Sweepstakes Casinos Available in Delaware in 2025

Stakester’s Take

Unfortunately, due to strict enforcement actions in 2025, no monetized sweepstakes casinos operate legally in Delaware, limiting options for players seeking cash prizes. This stems from regulators classifying such platforms as unlicensed gambling.

For those interested in social gaming without redemptions, pure fun-play sites remain accessible, though they lack monetization. If you're looking elsewhere, neighboring states like Pennsylvania offer more permissive environments with strong game selections and purchase options from licensed operators.

Delaware’s Sweepstakes Casino Laws: Legal Status Explained

Delaware law prohibits sweepstakes casinos that involve purchasing virtual coins for gameplay with cash redemptions, as they are deemed to include elements of chance, prize, and consideration under the state's Penal Code and Gaming Competitiveness Act of 2012.

This means platforms like Chumba or Luckyland cannot serve Delaware residents, with geoblocking enforced to prevent access. The implication is clear: sweepstakes models mimicking gambling are illegal, pushing players toward state-regulated options only.

Broader online casino restrictions in Delaware emphasize a controlled market. Real-money online casinos are legal but exclusively operated through three state-licensed racinos (Delaware Park, Dover Downs, and Harrington Raceway), offering slots, table games, and poker since 2013.

Sportsbooks are also permitted under the same monopoly, integrated with the state's lottery system. Games of chance outside this framework, including unregulated apps or offshore sites, face heavy scrutiny and potential fines, reflecting Delaware's proactive stance against unauthorized gambling to protect consumers.

Why Delaware's Approach Stands Out

Unlike more lenient states, Delaware prioritizes monopoly control to ensure revenue benefits public services like education, creating a safer but less diverse gaming landscape.

Potential for Future Shifts

While no immediate changes are on the horizon, national trends could influence Delaware to revisit sweepstakes if federal clarifications emerge.

Delaware’s Gambling Regulator

The Delaware Division of Gaming Enforcement (DGE), established in 2012 under the Department of Safety and Homeland Security, oversees all gambling activities in the state, including enforcement against unlicensed operators. Founded alongside the expansion of online gaming, the DGE takes a stringent stance, as seen in its 2025 crackdowns on sweepstakes platforms, prioritizing consumer protection and regulatory compliance over market expansion.

Responsible Gambling

Delaware mandates robust responsible gambling tools through its licensed operators, including self-exclusion programs via the Delaware Council on Gambling Problems (DCGP), which offers a voluntary exclusion list for up to five years or lifetime bans.

Addiction services are accessible through the state's 24/7 helpline (1-888-850-8888) and free counseling programs. By law, all regulated sites must provide deposit limits, time-outs, and reality checks, with the DGE enforcing these to combat problem gambling effectively.

Delaware’s Sweepstakes Casino Tax Requirements

Since sweepstakes casinos with redemptions are unavailable in Delaware, tax obligations primarily apply to winnings from state-licensed gambling. However, if any future sweepstakes prizes were to qualify as taxable income, they would follow general state rules. Here's a breakdown:

• Federal Taxes: All gambling winnings over $600 are reported to the IRS via Form W-2G, taxed as ordinary income at rates up to 37% based on your bracket.
• State Taxes: Delaware taxes gambling winnings at 2.5% to 6.6% progressively, with no withholding for residents unless winnings exceed $5,000. Non-residents face a flat 6.75% withholding on winnings over $5,000.
• Reporting Requirements: Use Form DE-540 for state returns; deduct losses only up to the winnings amount, with itemized records required.

Latest Delaware Regulatory Changes Affecting Sweepstakes Gaming

Delaware's regulatory landscape for sweepstakes gaming saw significant enforcement in 2025, reinforcing its ban on platforms with cash elements while maintaining stability for licensed operations.

• April 2025 Cease-and-Desist Orders: The DGE targeted VGW Luckyland and similar operators, shutting down access for Delaware players and classifying sweepstakes as illegal slots.
• August 2025 Voluntary Exits: Platforms like RealPrize pulled out amid national crackdowns, with no new openings reported. Other notable platforms like Chumba, Zula, LuckyLand Slots, and Global Poker (operated by VGW) had already exited earlier in April 2025. Broader lists from June 2025 reports show additional exits like Funrize, McLuck, and Stake.us.
• No New Legislation: Existing laws sufficed for enforcement, though neighboring New Jersey's ban sparked discussions without action in Delaware.
• Top News: A major story involved the DGE's successful shutdown of illegal online slots, protecting consumers from unregulated risks.