Are Sweepstakes Casinos Legal? The legality of sweepstakes casinos varies by jurisdiction, as they operate under different regulations than traditional gambling establishments. These venues typically use a sweepstakes model, allowing players to purchase entries for a chance to win prizes, which can include cash or other rewards. Are Sweepstakes Casinos Legal? In many states, they are considered legal as long as they adhere to specific guidelines, but it's essential for players to check local laws to ensure compliance and avoid potential legal issues.