Fun prize casinos — also called sweepstakes casinos — work by splitting their virtual currency into two distinct types: one that exists purely for entertainment and one that you can actually redeem for real prizes. Once you understand that split, the whole model makes sense.
What Is the Dual-Currency Model?
Every legitimate sweepstakes casino runs on two coins. At Funrize, for example, those are Tournament Coins (TC) and Promotional Entries (PE). Other platforms use names like Gold Coins and Sweeps Coins, but the mechanics are the same. Tournament Coins have no monetary value and cannot be redeemed — they're for play-for-fun only, with no wagering requirement attached. Promotional Entries are the premium currency: earn them for free, play them through once (a 1× playthrough), and then redeem them for cash prizes or gift cards.
The table below compares the two currency types side by side so the difference is clear before you sign up anywhere.
| Currency Type | Example Names | Can Be Purchased? | Monetary Value? | Redeemable for Prizes? | Wagering Requirement |
|---|---|---|---|---|---|
| Fun / Play Coins | Tournament Coins (Funrize), Gold Coins (MyPrize) | Yes (or free) | No | No | None |
| Sweeps / Prize Coins | Promotional Entries (Funrize), Sweeps Cash (MyPrize) | No — awarded free only | Yes | Yes | 1× playthrough |
| Bonus Sweeps Coins | Promo PE, bonus SC | No | Yes (after WR) | Yes — after completing playthrough | Varies; confirm per offer |
Why Does the AMOE Matter Legally?
The sweepstakes model is legal in most US states because it eliminates "consideration" — the paid-entry element that would make it gambling. The mechanism that does this is the Alternative Method of Entry (AMOE). MyPrize.US, for instance, accepts a handwritten 4×6 postcard that earns you 4 Sweeps Cash at no cost. That free-entry route means no purchase is necessary to win, which is the legal foundation the entire model rests on.
Without a valid AMOE, a platform crosses into illegal gambling territory. Operators like Riversweeps and BitBetWin tried to dress up crypto gambling as sweepstakes gaming and lost traction by 2023 precisely because they didn't follow this framework. If you want a checklist for spotting shady operators, the fun prize casino red flags guide walks through exactly what to look for.
How Do You Actually Get Sweeps Coins?
There are several free routes. Funrize hands new players 75,000 Tournament Coins on registration, and bundles Promotional Entries with any coin package you choose to buy — but you are never required to buy anything. Using a Funrize promo code at registration like CASINOBONUS adds 400,000 Tournament Coins plus 1,000 Promotional Entries. The AMOE postcard route works at MyPrize.US, meaning you can accumulate a redemption balance without spending a cent.
Is This the Same as Playing at a Real-Money Casino?
No — and the distinction matters more than most players realize. A real-money online casino is licensed by a state regulator (New Jersey, Pennsylvania, Michigan, West Virginia, Connecticut, Delaware, and Rhode Island are the seven legal states), accepts direct wagers, and falls under strict audit requirements. A sweepstakes casino operates as a promotion, not a licensed gambling site, and is available in far more states — though the map is shrinking fast. For a deeper breakdown of how these two models compare on everything from bonuses to payouts, the page on sweepstakes casino vs real money casino differences covers it thoroughly.
Where Is This Legal in 2026?
As of mid-2026, sweepstakes casinos cannot operate in at least 14 US states. Montana was the first state to pass an explicit statutory ban. New York's legislature passed SB 5935, signed into law in December 2025. California banned them, removing roughly 20% of the industry's US revenue. Oklahoma's ban takes effect November 1, 2026. Funrize specifically blocks players in CA, CT, DE, ID, IN, LA, MI, MT, NV, NJ, NY, RI, TN, WA, WV, and WY. Florida residents can play but face a hard $5,000 prize cap — anything above that is void by state law. Check the full legal state guide for fun prize casinos in 2026 before you fund an account anywhere.
What Happens When You Redeem?
Once you've played through your Promotional Entries the required 1× and hit the minimum balance — 25 PE for a gift card or 100 PE for a cash prize at Funrize — you enter the redemption portal and complete KYC verification. That means a government-issued ID, proof of address, and occasionally the last four digits of your SSN. Your account name must match your banking details exactly or the redemption will be blocked. Gift card codes at Funrize arrive instantly as digital codes; online banking transfers take longer, though exact processing times aren't published. At MyPrize.US, first redemptions can take up to 10 days due to manual KYC review; after that, USDC on Ethereum settles in under 60 seconds and bank transfers arrive in 1–3 business days. The full step-by-step process is in the prize redemption guide.
Do Fun Prize Casino Winnings Get Taxed?
Yes. Every dollar you redeem is taxable "Other Income" under federal law, reported on Schedule 1 of Form 1040 — not on a W-2G like traditional gambling winnings. If cumulative redemptions from one operator exceed $600 in a calendar year, you should receive a 1099-MISC, but even if you don't, you're legally required to self-report. The guide to sweepstakes casino taxes covers withholding thresholds, what happens if no 1099 arrives, and when it's worth consulting a tax professional.
Common Questions Before You Play
The dual-currency model trips up a lot of first-time players — usually around whether they can really win anything without buying coins, how the playthrough requirement works, and why their state might block access. The fun prize casino FAQ has direct answers to all of those, including what to do if your state bans sweepstakes casinos mid-account. For a ranked look at which platforms are currently worth your time, the best fun prize casinos list compares the top operators on payout speed, game variety, and bonus value. I also reviewed Funrize Casino and MyPrize.US individually if you want to go deeper on either one.
Must be 18+ (21+ at some operators). If gambling is causing problems, call 1-800-GAMBLER for free, confidential support.
For independent operator information, the casino.org Funrize review is one of the more thorough third-party assessments available.