Sweepstakes have been a typical way corporations promote their services. You buy one product, and you earn a free entry to a large prize awarded randomly.

This model might sound simplistic and driven by purchases (or even repeat purchases), yet sweepstakes must abide by a number of rules to be legal. Some states also have specific rules in place for sweepstakes.

Since many of our readers engage with sweepstakes casinos, this page serves as a guide to what policies your chosen casino must abide by to be a legal sweepstakes and not an offshore gambling site.

We explain everything in turn, starting with the general sweeps rules before explaining their application on social gaming sites with prizes.

General Sweepstakes Rules

There are numerous considerations applicable to a sweepstakes promotion. The following make up the central ones:

• No purchase is required. The option to buy a product and receive free sweepstakes entries might be offered but shouldn’t be a requirement for participation.
• An alternative method of entry to the sweepstakes must be available to all.
• The eligibility criteria for participation and winning must be clearly stated.
• The chances of winning the sweepstakes must be explicitly stated.
• The rewards must be clearly outlined.
• All winners must be informed by the end of the sweepstakes, which must also be stated in the T&Cs.

An additional aspect applicable mainly to social gaming sites with sweepstakes prizes is the provision of responsible gaming tools. Social casinos like Chumba have been subjected to enormous fines for failing to provide relevant information and safety tools to participants. Some brands have also settled for mind-blowing settlements for walking a fine line regarding the no purchase requirement to play the games (offering limited free play opportunities).

State Limitations to Sweepstakes

Sweepstakes are available in all states. That’s in contrast to other types of prize-related events like casino gaming or lottery. The rules stated above make sweepstakes free contests and therefore subject to far more lenient regulations.

Having said that certain states have implemented laws explicitly restricting sweepstakes. New York and Florida restrict prizes from a single sweepstakes to $5,000.

Michigan is another state that has cracked down on social casino sites, requiring them to file for a proper iGaming license to operate. This change was introduced after a case tied to Golden Hearts Games mainly because online casinos are legal in MI, and sweepstakes affected their bottom line.

Idaho social casinos cannot offer sweepstakes prizes either.

In terms of the minimum age to participate, the typical limit is set at 18 with certain sweepstakes and states explicitly restricting access to participants who are 21+. Social casinos might also choose to restrict access in additional states, with Nevada, Wyoming, Kentucky, Utah, and Ohio regularly being off-limits.

Federal Regulations Surrounding Sweepstakes Casinos

With the sweepstakes rules and state limitations outlined above in mind, you might be wondering who actually oversees sweepstakes in the US. It heavily depends on the aspect in question, and the following bodies typically review all sweepstakes promotions, including social casinos:

• Federal Trade Commission (FTC) – verifies prizes, no purchase, and T&Cs meet the standards set out above.
• Federal Communications Commission (FCC) – checks that communications of the sweepstakes explicitly state the rules and eligibility criteria.
• United States Postal Service (USPS) – protects participants from scams, or at least strives for this.
• United States Department of Justice (DOJ) – enforces any wrongdoings reported by the above three Federal bodies.

Application on Social Casinos with Prizes

Joining a sweepstakes casino is a no-brainer, mainly due to the sweepstakes rules they must abide by.

• Sweepstakes casinos can be available in 47 states for 18+ players.
• They provide random games that can result in real cash prizes and tangible rewards.
• They are free to play and purchases are optional for participation.
• Unlike offshore gambling sites, sweepstakes casinos are regulated at a federal level.
• Sweeps coins expire within 60 to 90 days unless they are used.

Their dual currency model, games with official specs and randomized rewards, free play bonuses, and similarities to the ever-popular but heavily restricted online casinos make US sweepstakes casinos extremely fun, and legal.

Why Sweepstakes Rules Matter

SWC365 is committed to the social gaming space and we only promote sweepstakes casinos that comply with the sweeps rules described above and any additional legal requirements set out by the law. Our content is updated whenever a legal change occurs, as was recently the case with Michigan.

Joining a sweepstakes casino without understanding the sweeps rules is as dangerous as playing at illegal offshore casinos. Unless the social casino is transparent and compliant with the laws and regulations set out by the Government, we won’t recommend them and you should avoid them. By playing at legit sites, you have several bodies to turn to for help if any problems occur and several ways to play your favorite games for free!