Sweepstakes Casinos: What They Are & How They Work

In a sweepstakes casino you can play slot and table games without putting any actual money in. This means that the games are free to play and don't require any purchases or deposits. 

However, they also offer an alternative gameplay option that gives us players the opportunity to win real cash prizes or gift cards if we want to.

The challenge for us real money casino lovers here in the US is that you can't play them (legally) in most states. Americans do love gambling – we're talking about a country where people spent over $53 billion on lottery tickets alone in 2023 (yes, billion with a B).

Before I discovered sweepstakes casinos, I watched friends jump through ridiculous hoops to play slots online. Some used VPNs and offshore sites (sketchy), while others drove across state lines just to place a few bets. 

But now we're living in the golden age of sweepstakes casinos – a clever workaround that lets you play casino games in almost every US state. These platforms have exploded in popularity, with millions of people discovering they can play slots, table games, and poker without technically "gambling" at all.

Now the biggest hurdle isn't finding a place to play – it's understanding how the heck these sweepstakes casinos actually work!

What exactly is a sweepstakes casino?

The short answer: Sweepstakes casinos operate under sweepstakes law, not gambling law. 

Traditional gambling means you deposit money, wager it directly, and either win or lose real cash. Sweepstakes casinos instead use a dual-currency system that separates the "purchase" from the "prize".

Think of it like Chuck E. Cheese for adults. You buy tokens (that can't be cashed out), play games with them, win tickets, and then redeem those tickets for prizes. Except in this case, the prizes can include actual cash!

Gold coins vs. sweeps coins

Every sweepstakes casino uses some version of a two-currency model, though they might use different names. 

Here is a breakdown of the standard system:

"Gold coins" are just for fun

Gold Coins are the play money side of sweepstakes casinos. 

Here's what you need to know:

• You can purchase gold coins directly with real money
• You CANNOT cash out gold coins or redeem them for real value
• They're exclusively for entertainment purposes
• Gold coin games are identical to the sweeps coin games but don't offer real prizes
• They often come in massive quantities (like 100,000 coins for $10) to make you feel rich :-)

For example, at Chumba Casino, you can buy a gold coin package that includes "FREE bonus sweeps coins" – see what they did there? It's not technically purchasing the valuable currency; it is getting a "free bonus" with my entertainment purchase. 

"Sweeps coins" are like a real currency

Sweeps coins (sometimes called sweepstakes coins, SC, or other variations) are where the real action happens:

• You NEVER directly buy sweeps coins (that would be gambling!)
• You receive them as bonuses with gold coin purchases
• You can also get them through free mail-in offers (more on that later)
• They can be redeemed for real cash prizes after meeting playthrough requirements
• They typically have a 1:1 value ratio with US dollars when redeemed

The first time I redeemed sweeps coins for actual cash, I was surprised when the money showed up in my bank account. 

How sweepstakes is not gambling

You might be wondering, "how is this not just gambling with extra steps?" 

Good question. The answer comes down to three key requirements that sweepstakes casinos follow religiously:

1. No purchase is necessary. Every sweepstakes casino MUST offer a free way to obtain the valuable currency. This is why they all have those mail-in offers where you can send a handwritten request to receive free Sweeps Coins. Does anyone actually do this? Yes, surprisingly! I tried it once just to see if it worked, and sure enough, two weeks later I received my free Sweeps Coins.
2. Separation of purchase. You're never directly purchasing the valuable currency that can be redeemed for prizes. You're buying entertainment coins, and getting the valuable ones as a "free bonus." This distinction is crucial legally.
3. Available in most states. Because they operate under sweepstakes law, these casinos are available in 49 states although this is changing slowly with some states starting to regulate this market too, little by little. 

Sweepstakes casinos worth checking

If you're ready to give sweepstakes casinos a try, here are some of the big players in the space:

I personally started with Chumba because it had the most straightforward redemption process, but I've played them all at this point. 

Like regular sportsbooks, there's no reason to commit to just one – sign up for several and collect all the welcome bonuses!

How to get started with sweepstakes casinos

Here's how to jump into the world of sweepstakes gaming:

#1 Choose a platform and create an account

Most sweepstakes casinos require basic information like name, email, and address (they need to verify you're in an eligible state). Some may require ID verification before redemption to prevent fraud and ensure you're of legal age.

#2 Claim your welcome bonus

Nearly every sweepstakes casino offers free gold coins and sweeps coins just for signing up. These free bonuses are a great way to test the platform before making any purchases.

#3 Understand the redemption requirements

Before you can cash out SCs, you'll typically need to meet a playthrough requirement (usually 1x, meaning you need to wager the amount once). This is much lower than traditional casino bonus requirements!

#4 Play and redeem

Once you've met the requirements, you can typically redeem your SCs for gift cards or direct bank transfers, usually with a minimum redemption amount of around 10-100 SCs ($10-$100).

The first time I redeemed, I was asked to verify my identity with a photo ID and a utility bill. Don't be alarmed – this is standard procedure and protects both you and the platform.

Are sweepstakes casinos worth it?

As someone who's played at traditional online casinos in regulated states and sweepstakes casinos, I can tell you there are pros and cons to the sweepstakes model.

For most Americans who don't live in New Jersey, Michigan, Pennsylvania, or the handful of other states with legal online casinos, sweepstakes casinos are honestly the best option out there. They're legitimate, safe, and most importantly – they actually pay out when you win.

Just remember – like any form of gaming involving money, play responsibly and only use funds you can afford to lose on those GC packages!