Players at online sweepstakes casinos in Florida and New York face a unique limitation when it comes to their winnings.
And it’s something those players should be aware of before playing any games with Sweeps Coins to avoid a situation that could range from mildly annoying to yank-my-hair-out frustrating.
The maximum sweepstakes prize redemption is $5,000 in Florida and New York.
As most sweeps operators redeem Sweeps Coins at a 1 SC to $1 ratio, that’s 5,000 SC (or whatever the operator calls its redeemable currency).
Reason No. 23,987 to read the terms and conditions
Not all players know this information, however.
Take this Reddit user, for example, who recently posted a screenshot of an email with a WOW Vegas customer service representative. The email is explaining why only a portion of the user’s spin prize on the slot Crash Live from Feb. 17 could be redeemed.
“I am writing you today as we had to place some limitations on your winnings,” the representative wrote. “ … Please note that this is not a business decision and we are just respecting the conditions imposed for your state.”
The user’s prize from the spin: 15,470 SC.
The amount the user cannot redeem: 10,470 SC.
Origins of $5,000 prize limit in NY and FL
Florida’s $5,000 prize redemption limitation stems from Section 849.094 of the Florida Statutes.
That law doesn’t explicitly state Florida residents can’t redeem sweepstakes prizes of more than $5,000.
What it states is that companies offering a sweepstakes prize of greater than $5,000 in Florida must register with the Florida Department of Agriculture and Consumer Services and file a surety bond equal to the prize value “unless they have conducted game promotions in Florida for at least five consecutive years and they have had no civil, criminal or administrative actions instituted against them for a violation of” the statute.
“This process can be both time-consuming and costly, leading many companies to exclude Florida to avoid the extra burden,” reads a portion of a page of the Social Media Law Firm’s website dedicated to sweepstakes contests in Florida.
The same type of rule is in place in New York — sweepstakes operators must register and bond the contest with the New York Department of State if the prize totals more than $5,000 — but the state isn’t seen to be as stringent as Florida.
At least according to the Kilpatrick Townsend law firm.
“Enforcement in New York is much less of a factor,” the firm wrote in a law guide focused on sweepstakes and skill contests.
There is also a sweepstakes redemption limit of $500 in Rhode Island, but that is only for retail contests.
The Reddit user did not share which state they live in.
Examples of how sites address the prize limit
Most sweeps sites explain the prize redemption situation in New York and Florida within their terms and conditions or sweeps rules.
Here it is in the WOW Vegas terms:
“For eligible participants who are resident in New York or Florida, the highest single prize amount that can be redeemed is capped at USD$5,000 per spin or play round. Redemption amounts exceeding USD$5,000 will not be awarded to residents of these states.”
Here’s what the terms and conditions say for sweepstakes behemoth VGW, which owns Chumba Casino, LuckyLand Slots, and Global Poker:
“In New York and Florida, the maximum redemption value for a Prize won on any one spin or play is USD $5,000 and any Prize with a value in excess of USD $5,000 will be reduced to a maximum value of USD $5,000.”
Real Prize even caps the redemptions at $4,999.99 in its terms and conditions:
“Any potential prizes (in Florida and New York) in excess of that ($5,000) will automatically be reduced to US$4,999.99.”
These sites allow players to carry leftover funds to next redemption period
Clubs Casino adds an important distinction in its sweepstakes rules. It, too, states that any prize above $5,000 cannot be redeemed in New York in Florida. But it also specifies that “any requested redemption in excess of ($5,000) will not be paid to the participant during the period, but must be deferred until the next Sweepstakes Entry Period.”
In other words: You can’t redeem a prize of 7,500 SC for $7,500 at once, but you can split it into $5,000 and $2,500 across two redemption periods.
Fliff, meanwhile, applies the $5,000 prize limit to all users and directly states in its rules that a player can carry over any excess greater than $5,000 to the next sweepstakes period.
It is not always clear from sites’ terms and conditions if they will honor the same carry-over policy that Clubs Casino and Fliff stipulate in their rules. In comments following their Reddit post about the WOW Vegas email, the Reddit user said they were not able to redeem the excess SC beyond 5,000 from their spin.
Sweepsy asked WOW Vegas customer service if players can carry over prize amounts greater than $5,000 to the next redemption period. The response reviewed the different steps and payment options for redemptions but didn’t address our specific question.
We asked the same question to a variety of other sweeps operators’ customer support teams. Of the operators that responded, four said yes, a player can carry over amounts greater than $5,000 to the next redemption period. Those operators are:
- Chanced
- Stake.us
- Legendz
- High 5 Casino
The status of sweeps casinos in both states
Earlier this week, Sen. Joseph Addabbo introduced a bill in New York that would ban sweepstakes gaming sites.
Specifically, the bill outlaws “operating, conducting, or promoting certain online sweepstakes games or supporting the operation, conduct, or promotion of such games.” It was filed March 4 and sits in Addabbo’s committee, the Senate Racing, Gaming, and Wagering Committee.
The Social and Promotional Games Association called the bill “deeply flawed” and “a colossal waste of government resources.”
“The correct approach to support innovation, consumer choice, and the economy of New York is sensible regulation and taxation of social sweepstakes games that millions of adults enjoy responsibly and safely,” the SPGA said in a statement.
Some sweepstakes sites currently do not operate in New York. Stake.us, for instance, has New York listed on its list of restricted states. However, most notable sweeps sites are live in New York.
Meanwhile, in Florida, two lawmakers have filed bills that would effectively outlaw sweepstakes casinos, first reported by US gambling attorney Daniel Wallach on LinkedIn.
The bills expand Florida’s gambling ban to include “Internet gambling” and “Internet sports wagering” and both those categories are specified to include people betting with money or any “other thing of value” online.
For sweeps sites, the problem is that Sweeps Coins could be classified in the “other thing of value” category.
The House version of the bill had its first reading on Tuesday, but no updates since then. The Senate bill has only been filed so far.
The SPGA said these bills “inaccurately conflate safe and legal social sweepstakes games” with online gambling.
“(We urge) Florida lawmakers to engage with industry representatives to better understand the legal and operational differences between sweepstakes gaming and gambling,” the SPGA said in a statement, “before advancing legislation that would harm businesses operating legitimately under longstanding promotional sweepstakes laws.”