Texas sweepstakes casino laws currently allow Texas residents to play without restrictions. All of the major sweepstakes casinos accept play from Texas residents with no restrictions. Players can sign up and enjoy games using Gold Coins and Sweeps Coins, and later redeem the Sweeps Coins for gift cards and other prizes.
In the sections below, we’ll discuss current TX laws on sweepstakes casinos and where you can play. We’ll also discuss past bills concerning sweeps sites, and the outlook for players in case the next Texas AG tries to restrict access to sweepstakes casinos.
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Are Sweepstakes Sites Legal in Texas? Where You Can Play
Currently, Texas has no statewide laws or regulations that affect online sweepstakes sites. Therefore, both sweepstakes and social casinos operate without restriction in Texas.
In fact, every sweepstakes site operator is active in the Lonestart State. A proposed law in 2025 could have affected their status, though, which could have pushed players to the best social casinos in Texas as the next best alternative. Because they do not use the dual-currency system, social casino sites remain active in US states after sweepstakes casinos are banned.
Given that both social casinos and online sweepstakes are legal in Texas, players have no concerns about signing up, playing a full list of sweepstakes casino games, and redeeming their SC for prizes. Any risk of these operators leaving the state or eliminating Sweeps Coins prize redemptions from standard gameplay rules is left to 2027 and beyond, should any new legislation pass.
Senate Bill 517 and Legal Online Sweepstakes Casinos in TX
Last year, the Texas legislature debated a bill that could have changed the status quo. On December 2, 2024, Texas Senator Mayes Middleton filed SB 517 in the Senate for the upcoming 89th Texas Legislative Session. The bill did not directly target online sweepstakes casinos.
Instead, it was designed to shut down brick-and-mortar game rooms (mostly poker clubs) and a type of slot machine called “eight-liners” that operate in Texas gas stations and convenience centers.
However, SB 517 would have redefined what a “thing of value” is under TX gambling laws, which could allow the state attorney general to question whether online sweepstakes are legal in Texas.
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What is a thing of value under Texas law?
Specifically, it would have made gift cards and other “representations of value” illegal if they were used to redeem prizes related to gambling activities.
Under the current sweepstakes casinos model, players use a dual currency system. Gold Coins have no real-world value and cannot be redeemed for prizes. However, free Sweepstakes Coins, which players receive when they buy Gold Coins, can be redeemed for gift cards, cash, or other prizes.
Gambling laws in the State of Texas refer to “consideration” as a “thing of value” received when a player wins on a game of chance. Therefore, changing the language of Texas gambling law could have a profound effect on the legality of online sweepstakes in Texas.
What happened to SB 517?
Senate Bill is a dead letter at the moment. On May 8, 2025, the Texas Senate voted 31-0 to approve the bill. It reached the Texas House on the same date, but the House never voted on the bill, so it died when the session ended on June 2, 2025.
Texas only has state legislative sessions in odd-numbered years, so that effectively killed any possibility that Texas gambling laws would change until 2027. Governor Greg Abbott did call a special session of the legislature in the summer of 2025, but it involved votes on Texas flooding, redistricting, and other agenda items.
Will Texas sweepstakes laws change in 2027?
Sen. Mayes Middleton is not running for reelection to the Texas Senate. Instead, he is running to replace Ken Paxton as the next Texas Attorney General. He won a primary run-off against Chip Roy to receive the Republican nomination for Texas AG.
On November 3, 2026, Mayes Middleton will face Democratic State Senator Nathan Johnson in the general election for Texas Attorney General. No Republican has lost a statewide vote for office in Texas for over 30 years, so Mayes Middleton is the favorite to be the next Texas Attorney General.
Someone else will need to introduce a bill similar to SB 517 in 2027, but a Texas Attorney General could take actions of their own that might affect sweepstakes casinos in the Lone Star State.
Neither Mayes Middleton nor any other Texas politician has indicated they will target the sweepstakes casino industry, but changing the law could open the door to such actions.
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Texas Online Sweepstakes Casino Regulations
While sweepstakes casino sites are active in Texas, there are a couple ways that it could be affected by different actors or regulatory groups:
Texas Attorney General
Any Texas Attorney General has several tools they could use to impact gambling activities if the language of the law changed. If a new version of SB 517 passed in the 2027 legislative session, then the AG could issue an opinion on what a “thing of value” is.
Such an opinion would differ on whether certain models constitute a thing of value, so the dual-currency system might be classified as offering gambling prizes. While an opinion would not be legally binding, Texas courts have often treated AG opinions as persuasive legal authority.
Consumer Protection Division Cease-and-Desists
Also, the Consumer Protection Division of the AG’s office might issue cease-and-desist letters to operators, like the ones sent in Illinois, Minnesota, and other states. Again, these would not be legally binding, but could threaten legal action.
The AG has only limited direct criminal prosecution authority, but could coordinate with local district attorneys on such cases. He could also coordinate with law firms that file class-action lawsuits against online sweepstakes operators, as has happened in Kentucky, Maryland, Michigan, and other states.
In other states, these have caused sweepstakes sites to self-exclude to avoid mounting legal fees.
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