State legislatures, arbitration courts, civil litigation courts, and private homes across America are answering whether sweepstakes casinos are safe. That question involves sweepstakes casino licensing, but also player choices.
Below, we discuss whether sweepstakes casinos are licensed and whether they comply with state and federal law. We also discuss whether sweepstakes casinos consider player protection when setting up their games.
Finally, we discuss the difference between sweepstakes casinos and social casinos, and whether either type of gaming is legit. So keep reading for our sweepstakes casino licensing and compliance guide.
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Sweepstakes casinos are not licensed or regulated as gambling operators by US state gaming commissions. Instead, they operate under a combination of Federal Trade Commission (FTC) guidelines and state promotional sweepstakes laws.
Because they use a dual-currency system, they avoid the traditional need for state licensing. Dual-currency refers to the combination of Gold Coins, used to keep score for pure entertainment, and Sweeps Coins, which can be redeemed for real-money prizes.
What are promotional sweepstakes laws?
Traditional gambling has three components: prize, chance, and consideration. A prize is the reward, while chance means the game does not involve a substantial element of skill.
Consideration is the requirement to spend money or risk something of value to enter the contest. If operators eliminate one of the three components of gambling, they are not considered gambling.
Promotional sweepstakes remain legal because they eliminate consideration. Players do not have to pay to play. Instead, they have to offer an alternative method of entry (AMOE) into the contest.
How the alternative method of entry (AMOE) works
The AMOE rules allow players to receive Sweeps Coins through a mail-in request. Traditional sweepstakes contests give away prizes when you make a purchase at McDonald’s or buy a 12-pack of Pepsi.
These same contests have a mail-in rule, allowing people to contact the home office for more chances to win without making a purchase. Online sweepstakes casinos do the same.
Every sweepstakes casino offers its own version of the AMOE mechanic. They post a mailing address for mail-in requests on their terms and conditions page or sweepstakes rules page.
Many have a tool where players click to receive a unique code to add to their AMOE request. Generally, they pay out two to five Sweeps Coins when the player makes a proper request.
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Sweepstakes casino compliance
Around the year 2012, when Chumba Casino first launched, most states had similar sweepstakes casino laws. Since then, many states have amended their laws to target dual-currency rules.
Lawmakers in these states have successfully argued that sweepstakes casinos constitute gambling, but they technically get around existing laws. So they ban sites that use two or more virtual currencies for casino games.
Third-party partners of sweepstakes casino operators
California’s sweepstakes casino ban was a watershed moment for the industry. The Golden State’s law did not target only sweepstakes casino operators, but also the third-party partners of the sweepstakes sites.
That included geolocation services, platform software designers, game providers, and payment processors. It also included advertisers, including affiliates, social media influencers, and celebrity endorsers.
State leaders’ other player protection measures
Other states have not gone that far. Instead, their gambling commission or state attorney general sends cease-and-desist letters to operators demanding that they exit the state. In states like Kentucky and Florida, the state AG sues certain sweepstakes casino operators.
Florida even sent cease-and-desist orders to Google, Facebook (Meta), TikTok, and other tech companies that serve ads. Under this reasoning, Google and the social media companies serve a role not unlike affiliates and influencers. The tech companies ignored a deadline to comply.
As for sweepstakes casino lawsuits, most are not filed by state officials. Instead, private individuals file class-action lawsuits, claiming that sweepstakes casinos are banned by their state and they should receive a refund for losses plus damages.
In most cases, binding arbitration decides whether player protection outweighs a player’s agreement to a site’s terms of use. Many cases in 2026 first involve plaintiffs trying to remove binding arbitration clauses from the terms of use so they can have the case decided in civil court.
At the heart of these decisions is whether social casinos are legit.
Do sweepstakes casinos offer fair games?
Are those contests legal in the state in which they took place?
Are sweepstakes casinos safe for the players?
Each case has its own details. For instance, one case in Northern California involves spouses of sweepstakes casino players who try to avoid binding arbitration by claiming they never agreed to terms for which they are financially responsible.
Are sweepstakes casinos safe?
Which brings us to the question of whether sweepstakes casinos are safe. Whether the state where a player resides considers sweepstakes casinos gambling or not, players should treat them as gambling. They should play responsibly.
In states where sweepstakes casinos are banned, players can play at social casinos. These have a single currency system: Gold Coins.
Social casinos give a certain number of Gold Coins away through sign-up bonuses, daily log-in rewards, social media giveaways, email promotions, and AMOE requests. Players can even buy Gold Coins on a social casino site.
However, they can’t redeem those Gold Coins for real-world prizes. From day one, it’s clear it’s a play-for-fun site. But players should know they can still spend a lot of money on social casino sites if they buy Gold Coins for the fun of the game.
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Reputation for player safety and fair terms of use
Sweepstakes casino sites that develop a reputation for safety and fairness become popular over time. Sites receive Trustpilot reviews, so players can see whether others believe the site is fair and safe.
Trustpilot reviews of sweepstakes casinos point out a site’s technical issues, the effectiveness of its apps, and how fun and varied its games are. But these reviews go further. If a site is slow to pay, refuses to pay based on one-sided terms, or has suspicious winning streaks, then players announce them in their reviews.
Reddit threads dedicated to certain sweepstakes sites offer similar feedback. These tend to discuss a site’s limitations, drawbacks, unfair terms, technical problems, or abuses.
As a result, sites that build a strong reputation get ahead in the industry. That’s one reason Crown Coins Casino surpassed Chumba Casino in online searches in the summer of 2026. It has lower redemption requirements, better games, and a reputation for fair play.
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