How Do They Work?

If you’ve ever seen talk of “Sweeps Coins” or “Gold Coins” and wondered whether sweepstakes casinos are legit, you’re not alone. In this article, I’ll walk you through what they are, how they work, why they’re legal (when done right), and what to look out for before signing up.

Table of content:

What is a sweepstake casino
Difference from traditional gambling
Two-currency system
State availability/legality
Prize redemtpions
Pros/Cons
Safety checklist
Free coins
Final word
FAQs

What Is a Sweepstakes Casino?

A sweepstakes casino is an online platform that lets you play casino-style games using virtual currencies instead of cash bets. The twist is that one of those currencies, typically called Sweeps Coins, can be redeemed for prizes (including cash or gift cards) once you meet the site’s conditions. The other currency — often called Gold Coins — is strictly for fun play and has no cash value.

That dual-currency model is the foundation of sweepstakes casinos.

Why They’re Not Classified as Gambling

In the U.S., gambling laws usually focus on three elements: prize, chance, and consideration (paying to enter). Sweepstakes casinos avoid being categorized as gambling because they remove the “consideration” requirement: there must always be a way to participate without paying. This is where the “no purchase necessary” rule comes in.

For example, most sites provide free daily bonuses or allow mail-in entries (called Alternate Methods of Entry, or AMOE). This satisfies consumer protection rules enforced by the FTC, USPS, and state attorneys general FTC guidance.

How the Two-Currency System Works

Here’s a breakdown of how sweepstakes casinos separate “fun play” from “prize play.”

Currency	Purpose	Can I Buy It?	Can I Redeem for Cash/Prizes?	How I Get It
Gold Coins	Standard gameplay (entertainment only)	Yes (optional)	No	Daily bonuses, promos, or optional purchases
Sweeps Coins	Sweepstakes entries (eligible for prize redemption)	Not directly (awarded free with Gold Coin bundles or AMOE)	Yes, if rules are met	Login bonuses, AMOE (mail-in), promos, bundled bonuses

Example: On Stake.us, the redeemable token is called Stake Cash, which you can only receive as free bonuses (e.g., bundled with Gold Coin purchases, daily login rewards, or promos). WowVegas works the same way, giving free Sweeps Coins as bonuses alongside Gold Coin purchases.

Legality and State Availability

The legal foundation is simple: a sweepstakes casino must allow me to enter without purchase. If a platform requires payment for prize-eligible play, that’s a red flag.

That said, availability changes. For instance, VGW (the operator of Chumba, LuckyLand, and Global Poker) stopped offering sweeps play in New Jersey in 2025, leaving only Gold Coin (non-redeemable) play there.

Common exclusions include Washington, Idaho, and Michigan, but I always check the site’s terms and conditions before signing up.

You can also check out our restricted states tool here.

How Prize Redemptions Work

Play games in sweepstakes mode using Sweeps Coins.
Win and build up a balance that meets the site’s minimum redemption threshold.
Complete KYC verification (ID check).
Redeem prizes, which may be sent as cash, crypto, or gift cards depending on the brand.

Redemptions are not instant: there are thresholds and processing times.

For a detailed breakdown on how the redemption process works, check out this guide.

Pros and Cons of Sweepstakes Casinos

Pros

I can play without risking real-money deposits.
There’s always a free-entry method (AMOE or daily promos).
Accessible in many states where traditional online casinos are restricted.

Cons

Redemption processes (KYC, thresholds) can feel slow.
Rules and state availability can change suddenly.
The two-currency system can be confusing for newcomers.

Safety Checklist Before Playing

Here’s my personal checklist to make sure I’m on a legit platform:

Confirm there’s a clear AMOE or daily free bonus.
Read the official rules/help center for Sweeps Coins redemption terms.
Check whether my state is included or excluded.
Be prepared to pass KYC before redeeming prizes.

You can also check out Funded Peaks Gold picks - casinos we trust.

How to Get Free Prize-Eligible Coins

Daily bonuses: Log in for free rewards.
Promotions: Social media giveaways or seasonal events.
Bundles: Buy Gold Coins and get Sweeps Coins free as a bonus.
AMOE: Mail-in entries or other listed no-purchase methods.

Final Word

Sweepstakes casinos are legal when they stick to the rules: no purchase necessary, clear AMOE, and transparent redemption terms. As long as I double-check availability in my state and understand the two-currency setup, they can be a fun and risk-limited way to play.