Sweepstakes Casinos in North Dakota

Stakester's Take

North Dakota's sweepstakes scene boasts premium casinos with standout game libraries and generous welcome offers. Players may enjoy quality slots from top developers, transparent redemption policies, and consistent promotional value.

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North Dakota Sweepstakes Casino Laws: What You Need to Know

North Dakota draws a sharp line between illegal real-money online gambling and legal sweepstakes casinos. Traditional online casinos are not allowed in this state. But sweepstakes casinos can operate legally, as long as they follow strict rules set out in North Dakota Century Code Chapter 53-11, which covers contest prize notices.

How Sweepstakes Casinos Stay Legal

Sweepstakes casinos are allowed because they do not require you to pay to play. Here’s what the state law requires:

1. No purchase is necessary to participate.
2. Prizes must be awarded by chance, not skill.
3. Operators must clearly disclose the odds of winning and the value of prizes.

Sweepstakes casinos use a dual-currency system. You can get free entries, often called Sweeps Coins, through daily logins, mail-in requests, or social media contests. This is called an Alternate Method of Entry (AMOE), and it’s required by both state and federal law.

Other Forms of State-Restricted Gambling

Here are some forms of state-restricted gambling in North Dakota:

• Real-money online casinos are banned.
• Online poker was considered in 2005, but did not pass.
• Sports betting is only legal in person at tribal casinos or on tribal land using mobile devices.
• Even licensed organizations are not allowed to offer any form of online gaming.

Current Legal Landscape

Sweepstakes casinos in North Dakota operate within a unique legal and regulatory environment. Understanding how these platforms fit into state law is essential for both players and operators.

North Dakota has not enacted recent legislation specifically addressing online sweepstakes casinos. As a result, these platforms continue to operate under the state’s general sweepstakes framework. The state’s enforcement efforts remain focused on traditional gambling, while sweepstakes casinos are generally permitted as long as they adhere to the “no purchase necessary” requirement. Any platform that requires payment for participation or fails to disclose odds and prize details risks violating state law.

North Dakota Sweepstakes Casinos Regulator

The North Dakota Office of Attorney General’s Gaming Division enforces gambling laws in the state, with primary oversight of charitable gaming and tribal-state gaming compacts. Sweepstakes casinos fall outside the division’s direct licensing authority, but the Attorney General’s Office can take enforcement action if a sweepstakes operator violates state law or engages in deceptive practices. 

For traditional gambling, different agencies provide oversight:

• The North Dakota Racing Commission regulates pari-mutuel wagering
• For Lottery games, the North Dakota Lottery administers this
• Tribal casinos operate under gaming compacts with their tribal gaming commissions

Potential Regulatory Changes

There are ongoing discussions among lawmakers about restructuring the state’s gambling oversight, including proposals to dissolve the Gaming Commission and transfer its authority to the Attorney General’s Office. However, these changes would not directly impact sweepstakes casinos, as they are not regulated as gambling operations.

Responsible Gambling Resources

North Dakota offers several free and confidential resources for individuals facing gambling-related issues:

• ND Problem Gambling Helpline: 1-877-702-7848 (available 24/7)
• Gamblers Anonymous: Chapters throughout the state
• Lutheran Social Services Gambler’s Choice Program: Counseling for individuals and families

You may also refer to some online resources and recovery courses at gamblernd.com. While state law does not require sweepstakes casinos to provide responsible gambling tools, most reputable platforms offer voluntary self-exclusion, deposit limits, and reality checks. The North Dakota Lottery also supports responsible gambling initiatives and provides links to support services.

Tax Obligations

Winnings from sweepstakes casinos, especially in North Dakota, are taxable income at both the federal and state levels. Here's a breakdown:

Federal Tax Requirements:

• All sweepstakes casino winnings are considered taxable income by the IRS and must be reported on your federal tax return, regardless of the amount.
• For winnings of $600 or more (if the amount is at least 300 times the wager), the payer may issue a Form W-2G, not 1099-MISC.
• For sweepstakes, lotteries, and wagering pools, a W-2G is generally issued for winnings over $5,000.
• Federal tax withholding of 24% applies to winnings over $5,000.
• Even if taxes are not withheld, players are still responsible for reporting and paying taxes on all gambling winnings

State Tax Requirements:

• Gambling winnings are generally subject to state income tax if the state has an income tax.
• North Dakota requires residents to report gambling winnings as part of their state taxable income.
• As of 2025, North Dakota has a flat individual income tax rate of 2.04%.
• There is no specific state withholding requirement for gambling winnings in North Dakota; players must report winnings when filing their state return.
• Players should keep detailed records of all winnings and redemptions for accurate tax reporting.

Player Responsibilities:

Players must maintain detailed records of all sweepstakes redemptions and associated prize values. It's essential to report all winnings when filing tax returns, regardless of whether official tax forms like W-2G are issued by the sweepstakes operator. Given the complexity of gambling-related tax obligations, consulting with a qualified tax professional for personalized guidance is highly recommended, especially for significant winnings or frequent redemptions.

Latest North Dakota Regulatory Changes Affecting Sweepstakes Gaming

• April 2025: Leading sweepstakes casinos updated their terms of service to comply with national regulatory trends; no North Dakota-specific changes were required.
• January 2025: Legislators introduced a bill to study the economic impact of legalizing real-money online casinos; no changes to sweepstakes regulations were proposed.
• November 2024: The Attorney General clarified that tribal casinos’ online sports betting is only allowed when players are physically present on tribal lands.
• July 2024: Lawsuits in neighboring states challenged the legality of sweepstakes casinos, prompting discussion of potential regulatory scrutiny in North Dakota, though no direct action was taken.
• March 2024: The Gaming Division updated its website to reaffirm that online gaming remains prohibited for licensed organizations, maintaining the legal distinction between real-money gambling and sweepstakes casinos.