Sweepstakes casinos look a lot like real money online casinos. Same slots, same table games, same look and feel and a lot of the time, even the same game companies behind them. Underneath, sweepstakes casinos USA and real money online casinos work completely differently though and you probably have wondered... Show more
Sweepstakes casinos look a lot like real money online casinos. Same slots, same table games, same look and feel and a lot of the time, even the same game companies behind them.
Underneath, sweepstakes casinos USA and real money online casinos work completely differently though and you probably have wondered how sweepstakes casinos can give real prizes in states where online gambling is illegal. If so, you are about to find out.
It’s not some sneaky loophole. It’s actually a legal setup based on US sweepstakes laws that have been around for decades. That legal setup affects everything, from how the two types of coins work, how prizes get paid out to why you can always play for free if you want to.
This guide gives you more than just definitions. We’ll walk you through the legal stuff, how sweepstakes casinos make money, how the two currencies work, every way to earn Sweeps Coins, how the games actually play and exactly what happens when you cash out. Show less
Kayode Kehinde Casino & iGaming Expert 
Emmanuella Oluwafemi iGaming Content Manager Everything about how sweepstakes casinos work comes down to one simple legal idea: under US law, a prize contest is not gambling as long as you don’t have to pay to enter.
There are three key elements to gambling: you pay to play, the outcome is based on chance and you can win something of value. Take away any one part and it’s not gambling anymore. Sweepstakes casinos take away the pay to play part. You can always play for free. That’s why they’re not legally considered gambling, even though they look and feel like a casino.
For this to work, two rules have to be followed:
Why this matters to you as a player: This setup is the reason sweepstakes casinos are legal in over 45 states, even where regular online gambling sites aren’t. It also helps you spot the good sites. If a platform doesn’t offer a real free way to play, they’re not following the rules, so you should stay away from them.
A reasonable question once you understand the model: if players can earn and redeem Sweeps Coins for free, how do these platforms sustain themselves?
Gold Coins are the answer. Sweepstakes casino sites earn the majority of their income from selling Gold Coin packages. Gold Coins are simply a way to have fun. They don’t have any cash value. Players purchase Gold Coins because they enjoy playing the games and want to continue to do so. Players receive Sweeps Coins as a free bonus when purchasing Gold Coins, but Sweeps Coins are never directly for sale. The business model is simple: the site sells entertainment and Sweeps Coins are the incentive that keeps players coming back.
Sweepstakes casinos also make money from affiliate deals and partnerships with game developers, but Gold Coin sales are the main source of income.
By providing better experiences through game development and larger bonus packages, more and more Gold Coin packages will be sold.
At the heart of every sweepstakes casino is something called the dual currency system. Two currencies, each with a different purpose. One currency (the Gold Coins) is just for fun, while the other one (Sweeps Coins) can turn into real prizes. They work together to make the whole thing run and also to keep it legal.
Gold Coins are the main currency for playing games. You can buy them or earn them through daily logins, promotions and other events. The more you play, the more you get. Do keep in mind that Gold Coins can’t be redeemed for cash, they are just for fun.
The currency that you use to earn prizes is Sweeps Coins. In order to avoid converting to a wager and compromising the legal model to win a prize, Sweeps Coins can never be purchased directly. Rather, they are given away when you buy Gold Coins, or through:
The average Sweeps Coins redemption value is 1 SC = $1, but it can vary by platform. Once your Sweeps Coins have reached the minimum redemption limit, you can redeem them for actual prizes.
Important note: Some platforms make you wager your Sweeps Coins at least once before you can cash out. This is called a playthrough requirement. For example, if you have 10 SC with a 1x playthrough, you need to place $10 in bets before you can redeem them. Not all sites do this. Check the terms before you start building your balance.
Both Gold Coins and Sweeps Coins let you play the same games on the same platform. There’s no separate set of games just for Sweeps Coins. You’re playing the same slots, blackjack tables and video poker titles, no matter which currency you’re using. The difference is simply in what happens when you win or lose:
Most players use both. For example, they use Gold Coins to try out the new games, test different strategies or play casually and they switch to Sweeps Coins when they have played the game and know it well and when they’re actively trying to build up a balance they can redeem.
There are more ways to earn Sweeps Coins (SC) than most players initially realize. Here’s a breakdown of every method available across the industry.
Usually, the easiest way to get Sweeps Coins is to buy a Gold Coin (GC) package that comes with Sweeps Coins as a bonus (for example, you may buy an offer that has 1,000,000 GC and 30 bonus SC for $9.99). While SC are not purchased directly because they are promotional bonuses, this is one of the easiest and quickest methods to accumulate a significant amount of SC. Purchasing larger gold packages will provide you with proportionately more SC, making these packages a better value for those who plan to redeem their SC for prizes.
This is the free entry method that the law requires, and every legitimate sweepstakes casino has to offer it. Here’s how it works:
The amount you get through mail in is usually modest (between 1 and 10 Sweeps Coins depending on the platform) and most casinos limit requests to one per household per day or per week. It’s not fast, but it’s a real option and it’s the method that makes playing for free genuinely possible for players who don’t want to spend any money.
Every major sweepstakes casino gives you Sweeps Coins as part of its welcome offer when you sign up. The amounts vary a lot. Some platforms give just 2 to 5 Sweeps Coins when you register, while others offer more generous deals. These welcome Sweeps Coins usually require you to verify your email or phone number to unlock them and sometimes you have to play through them a certain number of times before you can redeem any winnings. They’re enough to get a feel for how Sweeps Coins gameplay works without spending any money, though they’re typically not enough to reach the minimum needed for a redemption on their own.
Many platforms give you bonus coins just for showing up regularly. Sometimes offering small Sweeps Coins amounts along with larger Gold Coin bonuses. These are small on their own, often just fractions of a Sweeps Coin, but for players who log in consistently, they add up in a meaningful way over time. Some platforms offer bigger rewards the longer you keep a daily streak going, making it worth it to check in day after day.
Sweepstakes casinos run regular Sweeps Coins promotions through email offers, social media giveaways, seasonal events and tournaments right on the platform. Some platforms have leaderboard competitions where the top players share a pool of Sweeps Coins as prizes. Others run special limited time events where you can earn Sweeps Coins at a faster rate than usual. Following a platform’s social media accounts and signing up for their emails is the best way to catch these opportunities when they come up.
The game libraries at larger sweepstakes casinos have grown a lot and now offer as much variety as many mid tier licensed online casinos. Here’s what you’ll typically find:
It’s critical to realize this. RTP and house edge are equally relevant to Sweeps Coins play as they would be in any legitimate, regulated, real money casino. Virtual currency makes no difference in game payouts. All other known statistical factors remain constant.
You can build up Sweeps Coins by playing, but the house edge is always there. Sweeps Coins aren’t a way to make quick money, they’re entertainment with a chance to win.
Some sweepstakes casinos publish RTP rates for their games but many don’t. Where published, they’re typically in the 94 – 97% range for slots, consistent with what you’d find at a licensed online casino.
Switching between currencies is easy. Most platforms let you pick the currency right from the game lobby or inside the game itself. A practical approach is to try out new games and test different bet sizes using Gold Coins, then switch to Sweeps Coins once you know the game well and are intentionally trying to build up a balance you can redeem. This saves your Sweeps Coins for purposeful play instead of using them up while you’re still learning a new game.
Signing up is easy and you don’t need to enter a payment method. You simply give your name, email, birthday and home address. Platforms use this to check that you’re old enough (18 or 21 depending on the site) and that you live in a state where they’re legal. Most also require email verification before your account is active. The whole thing usually takes less than five minutes.
Before you cash out for the first time, you have to verify your identity. You’d need to upload a government ID (driver’s license or passport) and proof of address (a utility bill or bank statement from the last 90 days). Most sites finish reviewing your documents within a few hours to a couple of days.
It’s advisable to verify your identity once you create your account, so everything is set up. Most people wait until they want to cash out, then realize they have to wait. That’s the number one reason first time redemptions get delayed.
The redemption process is where the sweepstakes model delivers its real value. Here’s exactly how it works.
Step 1 – Hit the Minimum Threshold
Most platforms that offer you to cash out using a form of currency will have a minimum balance in Sweeps Coins before you can request your cash out. This range is usually from $5 to $25 depending on the casino, so if you do not have enough coins to cash out, simply continue to play or use your free mail in requests until you reach the minimum threshold to cash out.
Step 2 – Submit a Redemption Request
When your KYC is approved and you have reached the minimum amount, you need to go to the cashier section. Select your withdrawal method (bank transfer, echeck, etc). The methods differ depending on your site. After you have selected your withdrawal method, enter your information and confirm your request. The Sweeps Coins will be deducted from your balance and your withdrawal will be added to the casino’s review queue for processing.
Step 3 – Review and Approval
Before a casino pays you out, they review your redemption. They check for fraud and make sure everything is okay. It’s how they keep the site safe for everyone. Review times vary. Some sites approve in a few hours, while others take up to 72 hours. Your first redemption usually takes longer, because they look at it more closely since it’s your first time. After that, it’s usually faster.
Step 4 – Prize Delivery
Once approved, your prize gets sent out. Timelines vary by method.
| Cash Out Method | Typical Time |
| Bank transfer (ACH) | 3 – 5 business days |
| Gift cards (digital) | 24 – 72 hours |
| Cryptocurrency | Under 24 hours |
| Check by mail | 7 – 14 business days |
Not all sweepstakes casinos make you play through Sweeps Coins before cashing out, but enough do that, so it’s worth knowing about upfront.
A playthrough requirement is an indicator of how many times you must wager your Sweeps Coins prior to them being eligible for withdrawal. In general, a 1x playthrough on 10 SC means you have to bet $10 before you can withdraw those coins. If you have a 2x playthrough requirement, you would have to bet $20, etc. Coins that you win through gameplay using Sweeps Coins usually aren’t subject to a playthrough requirement, however this varies by platform and promotion.
Important note A welcome bonus of 5 SC with 1x playthrough means you can’t cash it out right away, you have to play through that amount first. Real online casinos do the same thing with bonuses. Always check the terms before assuming you can redeem.
Every sweepstakes casino works the same way in theory, but in reality, the details vary from site to site. There are two currencies – Gold Coins and Sweeps Coins. Gold Coins are purely for entertainment purposes. Sweeps Coins are prize eligible. There are free ways to play.
Here is what’s different:
How many Sweeps Coins you can earn
Some sites are generous, while others are not.
The minimum to cash out
Some let you redeem at $5. Others set the bar at $25 or higher.
Payout options
Bank transfer, crypto, echeck, etc. Not every site offers every option.
Playthrough rules
Some sites make you wager your Sweeps Coins before cashing out, while others don’t.
Game selection
Smaller sites might have a few hundred games. Larger ones have thousands.
Payout speed
Some pay in hours, while others take a few days.
The best sites give you solid Sweeps Coins earning potential, pay out quickly and reliably and offer plenty of games to play. Our reviews compare all these details, so you can find the right fit for you.
People often fail to realize that a sweepstakes casino model is considerably more intentionally constructed than most people would think. This type of gaming is not a trick or a loophole, it’s an actual legal framework put in place for playing online based on the established rules that prize contests have been operating under within the United States for many years. It makes sense once you comprehend the dual currency system, as well as what it takes to “earn” and how “redemptions” work.
Three main things to remember about Sweeps Coins are you can get them for free, the house edge applies when playing, just like a real casino and some sites have playthrough requirements, so check before you play.
Complete your KYC verification early, as it makes cashing out much smoother. Great sweepstakes casinos pay out reliably and you get casino style entertainment with a shot at real prizes, with no cost to play.
Our casino reviews break down every major platform and their game libraries, Sweeps Coins earning rates, redemption speed and more. Find out the right fit for you and get started today.
Unlock FREE, Exclusive Bonuses delivered straight to you – only from SweepsPulse.
This website requires you to be 21 years or older to enter
← swipe to see more →
