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Are Sweepstakes Casinos Legal in Michigan?

Short answer: Michigan hasn't passed a law specifically naming sweepstakes casinos - but its gaming regulator has made clear it considers the dual-currency model unlicensed gambling under the state's existing law, and has been actively sending cease-and-desist letters to operators.

No sweepstakes-specific law - just existing licensing law

Unlike California, Indiana, Montana, Maine, or New Jersey, Michigan has not enacted (or currently has pending) a law that specifically defines or bans sweepstakes casinos. Instead, the Michigan Gaming Control Board (MGCB) relies on the Michigan Gaming Control and Revenue Act - specifically MCL 432.218 - which makes it unlawful to offer gambling to Michigan residents without an MGCB license. The MGCB's position is that the dual-currency Gold Coin / Sweeps Coin structure (see our guide to how the model works) is simply unlicensed online gambling by another name, regardless of the free-entry sweepstakes framing.

A violation of MCL 432.218 is a felony, carrying up to 10 years in prison and/or a $100,000 fine, with a related misdemeanor tier of up to one year and $10,000 for lesser violations.

Enforcement: repeated rounds of cease-and-desist letters

Rather than legislating, the MGCB has pursued this through direct enforcement action. It sent cease-and-desist letters to Stake.US (named specifically as an "unlicensed online lottery") in January 2024, to another sweepstakes-style platform in August 2024, and has issued further rounds of letters to unlicensed operators through 2025 - in one case naming the $100,000 fine provision directly. Each letter has given operators roughly two weeks to stop serving Michigan before the matter is referred to the state Attorney General.

What this means for you

Because the MGCB is actively enforcing against this model under existing law, most sweepstakes casino operators choose to block Michigan residents rather than risk a cease-and-desist order - even though, strictly speaking, no Michigan statute uses the word "sweepstakes." Treat Michigan as high-risk territory for this model, and expect that list of excluded states to keep growing as more regulators follow Michigan, Washington, and others in treating it as unlicensed gambling rather than waiting on new legislation.

Compiled from public reporting and MGCB enforcement notices as of October 2026. Laws and enforcement posture can change - this is general information, not legal advice. If you have questions about your own situation, consult a licensed attorney.

See the full state-by-state overview for how other states compare, or browse current welcome offers on the SweepScout homepage.

If it's legal where you live, start with two of our top-rated picks, Stake.US and Pulsz, or see how they compare head-to-head in Stake.US vs Pulsz, and before you redeem anything, read our guide on verifying your KYC first.