What Are Sweepstakes Casinos?

Sweepstakes casinos have taken North America by storm. Offering a unique model that blends free gameplay with real-money winnings, they present a legal workaround to traditional gambling laws in many US states. But how do they work—and can players from Europe take part?

What Is a Sweepstakes Casino?

Sweepstakes casinos are online platforms that offer casino-style games (slots, blackjack, roulette, etc.) using virtual currencies instead of real money. The key difference from regular online casinos is that you don't need to make a deposit to win cash prizes.

Instead of using real currency, these sites operate using two virtual coins: Gold & Sweppes coins.

This model allows users to experience casino games legally—even in jurisdictions where traditional online gambling is prohibited.

How Do Sweepstakes Casinos Work?

Sweepstakes casinos operate through a dual-currency system:

• Gold Coins (GC): Used for standard play, with no monetary value. They are given freely or bought in packages. They’re used for entertainment only and cannot be exchanged for real money.
• Sweeps Coins (SC): Promotional coins that can be obtained for free or as a bonus and can be redeemed for real money once certain conditions are met. They can be obtained via:
  • Free daily login bonuses
  • Mail-in entries
  • Social media giveaways
  • Bonus offers with Gold Coin purchases (not sold directly)

Players use SC to play special games. Once a certain number of SC is won, they can be redeemed for real cash via bank transfer, cheque, or other methods.

This model meets the legal definition of a “sweepstakes” in the United States—because no purchase is necessary to win.

Why Is This Legal in the United States?

Under US federal and state laws, sweepstakes are legal as long as:

• There is no mandatory purchase to enter or win.
• The company provides a free alternative entry method.
• The rules are transparent.

Since sweepstakes casinos give users SC via free methods (such as sending a request by post), and don’t require real-money deposits for eligibility, they fall outside the traditional gambling regulations.

As a result, platforms like Chumba Casino, LuckyLand Slots, and Pulsz are accessible in nearly every US state—except Washington and Idaho.

Are Sweepstakes Casinos Only for US Players?

Yes, sweepstakes casinos are designed exclusively for US and Canadian residents (with some restrictions). To withdraw winnings, players must:

• Prove they reside in an eligible jurisdiction
• Pass KYC verification (ID, address, etc.)

European users are not permitted to register, play, or redeem prizes. Attempts to access via VPN or false details violate the terms of service and may result in bans or forfeiture of winnings.

Are Sweepstakes Casinos Legal in Europe?

In most European countries—including France, Germany, Spain, and the UK—any system that allows players to win real money is legally considered online gambling, regardless of the entry method.

This means:

• A gambling licence is required, even if users don’t deposit money.
• The “free entry” model used in the US does not exempt operators from regulatory obligations.

Currently, no sweepstakes casinos are licensed to operate in Europe, and promoting them without a local licence could be considered illegal.

In short: sweepstakes casinos are not legal in Europe under their current format.

Benefits of Sweepstakes Casinos

• No deposit needed to win real cash
• Legal in most of the US
• Ideal for beginners or casual players
• Free daily bonuses and special promotions
• Games include slots, blackjack, roulette, and more

Limitations and Drawbacks

• Only available to North American residents
• Real-money withdrawals require ID verification and proof of residence
• Withdrawal conditions (minimum thresholds, playthrough) can vary
• Game libraries may be smaller than traditional online casinos
• Not accessible from Europe or the UK

Popular Sweepstakes Casinos

Our opinion on this new type of game

Sweepstakes casinos offer a legal, innovative alternative to real-money gambling—but only for players in the United States and Canada. With no deposit required and the chance to win real cash, they appeal to casual players and gamblers alike.

However, players in Europe, the UK, and other jurisdictions are excluded due to strict online gambling laws. Until regulatory frameworks evolve, sweepstakes casinos will remain a North American phenomenon only.