Are Crypto Casinos Legal in the US?

In the United States, online casinos operate under a patchwork of state laws rather than a unified federal framework. The 2006 Unlawful Internet Gambling Enforcement Act (UIGEA) doesn’t ban online gambling outright but prohibits financial institutions from processing payments for illegal internet gambling.

This also means that each of the states can decide to legalize and regulate online casinos within their borders.​ While seven states allow regulated online casinos, crypto casinos operate differently and most exist offshore beyond US jurisdiction. This creates a messy situation where federal law stays silent, state regulations conflict, and enforcement remains inconsistent.

This guide explores where crypto casinos stand legally in each state, recent developments affecting the industry, and what players should do to protect themselves. Whether you’re considering playing at a crypto casino or just curious about the rules, this article delivers the facts without the fluff.

Legality of Crypto Casinos in the US – Current Status in All 50 States

Before we jump into other details, let’s take a quick look at the current legal status of online casinos (and crypto casinos, by extensions) in all 50 states. 

Please note that we’re only talking about online gambling here – and not physical casinos. Some states allow physical casinos but ban online gambling. 

Are sweepstakes and social casinos legal in the US?

Now, technically, sweepstakes casinos operate under promotional contest laws rather than gambling regulations, which allows them to function in most states. 

Most of these platforms use a dual-currency model where players receive “Gold Coins” for entertainment and “Sweeps Coins” that can be redeemed for prizes. The key distinction is that players can obtain Sweeps Coins through free alternative methods without purchase, which traditionally kept them outside gambling definitions.​

However, there has been a major shift this year. State regulators in Connecticut, Delaware, Maryland, and Michigan issued cease-and-desist orders against sweepstakes operators. Montana banned all dual-currency online gaming platforms in May, followed by Connecticut in June. As of November 2025, sweepstakes casinos remain legal in approximately 40 states but face an uncertain future as more jurisdictions consider bans.​

The regulatory crackdown stems from concerns that these platforms function as unregulated gambling despite their legal structure. Plus, critics argue they lack consumer protections, responsible gaming tools, and proper age verification compared to licensed casinos. 

Further, several states view them as competition to potential regulated markets and tax revenue streams. The Social and Promotional Games Association argues states should regulate rather than ban these platforms, but momentum continues toward prohibition in states considering online casino legalization.​

Recent Noteworthy Events 

To better understand the current legal situation surrounding crypto casinos, sweepstake casinos, and online gambling in general, let’s look at some of the recent events. 

1. Some states have been scrutinizing sweepstakes casinos

This year, some of the states have been aggressively targeting sweepstakes casinos. In fact, Montana became the first state to ban them in May, with violations now carrying felony charges up to 10 years in prison and $50,000 fines. 

Connecticut followed in June, and several other states including New Jersey, Louisiana, and Massachusetts introduced similar legislation. These platforms used dual-currency systems to operate in legal gray areas, but regulators decided they too closely resembled unregulated gambling.​

2. Sports prediction markets are up-and-coming 

Kalshi and Polymarket emerged as major players this year, offering event contracts on sports outcomes across all 50 states. These platforms claim they’re financial exchanges regulated by the federal Commodity Futures Trading Commission (CFTC), not gambling sites subject to state laws. 

However, more than 30 state attorneys general sent cease-and-desist letters arguing these contracts are effectively sports bets. Multiple lawsuits are ongoing, with outcomes likely headed to the Supreme Court.​

3. Two states have approved cryptocurrencies for sports betting 

In November 2025, Colorado and Virginia became the first states to explicitly approve cryptocurrency-converted deposits for online sports betting platforms. Plus, Wyoming already recognized crypto as an approved payment method. While this doesn’t extend to casino gambling, it signals growing regulatory acceptance of cryptocurrency in the gaming industry.​

4. Google integrates prediction market data

In November 2025, Google announced that it would display real-time odds from Polymarket and Kalshi directly in Google Search and Google Finance. This mainstream integration brought blockchain-based prediction data into public view, though both platforms operate in legal gray areas regarding US regulations.​

What’s the Legal Status of Crypto Casinos in other Countries? 

In this section, we have provided a quick overview of the legal status of online gambling in some countries.

At the time of writing, this is what the current status is in each of the countries. While we try our best to keep the info up-to-date, we’d strongly encourage you to double check and make an informed decision. 

What Should Players Do?

If you’re considering crypto casinos, take these steps to stay safe and compliant:

• Consider legal alternatives: If you’re in a state where online casinos and/or online betting platforms are legal, you can check out the legal options. You will have better consumer protection this way. But if you’re in a state without legal online casinos, daily fantasy sports platforms and social casinos (where still legal) offer alternatives. 

• Understand your local laws: The first step is to know the current legal status of online casinos and cryptocurrency usage in your region. As we discussed, currently only seven states permit regulated online gambling, and even those don’t accept cryptocurrency.

• Understand the risks associated with offshore platforms: Most crypto casinos operate under licenses from jurisdictions like Curaçao, Costa Rica, or Anjouan that provide minimal consumer protection. If a site refuses payouts or disappears, you have no legal recourse or regulatory body to contact. Unlike licensed casinos that must meet fairness standards, many offshore operators make consumer protection optional.​

• Avoid using VPNs: Now, a lot of online casino sites block users from the US, which can be sometimes bypassed with VPNs. While VPNs aren’t illegal themselves, using them to access gambling sites in states where online gambling is prohibited may violate those sites’ terms of service and state law. Many platforms use Know Your Customer verification that will eventually reveal your location, potentially leading to account closure and forfeited winnings.​

• Check licensing and security measurements: If you choose to use a crypto casino, verify it holds a legitimate license and check independent reviews. Look for platforms with SSL encryption, provably fair gaming technology, and clear responsible gambling tools.​

• Understand KYC requirements: Many “no-KYC” crypto casinos only skip verification until you try to withdraw significant amounts. Having your documents ready prevents frustration, but be cautious about sharing personal information with unlicensed platforms that may not protect your data adequately.​

• Play responsibly: Use deposit limits, loss limits, and self-exclusion features when available. Remember that cryptocurrency’s anonymity and speed can make it easier to lose track of spending.

Final Thoughts 

As we saw, the legal status of crypto casinos in the United States remains complicated and varies by location. Only seven states have legalized online casinos, and none of those permit cryptocurrency transactions. Most crypto casinos operate offshore beyond US jurisdiction, creating a technically illegal but largely unenforced situation for players in the other 43 states.​

However, as we discussed, there is a slow but steady expansion of legal online gambling alongside stricter enforcement against unregulated alternatives. Whether your state joins the seven with legal online casinos depends on local politics, revenue needs, and public opinion. For now, the best you can do is understand the legal landscape and making informed choices based on your risk tolerance.

This article provides general information about crypto casino legality and is not legal advice. Gambling laws change frequently and vary by jurisdiction. Players are responsible for understanding and complying with laws in their location. 

Please play responsibly. If you or someone you know has a gambling problem, contact the National Council on Problem Gambling at 1-800-522-4700.