How do sweepstakes casinos work?

What is the difference between gold coins and sweeps coins?

Redemption is the difference. Names vary by site, but the model is the same.

Why do sweepstakes casinos use two coins?

Operators use the structure to avoid the rules that apply to gambling, according to the law firm Stinson. The argument is that no purchase is required, because sweeps coins can be earned free, as with a mail-in entry. Critics say the line between this and illegal gambling is thin.

What have regulators said about the model?

New York's Attorney General rejected the argument in practice. Her office found that players could get sweeps coins much as they might buy chips in a casino, at about one coin per dollar spent, and some players in New York lost sums in the tens of thousands of dollars. VGW agreed to pay $8 million, as announced on September 9, 2026.

California's AB 831 targets the same structure: a purchased coin that cannot be redeemed, a second coin that can, games that simulate gambling, and cash or cash-equivalent awards. It does not ban ordinary promotional sweepstakes tied to real product sales, according to ZwillGen.

What should you check before playing?

Check three things:

• Your state page, because the model is banned or under action in a growing number of states.
• The site's redemption terms, including minimums, identity checks and processing times.
• Whether the site is available where you are. Operators have left states such as California as laws took effect.