State bans are carving out a changing landscape for the US market that Canada navigates differently; here’s what you need to know.
Sweepstakes casinos continue to thrive despite the turbulence. Eilers & Krejcik Gaming’s forecast for 2026 anticipates US$6.6 billion in net revenue for the US industry (up 9%), even with California and New York currently offline. This raises two questions about the mechanics and the jurisdiction.
How Sweeps Coins Work
Within every sweepstakes casino there are two virtual currencies. Gold Coins are for show, having no cash value – Sweeps Coins are the winning currency. These can be exchanged for cash or gift cards once you accumulate enough of them. Usually, there is a threshold (50 to 100 SC) and a playthrough (1x). You never need to buy either currency. Daily logins or a mailed request can provide free SC, with coin packages as an optional extra.
That is the skeleton of the model; it is also why many argue that these sites are not violating gambling laws. It is a hot topic with regulators.
US Jurisdiction
Laws shaping the sweepstakes industry are state-specific and changing rapidly. California’s AB 831, which bans sweepstakes casinos, took effect on January 1, 2026. Bans have been in place in Indiana since July 1 and in Louisiana since August 1; Oklahoma’s follows on November 1. Pennsylvania’s legislature is currently considering HB 2801.
Enforcement has intensified as well. In August, Florida’s attorney general filed a lawsuit against two major operators. And in September, one of them agreed to a US$8 million settlement with New York’s attorney general.
Opinions on the matter are divided. The American Gaming Association (which represents real-money casinos) released a survey in July 2025, that showed 9 out of 10 sweepstakes players do consider the activity to be gambling. The Social Gaming Leadership Alliance (which represents sweepstakes operators) takes a different view, arguing for regulation rather than outright bans.
Reviewing a Site Before Playing
When regulations change rapidly, an up-to-date reference is essential. The Casino Guru website features a continually updated page, dedicated to sweepstakes casinos in the US. It lists 38 operators, each with a Safety Index score out of 10 (the top ten range from 8.0 to 9.7) and a brief summary of pros and cons.You’ll find a table to compare sweepstakes legality in each state, with 17 states marked as banned or restricted at the time of writing. A timeline recaps the changes in legislation, newest first.
Why is it useful? The guides present the basics in accessible language, explaining such concepts as Gold Coins and Sweeps Coins, along with the redemption process. The latter is covered in more detail in the payout section. It notes that gift cards often arrive within 24 hours, while bank transfers can take 2 to 5 business days to process. In case of a dispute, the complaints section offers free arbitration; according to Casino Guru, it has helped recover over US$50 million in contested funds.
That is the value of this source for you as a Canadian curious about the US market: a clear understanding of how sweepstakes casinos work, along with safety scores and pros and cons for each site. The page is aimed at a US audience, so check each operator’s own terms to see whether Canadians can play.
Playing From Canada
Under the Criminal Code, provinces oversee regulated forms of gambling. As sweepstakes casinos market themselves as promotional contests offering free entry, they exist outside of the aforementioned framework. The Competition Act further governs sweepstakes contests and their prizes. The legal standing of sweepstakes casinos is less clear than that of real-money ones. This information is not a substitute for legal advice. Availability is a mixed bag, with some operators turning away players in Ontario or Quebec.
Regulators are interested in player habits as well. An Ipsos survey published by Ontario’s gaming regulator in May found that 91.1% of Ontario players who gambled online in the past quarter used a regulated platform. That compares with 83.7% a year earlier. Only 8.9% used unregulated sites exclusively. The regulator warns that such platforms do not guarantee player protections or information security.
Alberta’s transition period ended on October 13, so unlicensed sites can no longer accept bets from Albertans. The regulated iGaming market now accommodates 29 approved operators across 50 brands. Outside of North America, European regulators are working with Google on a list of legal operators that aims to make illegal providers harder to find.
Good Practices
A few practices are worth adopting:
- Always read the fine print! This includes the redemption and withdrawal terms in particular, including the minimum amount and playthrough.
- Verify your identity early, to avoid KYC delays when requesting your first withdrawal.
- Set a limit on the number of coins you are willing to purchase, in any given session.
- Use limit-setting tools where a site offers them. Among Canadians who bet on sports in the past year, 46% have used at least one responsible gambling tool, according to the Angus Reid Institute, with deposit limits the most common at 20%.
- Use a state table to verify the legality in each state, as it changes regularly.
Lastly, and most importantly of all: if the fun stops being fun, reach out to your province’s problem gambling helpline, which can point you toward support.
