Sweepstakes Casinos Still Dominating US iGaming

Just over seven years since the legalisation of online sports betting, the US sports betting market generated $16.96 billion in 2025. Similarly, last year also saw the US commercial casino gaming industry pull record-breaking revenue of over $78 billion, while popular prediction market sites like Kalshi and Polymarket passed trading volume of $63.5 billion. Yet amongst all of this, it’s the US sweepstakes casino market that’s been the surprise performer of them all, having experienced explosive Gen Z-driven growth post-COVID-19.

In 2026, sweepstakes casinos are now a leading part of the iGaming space, with the likes of Chumba Casino and Stake.us boasting millions of combined players each. This comes despite the fact that these new casinos have recently been banned in a rising number of states, including California and New York. But even though these harsh bans have caused a dent in the popular sweepstakes vertical, these casinos aren’t disappearing any time soon and are more dominant than ever.

Now, sweepstakes casinos are officially America’s fastest-expanding iGaming vertical, with new estimates showing that the market is still set to grow. According to Eilers & Krejcik, US sweepstakes casino operators will generate around $6.5B in revenue throughout 2026 and over $20B from player purchases (and that figure would be even higher had recent state bans not been implemented).

So, with new-generation players hooked and popular casino streamers on Kick and Twitch using these types of casinos, what more can players expect over the coming months?

Sweepstakes Casinos Have Taken Advantage of Legal ‘Grey’ Area

The problem that countless US sportsbooks and traditional online casinos have always faced is strict laws and regulations. Even now, real-money online casinos, despite generating billions, are only accessible in eight states. With sweepstakes casinos, though, it’s an entirely different story.

If you play in a sweepstakes casino like Chumba, you’re not using real money. Instead, players wager virtual ‘Gold Coins’ and ‘Sweeps Coins’. The latter can be redeemed for prizes when you collect enough of them, including cash transfers and retailer gift cards. And because players technically aren’t betting actual money, it means these casinos have been able to dodge traditional gambling laws and operate freely throughout almost the entirety of the US.

This legal grey area has been extremely profitable for sweepstakes casinos. VGW, the operator behind Chumba Casino and LuckyLand Slots, recently surpassed $7 billion revenue before going private, while other popular sweepstakes operators have also been raking in the money. Essentially, what they’ve done is tap into a market that’s largely unregulated yet still holds huge appeal to the vast majority of US casino gaming fans (most of whom are happy to play with Sweeps Coins rather than real money, as it’s still possible to redeem cash transfers and other prizes in the process).

There Are Now 350+ Sweepstakes Casinos, with New Ones Launching Every Month

Perhaps one of the craziest aspects of the sweepstakes casino world is that there are over 350 available sites and apps to pick from with huge support from gaming software companies. These consist of all-time classic casinos, including the likes of Chumba Casino and the more modern Stake.us, along with newly released operators like SweepJungle and Big Pirate. Plenty of the fresh casinos are also launching new features, like Big Pirate’s island-building mini-game. This is helping to shake sweepstakes casinos up even more and is a guaranteed way to keep Gen Z players coming in, many of whom are hooked on the interactive, prize-winning models that these casinos are using.

Legal Controversy Is Ongoing

Sweepstakes casinos haven't been without controversy, though, as a growing number of states have now either outright banned them or placed heavy restrictions.

As it stands, sweeps casinos are still legal in over 33 states in the US, but New York, California, New Jersey, Maine, Indiana, and several others have all opted to issue bans.

It has a lot to do with the sweepstakes model used by these casinos, where players can exchange ‘Sweeps Coins’ they win on slots and other games for prizes like gift cards, merchandise, and even cash.

In the eyes of some state lawmakers, it’s still a type of gambling, despite the fact you’re wagering virtual coins instead of actual money, which is why the bans have happened.

But even with these bans in place, the sweepstakes market is still a billion-dollar one and player counts continue to shoot up, which is why it remains the fastest-growing iGaming vertical.

These casinos are also helped by the fact that many popular Kick and Twitch casino streamers use them for their streams, while the likes of rapper Drake and Adin Ross have helped market them to their huge audiences as well.

Are Sweepstakes Casinos Truly Legit?

When it comes to sweepstakes casinos, they are legitimate iGaming platforms and have built a positive reputation ever since they first exploded back during the first COVID-19 lockdowns.

Outside of enabling players to win prizes, they’ve built huge user bases from the fact they’re technically free-to-play, frequently do coin giveaways, and keep their game libraries stacked with all the latest slots, crash games, and table games, which is exactly what younger players are looking for.

VGW, Yellow Social Interactive, A1 Development LLC, remain extremely reliable operators, too, and have helped build the legitimacy of sweepstakes casinos to that of regular online casinos.

The only thing for players to be aware of now is that most sweepstakes casinos require you to be aged 21+ following recent legal developments, and that there’s restricted access in a small number of states, like California and Indiana.

In terms of player safety, it’s recommended that you play with Gold Coins if you’re interested in simply playing for free, or you can occasionally bet Sweeps Coins if you feel like chasing some prizes.