Crypto casino brand Rainbet has expanded into the US sweepstakes market with Rainbet.us, a social casino platform using a dual-currency model similar to Stake.us. However, its published list of restricted states omits Tennessee, which banned certain online sweepstakes games in May 2026. The discrepancy raises questions about the platform’s compliance with state gambling laws.
According to an October 14 report from Tribuna.com, Rainbet has introduced a US-facing platform that operates under a sweepstakes framework rather than the conventional real-money online casino model. According to its official terms, Cyprus-registered Sweepstone Ltd. operates Rainbet.us.
How Rainbet.us Works
Rainbet.us follows a dual-currency model that separates recreational casino gameplay from promotional sweepstakes participation. Players can use virtual coins for entertainment, while eligible promotional coins can be redeemed for prizes under the platform’s sweepstakes rules.
The platform describes itself as a free-to-play social casino and states that no purchase is necessary to participate. However, operating under a sweepstakes framework does not automatically exempt a platform from state gambling laws, as several US states have introduced restrictions targeting these games.
Rainbet.us currently lists 11 restricted states in its published terms, including California, New York and Michigan. The restrictions reflect the increasingly fragmented regulatory environment for sweepstakes casinos across the country.
Tennessee Omission Raises Compliance Questions
Tennessee is absent from Rainbet.us’s published restricted-state list, despite legislation signed by Governor Bill Lee on May 22, 2026, prohibiting certain online sweepstakes games that use virtual-currency, dual-currency or multi-currency systems.
The legislation, SB 2136/HB 1885, amended the state’s consumer protection laws to target online sweepstakes games that simulate gambling and offer prizes through qualifying virtual-currency systems.
The omission does not necessarily mean Tennessee residents can access Rainbet.us or participate in its promotional games. Other published information identifies Tennessee as a restricted location, although the platform’s official terms do not reflect the state’s exclusion.
If Rainbet.us permits Tennessee residents to participate in activities prohibited by state law, the operator could face regulatory scrutiny or enforcement action. No enforcement action specifically against Rainbet.us has been established in the reporting reviewed.
Rainbet Follows Stake.us Into the Sweepstakes Market
Rainbet’s US expansion follows a model already used by Stake.us, one of the better-known sweepstakes casino platforms serving American players.
Unlike conventional online casinos that offer real-money gambling under state-specific licenses, sweepstakes platforms typically distinguish between recreational virtual currencies and promotional entries that may qualify for prize redemption.
However, states treat these platforms very differently. Some jurisdictions permit qualifying sweepstakes promotions, while others have enacted restrictions or challenged operators over whether their games constitute illegal gambling.
Rainbet.us’s entry into the market highlights both the sweepstakes model’s appeal to established crypto gambling brands and the compliance challenges they face as US states tighten their rules.
