Sweepstakes Casinos vs. No Deposit Bonuses: Free or Not?
If you consider yourself a recreational online casino player in the U.S., you’ve likely heard the term “sweepstakes casino.” If you haven’t, the overview below will get you up to speed on the basics and the pitfalls.
Sweepstakes Casinos — Why Now?
Online gambling has grown exponentially in recent years and has moved into the mainstream as acceptable adult online entertainment.
For decades, U.S. casino play was largely limited to those willing to send funds offshore to bet on sports or play games of chance. Things shifted in 2018 when the U.S. Supreme Court lifted the federal ban on sports betting and online gambling. Since then, sports betting has spread rapidly, with roughly 40 states legalizing retail and/or online sports wagering. Online casino gambling (iGaming) hasn’t kept pace—only seven states have legalized it:
- Connecticut
- Delaware
- Michigan
- New Jersey
- Pennsylvania
- Rhode Island
- West Virginia
That leaves many casino enthusiasts with few legal options online. The offshore route still exists but carries significant risk because U.S. players lack protections from rogue operators.
Filling this gap, sweepstakes casino operations have surged in popularity—especially among Americans wanting to play casino-style games for free or for prizes. Below, we compare the sweepstakes model with traditional no-deposit bonus offers at licensed online casinos.
What Are Sweepstakes Casinos?
Sweepstakes casinos are online, casino-style gaming platforms often promoted through social hubs like Facebook. They offer a full range of games that can be played either for free (“gold coins”) or for redeemable prizes (“sweeps coins”).
Because online casino gambling is not legal in 43 states, sweepstakes casinos position themselves as sweepstakes sites that do not require wagering real cash, operating under state sweepstakes laws where applicable.
Popular U.S. brands include Legendz, Stake.us, Pulse, and BetRivers.net. Roughly 150+ sites operate in the U.S., so players should do due diligence to find reputable platforms with solid game libraries and social features. Registration is generally open to anyone meeting the state’s minimum gambling age, typically 21.
Two-Track Currency Model
Most sweepstakes casinos use one or both of the following systems (terminology may vary by operator):
The Gold Coin Option
Upon signup, players receive an allotment of “gold coins” that can be used to play the casino’s games. In many cases, these games are the same titles offered by traditional online casinos like BetMGM, Caesars, DraftKings, and FanDuel, including content from leading providers such as Microgaming, Playtech, NetEnt, Betsoft, Play’n GO, RealTime Gaming, and Evolution (for live dealer games).
- Gold coin wins award more gold coins, extending playtime.
- Operators typically provide ongoing daily or weekly allotments to keep players active.
- Important: Gold coins have no redemption value and exist solely for free play.
The Sweeps Coin Option
“Sweeps coins” differ from gold coins in key ways:
- Free allotments are typically small.
- Additional coins may be obtained through purchases, bundles, promotions, or bonuses (operator policies vary).
- Accumulated sweeps coins can be redeemed for prizes, sometimes including cash.
Depending on the platform, sweeps coins may be used to enter drawings, participate in tournaments, or play designated games. Potential prize types include:
- Travel vouchers for free vacations
- Gift cards for major retailers
- Merchandise (e.g., computers, smartphones, even cars)
- Cash (at some casinos)
The Thin Gray Line Between Sweepstakes and Gambling
Regulators and licensed online casinos have increased scrutiny of sweepstakes models, particularly where players can obtain sweeps coins in ways that resemble purchasing chances to win larger prizes. Some regulators argue that such mechanisms constitute gambling and have begun restricting or banning certain platforms. In states with iGaming, some sweepstakes operations are exploring licensing pathways, but the legal landscape remains in flux.
How Big Is the Sweepstakes Market?
Statistical evidence suggests that revenues for many operators have been growing as much as 20% year over year, driven in part by on-site advertising. Overall annual revenue is already in the billions, with changes likely as regulation evolves.
A Discussion of No-Deposit Bonus Promos
Traditional online casinos compete with sweepstakes sites by offering welcome bonuses. A popular component is the no-deposit bonus—value given to new players before any initial deposit. Typical forms include:
- Free spins on a designated slot
- Free casino credits/coins
- A combination of free spins and credits
However, casinos are not in the business of giving away free money, so no-deposit offers come with conditions that make cashing out challenging. Common requirements include:
- Time limits on usage
- Game restrictions
- Maximum bet limits
- Maximum cash conversion (cashout) caps
- Playthrough (wagering) requirements
Understanding Playthrough
The playthrough requirement is the number of times bonus winnings must be wagered before they become withdrawable cash.
Example: If you win $100 from free spins with a 15× playthrough, you must wager $1,500 ($100 × 15). Any remaining balance after meeting requirements may still be subject to a maximum cashout cap.
Current State of Sweepstakes Casinos by State
Some states (e.g., Delaware, New Jersey, Michigan) that already allow iGaming have begun taking formal positions on sweepstakes platforms. Outcomes vary: bans in some places, licensing pathways in others. Expect continued shifts as regulators respond to market growth and consumer protection concerns.
Tax Reporting Requirements
In the U.S., gambling winnings are taxable. Regulators prefer licensed operators in part because the IRS expects reportable winnings, and licensing clarifies responsibilities. To avoid penalties, interest, or potential fraud allegations, understand your tax obligations before you play.
Sweepstakes Casinos vs. No-Deposit Bonuses — Making a Choice
Pros of Sweepstakes Casinos
- Potential for significant prizes
- Access to a broad casino experience
- Social features and community engagement
- Opportunity to practice iGaming skills with little or no financial risk
Cons of Sweepstakes Casinos
- Regulatory uncertainty; possible state-level bans
- May need to purchase bundles to obtain more sweeps coins
- Possible exposure to rogue operators due to limited oversight
Pros of No-Deposit Bonuses
- No upfront cash risk to test a site
- Try games and site features before depositing
- Access to licensed U.S. operators with consumer protections
Cons of No-Deposit Bonuses
- Limited availability
- Restricted game access
- Betting limits
- Conversion and withdrawal restrictions
Always Gamble Responsibly
Whether you are gambling for free or risking your hard-earned cash, you must always behave in a financially responsible manner. You don’t want to risk financial problems of falling prey to gambling addiction.
As a rule of thumb, your gambling bankroll should never exceed the discretionary money that remains after you pay bills and set some savings aside. Even if you are gambling for free, be wary of too much play. You might cross the line and start risking your money when that was never your intention.
Frequently Asked Questions
Are sweepstakes winnings “real money” or gift cards?
It depends on the platform. Many offer chances to redeem prizes such as cash, gift cards, or merchandise. Always review the site’s terms before playing.
Why do no-deposit bonuses cap maximum cashout?
Casinos design no-deposit offers to provide value without large liabilities. Caps, playthrough, and other rules limit risk and prevent oversized payouts from risk-free bonuses.
Can I redeem sweeps coins without completing KYC?
No. In almost all cases, you must complete the site’s identity verification (KYC) before redeeming prizes.
Do crash games exist on sweepstakes platforms?
Sometimes. Availability depends on the software providers a platform uses and whether it offers those game types.
What happens if I fail ID verification after winning a no-deposit bonus?
If you cannot complete KYC, withdrawals are typically blocked. Operators may offer another attempt, but failure to verify usually leads to forfeiting winnings (and may affect withdrawals of later deposits). Completing KYC early is best.