Sweepstakes Casinos in Texas

Stakester's Take

Texas is fortunate enough to benefit from sweepstakes casinos that are federally regulated. This means that the offerings are far broader and enjoyable. Sweepstakes players in Texas should expect  provably fair mechanics, rapid redemption processes, and diverse game libraries. Here are Stakester's top picks:

Sweepstake Casino Regulations in The Lone Star State

Sweepstakes players will be glad to see that Texas allows its residents to play under federal sweepstakes laws. The state statute only requires that there be no purchase necessary for entry.

There is currently no regulation in the Lone Star State for any form of online gambling. Aside from sweepstakes casinos, however, Texans are not even legally permitted to play at any real-money casinos, Poker rooms, or even sportsbooks.

Texas' Gambling Regulator

Texas currently lacks any regulation or authority to monitor sweepstakes casinos. The state only provides the Texas Lottery Commission, which was established in 1993 and oversees charitable bingo and raffles.

Sweepstakes legislation is only enforced on a federal level.

Responsible Gambling

Players in Texas should be wary that there are no responsible gambling protocols enforced in Texas, particularly concerning sweepstakes casinos. 

Despite this, however, Texan players can expect top sweepstakes casinos to offer:

• Self-exclusion tools (e.g., 30–90-day cooling-off periods)
• Deposit limits on Gold Coin purchases
• Access to the National Problem Gambling Helpline (1-800-522-4700) and the nationwide Gamblers Anonymous.

State-funded addiction services remain limited, with advocacy groups like the Texas Council on Problem Gambling pushing for expanded support.

Tax Considerations for Sweepstake Players in Texas

Sweepstakes winnings are taxable in Texas under federal law. IRS guidelines include:

In Texas, winnings must be reported under "Other Income" regardless of how large the prize in question is. Avid players will also be pleased to see that losses are also deductible up to winnings if itemized.

Regulator Changes and Updates for Sweepstakes Casinos in Texas

Here are some of the major regulatory changes that are expected to shake up Texan iGaming in 2025:

• Bill HJR 234 -  a legislative amendment aimed at legalizing sports betting in Texas. This is due for public vote by November 2025.
• SJR 16 - A bill that seeks to license seven destination casinos and establish a fully dedicated Texas Gaming Commission.
• Further lobbying efforts from the Dallas City Council and the North Texas Commission, which have been advocating for gaming expansion to boost tourism and tax revenue.