what you can redeem your Sweeps Coins for.
- Cash Payouts: Cold, hard cash is one of the most popular prizes at sweeps casinos. Many let you turn in your SCs to get a real money payout.
- Gift Cards: Sweeps casinos often offer gift cards to tons of different retailers like Starbucks, Amazon, Best Buy, and Walmart.
- Merchandise: Some also offer physical prizes like branded merchandise, memorabilia, or gadgets.
Can You Win Real Money at Sweepstakes Casinos?
Yes, you can win real money at sweepstakes casinos, but it’s not a direct process. There are a few things you must do first before you can turn your coins into cash.
To put it bluntly, Gold Coins are worthless, so you want to play with Sweeps Coins if your goal is to get a cash prize. Remember that your chances of winning the games are the same as playing at a real casino. It’s mostly up to luck.
There is a minimum amount of Sweeps Coins you have to collect to be eligible for redemption, and it varies from site to site, though it’s typically in the 50 to 100 range. You must also play through your Sweeps Coins once before requesting a redemption through the site’s cashier.
The conversion rate is typically one Sweeps Coin to $1, so for example, if you had 100 SCs in your account, you could get a $100 prize.
Are Sweepstakes Casinos Legal in the US?
Sweepstakes casinos operate in a legal grey area. Because they use virtual currency and don’t require any purchases, they fall under sweepstakes laws instead of gambling laws. That loophole makes them legal in places where traditional casinos aren’t.
Sweepstakes casinos are regulated at a federal level by the Federal Trade Commission, and also at a state level. In states where they are legal, they must meet specific requirements, like consumer protections, age limits, and advertising standards. However, some states have decided to outlaw them altogether.
These are the defining qualities that make a Sweeps casino legal:
- No Purchase Necessary: US legislation states that three factors must be present for an operation to be considered illegal gambling: consideration (cash entry to participate), chance, and an opportunity to win a prize. By eliminating the consideration and making the games free to play, they are able to comply with the law.
- Promotional Gaming Model: Through the promotional gaming model, players can win and collect coins that they can redeem for prizes. To stay legal, sweepstakes casinos prohibit the purchase of Sweeps Coins. They may, however, come as an added bonus to Gold Coin packages.
- Geographic Restrictions: Most states allow sweepstakes casinos, but some do not. For this reason, they use geolocation technology to block players from prohibited areas. The states where sweepstakes casinos are illegal are: Nevada, Idaho, Michigan, and Washington.
Give a Sweepstake Casino a Try
Now that you understand how sweepstakes casinos work, it’s easy to see why they’ve become so popular.
Who can pass up the opportunity to play games and get cash or gift cards without risking any money? Since they use a no-purchase necessary model, you can enjoy casino games for free, earn actual prizes, and still stay within the law.
Ready to give it a try? Explore our recommended Sweepstakes casinos.
FAQ
For more information about sweepstakes casinos, check out our FAQs.
Do sweepstakes casinos ever refuse a payout?
Yes, sweepstakes casinos can refuse a payout, but it happens for specific reasons like violating their terms and conditions, identity verification issues, suspected fraud or cheating, or legal restrictions.
Can you actually make a profit from sweepstakes, or is it just for fun?
Yes, you can actually make a profit from sweepstakes casinos. However, it’s not a good way to supplement your income, and you should always play responsibly.
What’s the longest you’ve waited for a cashout?
It can take up to 10 days to get your prize, but I’ve typically received my redemption in under five days.
Is it better to buy Gold Coins or just play with freebies?
It’s best to play with freebies to avoid a hit to your wallet, but occasionally, there are good deals of coin packages that may be worth it, especially when they come with complementary Sweeps Coins.
