How Sweepstakes Navigate California’s Online Gambling Laws

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Isn’t gambling mostly illegal in California?

With most forms of gambling deemed illegal in California, it might come as a surprise to hear that it is possible to play online casino games in the state and stay on the right side of the law. While online sports betting and online casino gambling for real money are not allowed, sweepstakes and social casinos are not covered by the same rules. Gambling at land-based venues is only possible at tribal casinos; sweepstakes casinos can be accessed from the comfort of your own home. If you prefer, they can be played on the go, as the best online sweeps casinos have great apps, too.

As Californians rejected propositions to allow online sports betting as recently as November 2022, you might be wondering what the loophole is that allows residents to play online casino games. It isn’t really a loophole at all; sweepstakes casinos, like social casinos, are not about gambling with real money.

The new craze sweeping the nation

Plenty of sweepstakes casinos are operating in the USA; you could say that they are sweeping the nation!

 Americans love to play casino games, which is one of the reasons why Las Vegas and Atlantic City have such allure and are popular and successful resort destinations. Casino games are part of American cultural iconography, so it is not surprising that people have jumped at the chance to play online casino games legally. But you might be asking yourself, what are sweepstakes casinos, and what makes them legal?

Navigating the law

Sweeps casinos are legal because players are not playing with or for real money and are not betting on the outcome of a specific game. Sweeps casinos operate using virtual currency known as Gold Coins. The best casinos offer players up to 1.5 million Gold Coins to play on slots and casino games. They offer a vast array of games, and some of the most prominent casinos boast over 1,200 titles. There is also the option to purchase extra sweeps coins for as little as forty-nine cents.

How to spot a sweepstakes casino

Sweepstake casinos have three distinct features that make them similar to, but set them apart from regular online casinos:

• Sweepstakes casinos allow you to play all your favourite casino games and redeem real money prizes without you having to spend a dollar
• They use virtual currencies known as Sweeps Coins or Gold Coins to enable you to play the games
• They are legal in over 45 states across the USA.

What is the difference between real money, social, and sweepstakes casinos?

Real-money casinos are easy to identify. They can only be played at legally in a handful of states, namely Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. These casinos are tightly regulated and can only be played by state residents. So, if you visit, you can play, but you must be physically located in these states to avoid getting on the wrong side of the law. 

Social casinos are only for fun, and there is no chance of redeeming prizes for anything other than glory or top spot on the leaderboard. Social and sweeps casinos are very similar, but there is one significant difference. Sweepstakes casinos work on the same principle but allow players to eventually redeem the Gold Coins they have won for real prizes. The process is somewhat convoluted, but it is one of the appeals of these casinos over their purely social relatives. 

In sweeps casinos, Gold Coins won can be played with to win valuable Sweeps Coins. In turn Sweeps Coins can be traded in for prizes. Sweeps casinos are permitted in all US states apart from Idaho, Michigan, Nevada, and Washington. In those four states, social casinos are allowed.

The rules

While Sweepstakes casinos are primarily about fun because there are chances of winning real prizes, they, too, are covered by a set of rules. These include:

• Prizes being identifiable before entry
• Competitions having a clear end date
• Purchases do not enhance players’ chances of winning.

Who oversees licensing sweepstakes casinos?

Because real money is not needed to play, sweepstakes casinos do not need licenses from the likes of the New Jersey Division of Gaming Enforcement or the Pennsylvania Gaming Control Board. While they do not need a permit to operate, they are governed by US sweepstakes laws. This means that there has to be no-purchase entry methods and adherence to location and age restrictions in the states in which they operate.

It is not a free-for-all all 

While sweepstakes casinos are enjoyable, they are still subject to local state laws. Legitimate ones always require players to provide proof of address and identity before allowing them to register or purchase virtual currency. These sites can verify your location via your IP address to ensure you are not playing from somewhere that is off-limits. Players must be at least 18 years old to play at sweepstakes casinos, and this can be older in some states. They also have to have top-rate back-end security to protect customers from possible cyberattacks and scammers.

What games are available at sweepstakes casinos

As far as possible, sweepstakes casinos mirror real money casinos when it comes to the kinds of games available. Those already familiar with real money games will see familiar titles that have been adapted for sweepstakes play. 

The most popular games are online slots, and the best sweeps casinos have titles from big-name game developers like Pragmatic Play, NetEnt, Relax Gaming, and Hacksaw Play.  Some of the favorites are Joker’s Jewels Wild, Cursed Crypt, Egyptian Dreams, and Hands of Midas 2. While immediate cash prizes might not be on the cards (or reels), the lure of gold and jewels is never far away.

Table games are also popular, and sweepstakes casinos do offer these. However, there are considerably fewer options than for slots. Blackjack is the most popular, but players can also find video poker, roulette, and baccarat. 

Live dealer games are also becoming more common, though most only offer a small number of games, with roulette, blackjack, and baccarat being the most popular. Some sweepstakes offer bingo, and there are even specialized bingo sweepstakes sites. If all else fails for bingo lovers, many sweep sites have Slingo, a bingo/slot mash-up game.

Play at home and away

As the sweepstakes sector increases in popularity, the operators are working to improve the experience. Some of the biggest names now have dedicated mobile apps, and others have optimized browser versions for small screens, meaning players can play the games regardless of location. 

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