Sweepstakes Casinos in Washington

Stakester’s Take

Sweepstakes casinos are strictly prohibited in Washington. The state has one of the most comprehensive bans in the country, with all online sweepstakes casino platforms, including those using dual-currency systems like Gold Coins and Sweeps Coins, barred from operating. Major operators such as Virtual Gaming Worlds (VGW) have ceased all sweepstakes operations in Washington, closing off this avenue for online casino-style gaming.

Washington’s Sweepstakes Casino Laws Explained

Washington defines illegal gambling broadly and enforces a ban on any online sweepstakes casino that simulates gambling or uses virtual currencies redeemable for cash or prizes. The state’s gambling laws prohibit any promotion that combines the elements of prize, chance, and consideration, unless specifically exempted. Only narrowly defined activities, such as certain charitable raffles, bowling or golfing sweepstakes, and limited promotional contests of chance, are allowed under strict conditions.

Key Updates:

• Comprehensive Ban: All online sweepstakes casinos, including those using dual-currency models, are illegal in Washington.
• Enforcement Actions: Leading sweepstakes operators have withdrawn from the state to avoid regulatory penalties.
• Who Is Affected: The ban covers operators, affiliates, payment processors, and anyone facilitating these platforms.
• Penalties: Violations can result in criminal prosecution, fines, and potential imprisonment.
• Regulatory Oversight: The Washington State Gambling Commission enforces these laws and has broad authority to investigate and penalize violators.

Sweepstakes casinos are not a legal option for Washington residents. The state’s regulatory framework is designed to close any loopholes that might allow such platforms to operate.

Washington’s Gambling Regulator

The Washington State Gambling Commission is the primary regulatory body overseeing all gambling activities in the state. Established to enforce state gambling laws, the Commission licenses and regulates authorized gambling, investigates violations, and provides guidance on compliance. Local governments have limited authority, as most gambling regulation is controlled at the state level.

Responsible Gambling in Washington

While sweepstakes casinos are banned, Washington promotes responsible gambling through strict regulatory oversight and consumer protection laws. The state mandates clear disclosure of odds, prize values, and terms for any legal promotion. Problem gambling resources are available through state agencies, and all legal gambling operators must adhere to responsible gambling standards.

Tax Requirements at Washington Sweepstakes Casinos

Sweepstakes winnings are considered taxable income under federal law. Any prize over $600 must be reported, and sponsors are required to issue a 1099 form to winners. Washington does not have a state income tax, so only federal taxes apply to sweepstakes winnings. However, since sweepstakes casinos are illegal, legitimate winnings from such platforms are not recognized under state law.

Latest Washington Sweepstakes Casino Regulatory Changes

• Ongoing Ban: Washington has maintained its prohibition on online sweepstakes casinos through 2025, with no new carve-outs or exceptions.
• Scope: The law prohibits any online sweepstakes game that simulates casino-style gambling or uses virtual currencies redeemable for cash or prizes.
• Enforcement: The Gambling Commission actively investigates and penalizes violations, and all major sweepstakes casino platforms have exited the state.
• Status: Washington remains one of the strictest states regarding sweepstakes casinos, with no indication of regulatory relaxation.

In summary, Washington’s approach to sweepstakes casinos is among the most prohibitive in the U.S., with robust enforcement and no legal avenues for online sweepstakes casino-style gaming as of July 2025.