Restricted States

State by State Availability 

Sweepstakes casino accessibility is variable in the U.S., as different jurisdictions have created separate laws that govern promotional gaming events and prize competitions. The following is an easy to understand overview of what is currently allowed for gaming and redeeming prizes in sweepstakes casinos, restricted and under law enforcement activity. Use the charts below to check current restrictions for your area. 

States With Restrictions, Bans, and Active Enforcement 

The following states either prohibit sweeps casinos completely, enforce bans or apply various legal constraints which limit redemptions or access. 

Table 1: Restricted States and Active Enforcement 

Fully Allowed States 

Currently the below states permit sweeps casinos and have no major statewide limitations.  

Table 2: Fully Allowed States 

What Each Category Means 

Sweepstakes casino availability is subject to the jurisdiction of each state, which is dependent on how each state interprets promotional contest regulations. The following categories are intended to provide an understanding of what individuals can expect regarding restrictions, potential enforcement action, or completely unencumbered access to sweepstakes casinos. 

Completely Banned States 

States that prohibit sweepstakes casino operations will require operators to prevent registered users from registering for a user account, participating in sweepstakes contests, and/or redeeming prizes. For example, the State of Washington has imposed criminal penalties related to online sweepstakes style gaming. 

Active Enforcement or De Facto Bans 

Jurisdictions that have taken significant action against operators (i.e., sending cease and desist letters; issuing subpoenas; obtaining Attorney General opinions; imposing large fines) will create a level of risk for the operator, often forcing them to withdraw voluntarily from the market. In some cases, active enforcement by a jurisdiction does not constitute a statutory ban, yet it can limit participation in a sweepstakes casino and result in restricted access to accounts, rejected prize redemptions, or complete loss of access to a platform. 

Allowed with Restrictions 

Some jurisdictions allow sweepstakes casinos, however they may place certain limitations on their use. The most obvious example of this type of restriction is the $5,000 prize cap in the State of Florida. As a result of this cap, operators will be forced to design their promotions, and award prizes, accordingly. 

Fully Allowed States 

These jurisdictions do not pose a major regulatory barrier to the operation of sweepstakes casinos. However, due to various internal compliance policies, operators may choose to block select states and, therefore, the availability of sweepstakes casino games may vary depending on the specific platform used. 

Why Some States Restrict Sweepstakes Casinos 

Sweepstakes casinos are regulated by a separate set of regulations related to prize promotion and contest laws, which is different from regular gaming laws. Access to sweepstakes casinos varies significantly across the United States because each regulatory agency has their own interpretation of the laws that govern sweepstakes and contests. Some jurisdictions allow full operation of sweepstakes casinos while others place very restrictive requirements upon them or have outright bans. Sweeps casino restrictions generally occur due to several key areas

• There is significant variation in definitions of contests and gambling by jurisdiction, and therefore, each jurisdiction has its own definition of “gambling” and many will determine that sweepstakes casino models fall within their definition of gambling due to the fact that participants will have the opportunity to win cash or other items through chance. As a result, some jurisdictions will choose to restrict or ban sweepstakes casinos. 
• There is generally a lack of regulation over prize disbursement for sweepstakes casino operators, and because these operators do offer legitimate prizes to their customers, many states will take steps to regulate the disbursement of prizes in order to ensure the legitimacy of the prizes offered, and to comply with state consumer protection laws and regulations. As a result of this lack of clarity, regulatory agencies will take steps to address this area of regulatory concern. 

Understanding Scheduled Bans 

Certain states/regions have made the decision to go one step further than enforcement action, they have enacted laws banning (on a future date) sweepstakes casinos, in an effort to create a longer term environment for regulation, and often to affect the actions of operators prior to the enactment date of those regulations.  

The reason that the scheduled prohibition is so important is that it causes operators to begin preparing for restrictions on their operation in jurisdictions that are planning to ban sweepstakes casino’s at some point in the future. Once a jurisdiction announces its intent to ban sweepstakes casino’s, operators usually prepare for those restrictions by restricting certain features, eliminating redemption options for prizes, and/or withdrawing from operating in that jurisdiction. 

Scheduled prohibitions occur when there has been legislative analysis that determines that the business model of sweepstakes casinos has similarities to online gaming that a jurisdiction wants to prohibit. In addition, scheduled prohibitions can be part of broader consumer protection reform and/or updates to the interpretation of contest and promotional laws. 

Although prohibitions are still inactive, residents in jurisdictions where scheduled prohibitions have been enacted will likely notice changes ahead of time. Operators may: 

• Suspend the registration of new accounts
• Suspend Sweeps Coin access, or limit the ability to redeem prizes
• Limit promotional, and/or bonus offers
• Withdraw completely from the jurisdictions in anticipation of meeting compliance requirements 

In general, residents in jurisdictions where scheduled prohibitions have been enacted should expect that access to the various elements of the platform will be reduced over time as the effective date of the prohibition approaches. It is important for participants to regularly review the terms of service, as access to the platform may be restricted at any time due to changes in regulatory provisions or operator risk assessments.

How Operators Decide Where They Can Operate 

Sweepstakes casinos are not strictly dependent on State law as to what jurisdictions they can operate in. Both Platforms individually conduct their own Legal/Risk assessment, which results in a wide variety of different Availability Policies (even in Fully Permitted Jurisdictions). Therefore, two companies operating under the same Regulatory Environment could have completely opposite interpretations as to whether or not an Operator is allowed to allow access in that jurisdiction.  

The reasons for such Determination are: 

• Internal Legal Assessments: Each Platform has a Legal Department that evaluates how State Laws, Attorney General Opinions, and Regulatory Guidelines pertain to Sweepstakes Models. In instances where there is Uncertainty surrounding the application of such laws, some companies will take a very Conservative Approach, and thus Deny Access to the entire jurisdiction. 
• Risk Management Factors: As an Operator, they must consider the Risks associated with being subject to Enforcement Actions, Litigation, and/or Regulatory Investigations. When the legal environment is Unpredictable, Withdrawal from the jurisdiction is often viewed as the Safer Alternative to Risking Non-Compliance. 
• Unclear/Shifting State Rules: Some jurisdictions demonstrate an extremely fluid position towards Sweepstakes Gaming. Laws can be updated; new opinions can emerge; and enforcement priorities can shift without Warning to Operators. Operators are constantly monitoring such developments, and may Preemptively Restrict access to jurisdictions where Clarity does not exist. 
• Verification/Prize Compliance Costs: Jurisdictions vary in the level of documentation required for Prize Fulfillment, Identity Verification, and Contest Disclosures. Smaller Operators, in particular, may elect Not to Operate in jurisdictions that are Costly/Complex for Compliance.
   

What to Do if Your State Is Restricted 

Sweepstakes casino gaming may be restricted in certain areas of the country or subject to active enforcement. Depending on the type of platform and type of restriction, there are still some alternatives that may be available to you if you live in a restricted area. Please follow the steps below to learn what activities may be permitted or prohibited: 

Restrictions can vary greatly based on the platform. First, check to see if the operator allows play from your state by looking at their website for a list of states they do and do not allow play from, or by contacting their customer service department and asking them if they have any restrictions on play from your state.  

Some platforms will completely block you from playing games, while others will let you create an account, play games with gold coins, but won’t let you cash out your sweeps coins winnings.  

Not all restrictions are total bans. In many cases, the operator may allow you to create an account and play games with gold coins, but restrict you from being able to claim your sweeps coins winnings.  

Additionally, some platforms may limit access to only specific features or temporarily stop allowing you to process your prize redemption.  

Gold coins are used solely for entertainment purposes, and cannot be redeemed for real money or prizes. Many operators allow you to continue playing using Gold Coins even if they restrict use of Sweeps Coins (the currency that can be redeemed for prizes).  This way, you can continue to enjoy the games offered by the operator, and avoid violating either the law, or any restrictions imposed by the operator. 

In almost every case, an operator is going to want to verify that you live in a jurisdiction that allows them to offer online sweepstakes to residents before awarding prizes. If you recently relocated to a new home, moved, or traveled to another location that does allow online sweepstakes casinos, you may need to provide additional information or wait until your residency status has been verified.  

Many operators will ask for documents like a valid government issued ID, proof of address, etc. to confirm your identity prior to processing your prize. Make sure that these required documents are readily available so the process is smooth when you become eligible for a prize.  

The landscape of state laws and operator policies is constantly changing. Some operators may enter into jurisdictions once they are no longer restricted by law, while others will remove themselves from a jurisdiction before it becomes too restrictive. By regularly checking their terms and any announcement pages, you can stay informed about how changes to your local laws or the platform’s policy may affect you. 

Conclusion 

Casino sweepstakes laws in the U.S. are extremely different depending on where you live and which online platforms are enforcing jurisdictional laws to allow access to that sweepstakes casino. Familiarizing yourself with the differences of a state or area being open for sweepstakes (fully permitted), an area that is actively enforcing sweepstakes laws (active enforcement), and an area that has yet to ban sweepstakes (upcoming prohibition) will help you make better choices when it comes to your sweepstakes gaming options.  

Online sweepstakes casinos have their own rules and restrictions, so review the terms of service of every site you use regularly. With knowledge of the laws of your local jurisdiction and by abiding by all the rules of each sweepstakes casino site you play at, players can participate in sweepstakes gaming responsibly. 

FAQ 

Important disclaimer: 

Sweepspulse.com does not operate as a sweepstakes casino or as any type of gambling service. Sweepspulse.com provides informational content about the sweepstakes casino industry. Laws & operator policies can change at any time. Before participating in any sweepstakes casino platform, verify the current terms & conditions & confirm eligibility.