Sweepstakes casinos offer players the thrill of gaming without actually wagering real money. Players purchase coin packages that include both game coins and sweepstakes coins, the latter of which can be redeemed for cash or prizes.
This setup allows these casinos to operate as promotional activities, not under gambling law, but regulators are quickly catching up.
In this article, Atlaslive examines how sweepstakes games have become one of the most controversial models of 2025 and whether they can survive increasingly stringent regulation.
New York has already issued suspension orders for 26 operators. Montana’s SB 555 banned all wagering and payments involving “currency,” effectively targeting sweepstakes platforms. Connecticut’s SB 1235 outright criminalized the model.
The industry defends itself by pointing to the “free entry” clause: as long as players can participate without payment, the model supposedly avoids gambling definitions.
However, when free participation is buried in the fine print, officials argue that the “consideration”—paying for a chance to win—is still present. The SPGA publicly condemned Montana’s ban, calling it a misunderstanding of the principles of promotional games.
Sweepstakes casinos generate revenue from coin purchases, but their confusing mechanics raise significant compliance risks: hidden redemption terms, underage players, slow payouts, and potential fraud.
To maintain credibility, responsible operators are introducing age verification, transparent prize rules, and fraud detection systems.
Ultimately, the sweepstakes model could be a gateway to new markets or a temporary loophole that regulators will soon close. In 2025, that line has never been thinner.
To learn more, read the full article from Atlaslive.
About Atlaslive
Atlaslive, formerly known as Atlas-IAC, underwent a rebranding campaign in May 2024. It is a B2B software development company specializing in creating a multifunctional and automated platform to optimize the workflow of sports betting and casino operators.
The core components of the Atlaslive Platform include a Sportsbook, Casino, Risk Management and Anti-Fraud Tools, CRM, Bonus Engine, Business Analytics, Payment Systems, and Retail Module. Follow the company on LinkedIn to stay up to date with the latest news in iGaming technology.