Sweepstakes Casinos in Alabama (2026)

Are sweepstakes casinos legal in Alabama?

Sweepstakes casinos are legal to play in Alabama, but the state has become one of the most litigated markets in the country and several brands have stopped accepting Alabama players. No Alabama statute mentions sweepstakes casinos, the Legislature has never voted on a ban, and the Attorney General has not sent cease-and-desist letters. The pressure comes from private class actions brought under a loss-recovery statute that dates from 1852.

Section 65 of the Alabama Constitution bans lotteries and gift enterprises, and Section 13A-12-20 of the Code of Alabama defines gambling as staking something of value on a contest of chance or a future event outside the player’s control, on the understanding that something of value will be received if a certain outcome occurs. Simple gambling is a Class C misdemeanor under Section 13A-12-21, and promoting gambling is a more serious offence under Section 13A-12-22. Sweepstakes casinos argue they fall outside these definitions because Sweeps Coins can be obtained free through daily logins, social giveaways and mail-in requests, so nothing of value is staked. No Alabama appellate court has ruled on that argument for online sweepstakes casinos, which is exactly what the class actions are testing.

The loss-recovery lawsuits

Section 8-1-150 of the Code of Alabama lets anyone who loses money gambling sue to recover it within six months, and if the loser does not sue, allows another person to bring the claim. Plaintiffs’ lawyers have used it to file class actions against sweepstakes operators on behalf of all Alabama players:

• Pilati v. Yellow Social Interactive, against the operator of Pulsz, was filed in Franklin County Circuit Court in 2023. The operator moved it to federal court, but on January 7, 2025 Judge Liles Burke of the Northern District of Alabama sent it back to Franklin County, keeping the case in state court where the loss-recovery statute is most favourable to plaintiffs.
• Hall v. Sweepsteaks Limited, against Stake.us, was filed on May 2, 2025 and was followed within weeks by a batch of similar suits against other operators.
• A further wave of filings arrived in January 2026, bringing the total to several dozen cases. None has yet produced a final judgment on whether the dual-currency model is gambling under Alabama law.

The lawsuits have changed the market. Pulsz no longer accepts Alabama players, and brands including Sidepot, Spree, Thrillzz and Stackr have also excluded the state, while a few operators that paused have since reopened after reviewing their terms. Alabama remains available on most large sites.

Recent developments

• February 2024: the House passes HB 151 and HB 152, sponsored by Representatives Chris Blackshear and Andy Whitt, which would have created a lottery, up to seven casinos, sports betting, a gaming commission and a compact with the Poarch Band of Creek Indians.
• March to May 2024: the Senate strips the package to a lottery and a tribal compact. A conference committee compromise passes the House but fails in the Senate, one vote short of the three-fifths majority needed for a constitutional amendment.
• January to April 2025: Senate leaders say any gambling bill must start in the Senate, then declare lottery and gambling bills dead for the 2025 session.
• May 2, 2025: Hall v. Sweepsteaks Limited is filed against Stake.us.
• February 3, 2026: Senator Merika Coleman files SB 257, which would let voters decide on a lottery, casinos, online sports betting, a Poarch Band compact and a state regulator. Representative Phillip Ensler files a lottery-only bill. Senate President Pro Tempore Garlan Gudger and House Speaker Nathaniel Ledbetter say gambling bills are unlikely to move.
• March 2026: both bills stall in committee and the session ends without a vote.

How Alabama law treats sweepstakes and gambling

Alabama has no statewide gaming commission; the Attorney General and county district attorneys enforce the gambling statutes, and the Alabama Supreme Court has repeatedly held that electronic bingo machines outside tribal land are illegal slot machines. Simple gambling by a player is a Class C misdemeanor on paper, but the state has never charged anyone for playing an online sweepstakes casino; the litigation risk falls on operators, and Section 8-1-150 gives players a claim rather than a penalty. The Poarch Band’s Wind Creek casinos operate under the federal Indian Gaming Regulatory Act, outside state jurisdiction.

What Alabama players should check

• Age: sweepstakes casinos accept Alabama players aged 18 and over (Stake.us requires 21). Wind Creek casinos are 21+.
• Availability: Pulsz and several smaller brands exclude Alabama. Check the eligible-states list before buying Gold Coins.
• Litigation: if you lost money at a sweepstakes casino, Alabama law gives you six months to sue for its return. We are not lawyers; several firms are running these cases and can advise you.
• Location and identity: expect geolocation and KYC checks before your first redemption. VPN use forfeits balances.
• Taxes: prizes are taxable income for federal and Alabama purposes.

Other legal ways to play in Alabama

Alabama is one of five states without a lottery, alongside Alaska, Hawaii, Nevada and Utah, and it has no commercial casinos, no legal sports betting and no online casino. The Poarch Band of Creek Indians runs Wind Creek casinos in Atmore, Wetumpka and Montgomery, offering electronic bingo machines but no table games. County-level constitutional amendments allow charitable and electronic bingo in a handful of counties, though those halls have opened and closed amid court challenges. Pari-mutuel simulcast betting is available at the Birmingham Race Course. Many Alabamians drive to Mississippi casinos or buy lottery tickets in Georgia, Tennessee and Florida.

Staying up to date

We monitor the Alabama class actions, each session’s gambling bills and every operator’s Alabama terms. The legal status on this page and the list of casinos open to Alabama residents are updated as soon as anything changes, and the review date in the header shows when we last checked.