Free-to-Play Social Casinos in the U.S.: What’s Legal, What Isn’t “Social casino,” “sweepstakes casino,” “free-to-play with prizes” — different labels, same question: is it legal where you live? The model often tries to avoid being treated as illegal gambling by offering a no-purchase-necessary way to participate and win, plus clear disclosures about odds and prizes. That approach aligns with long-standing consumer-protection principles for sweepstakes (FTC sweepstakes & prize promotions). The legal hinge: removing “consideration” Classic gambling is typically analyzed as prize + chance + consideration. Social/sweepstakes casinos try to remove “consideration” by providing a genuine free-entry route and by not implying that paying increases the odds of winning. The FTC’s published materials emphasize truthful advertising and clear, nearby disclosures for promotions (FTC press release (2019)). Payments compliance sits under the Unlawful Internet Gambling Enforcement Act (UIGEA), which targets processing payments tied to unlawful internet gambling. Enforcement guidance appears in official federal sources (Federal Reserve final-rule announcement). U.S. Sweepstakes Casino Legal Status Analyzer Current Legal Status of Social/Sweepstakes Casinos Across the U.S. (As of 2026) Legend: Red: Explicit Prohibition/Enforcement Yellow: Ambiguous/Grey Area Green: Public Operation Without Challenge Legal Status Summary Table (50 States + D.C.) State Status Reason / Evidence Alabama Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Alaska Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Arizona Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Arkansas Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. California Red AB 831 was signed into law, explicitly banning online sweepstakes gaming. Full ban effective January 2026; operators expected to cease operations during 2025. Colorado Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Connecticut Yellow State has legal, regulated online casino (iGaming), which can create legal ambiguity or regulatory pressure for the sweepstakes model. Delaware Yellow State has legal, regulated online casino (iGaming), which can create legal ambiguity or regulatory pressure for the sweepstakes model. District of Columbia (D.C.) Green While real-money online casino gaming is illegal, sweepstakes and social gaming sites are generally available for play. Florida Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Georgia Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Hawaii Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Idaho Red Explicitly listed by operators as a restricted state due to existing conservative gambling policies. Illinois Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Indiana Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Iowa Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Kansas Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Kentucky Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Louisiana Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Maine Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Maryland Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Massachusetts Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Michigan Red The Michigan Gaming Control Board (MGCB) issued multiple cease-and-desist letters (e.g., 19 in July 2025) to sweepstakes-based operators, forcing a market exit. Minnesota Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Mississippi Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Missouri Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Montana Red Officially passed a bill (e.g., HB 354) explicitly prohibiting online sweepstakes betting in 2025. Nebraska Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Nevada Red Officially passed a bill explicitly prohibiting online sweepstakes betting in 2025, largely to protect its land-based casino industry. New Hampshire Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. New Jersey Yellow State has legal, regulated online casino (iGaming), and has been mentioned as a state possibly moving to ban sweepstakes gaming soon. New Mexico Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. New York Red State legislature passed a bill banning online sweepstakes games; Attorney General issued cease-and-desist notices to operators in 2025. North Carolina Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. North Dakota Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Ohio Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Oklahoma Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Oregon Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Pennsylvania Green State has legal, regulated online casino (iGaming), but sweepstakes operators generally continue to serve the market without specific prohibition. Rhode Island Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. South Carolina Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. South Dakota Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Tennessee Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Texas Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Utah Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Vermont Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Virginia Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Washington Red State law explicitly prohibits the sweepstakes casino model (often cited as the strictest in the U.S.). West Virginia Green State has legal, regulated online casino (iGaming), but sweepstakes operators generally continue to serve the market without specific prohibition. Wisconsin Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Wyoming Green No specific prohibition or enforcement action known; operates under general U.S. sweepstakes law. Understanding Sweepstakes Casino Legal Status The landscape of online sweepstakes and social casinos in the United States is dynamic and heavily influenced by state-level gambling legislation. Unlike traditional real-money gambling (iGaming), which requires a financial risk or ‘consideration,’ the sweepstakes model relies on offering free entry to a sweepstakes (usually via mail-in requests or bonus coins) to provide cash prizes. This mechanism is designed to comply with U.S. sweepstakes laws. Key Legal Distinction: Consideration The primary legal argument revolves around the definition of illegal gambling, which typically requires three elements: prize, chance, and consideration (a purchase or fee). Sweepstakes casinos argue they remove the element of consideration by offering free entry methods, making them legally distinct from traditional gambling operations. Recent State Actions California (Red Status): The passage of AB 831 signals a significant shift, with the state explicitly targeting the sweepstakes model, regardless of the free entry component, due to concerns over consumer protection and revenue generation for regulated sectors. Michigan (Red Status): Enforcement actions by the MGCB indicate a regulatory posture that treats the social/sweepstakes model as illegal online gaming under existing state law. New Jersey & Delaware (Yellow Status): States with established regulated iGaming markets often exert pressure on unregulated competitors, creating a “yellow” area of uncertainty even if no explicit ban exists yet. It is important to consult local state laws and the terms and conditions of specific sweepstakes operators, as the market is subject to rapid legislative change.
