5 Key Differences Between Sweepstakes and Real Money Casinos
April 9 2025, Published 3:00 a.m. ET
Online casinos have exploded in popularity in recent years, giving players a wide range of choices when it comes to gameplay, rewards, and legal accessibility. Two common types are sweepstakes casinos and real-money casinos. While they can look quite similar on the surface - offering slots, table games, and other classic casino options - their underlying models and legal standings are very different.
For players trying to decide which platform suits them best, understanding the core differences is essential. Sweepstakes casinos in particular offer an innovative way to play casino-style games without spending real money or violating gambling laws in most U.S. states. Let’s break down the five main differences between sweepstakes casinos and real money casinos so you can make an informed decision.
1. Legal Structure and Accessibility
Sweepstakes Casinos
Curiosity about how to play casino games with sweepstakes models is among many iGaming players. That’s why gambling expert Vlad Grindu helps players understand the system, currencies involved, and how to redeem prizes legally.
These casinos are big on sweepstakes laws and thus allows them to legally operate casino-style games in most states across the United States where playing for real money is prohibited. They avoid classification as gambling by using virtual currencies instead of real money. As a result, players can legally participate without violating local gaming regulations. However, some states like Washington still restrict access.
Real Money Casinos
Real money casinos can only operate and hold licenses from regulatory authorities where online gambling is permitted and regulated. At the moment, only seven states have a regulated online casino industry. While things may change given the unpredictable political landscape in 2025, for now, there aren’t many states offering them locally.
Examples of such a jurisdiction include but are not limited to New Jersey, Pennsylvania, and Michigan in the USA, in addition to the UK and a good number of EU countries. There are strict legal frameworks within which these casinos must operate, which also makes them more region-specific.
2. Currency and Gameplay Model
Sweepstakes Casinos
The sweepstakes casinos work using two kinds of virtual currencies. That may sound a little conspiratorial but it’s actually just a very clever system. namely Gold Coins (GC) which are used for free play and worth no monetary value, and Sweeps Coins (SC) which are earned through promotions or bundled along with Gold Coin purchases that can later be redeemable for cash and prizes when certain criteria are met.
These virtual currencies give players a casino atmosphere in which they can win money, despite not betting any real money.
Real Money Casinos
These are traditional online casinos, in which players deposit money in real currencies (USD, EUR, etc.) and wager on such currency in games, thereby receiving a cash payout if they win. The process is simple and straightforward, involving no proxy currencies or conversions of any type.
3. Sign-Up Process and Identity Verification
Sweepstakes Casinos
Joining is typically much quicker and less intrusive. And more often than not, you can immediately start gaming with free Gold Coins. However, identity verification is necessary for redeeming Sweeps Coins for prizes in the real world. This usually involves the need to upload an ID and proof of address.
Real Money Casinos
Because of stringent regulations, these platforms must have Know Your Customer (KYC) checks done at the earliest possible stage - with billions of dollars in fines issued to companies failing to perform the required checks. Hence, you will need to authenticate your identity prior to depositing, playing, or withdrawing money. While all of this is very necessary for extra security, it means that you have to wait longer to start playing.
4. Game Variety and Software Quality
Sweepstakes Casinos
The range of games is generally limited here. Almost all platforms for sweepstakes games give prominence to slot-style games and only a few provide online table games or virtual bingo. In an industry usually dominated by huge conglomerates who barely pay attention to the little guy, in-house developed games for sweepstakes are usually complemented by some small-sized studios with the objective of fulfilling the criteria of the sweepstakes mechanism.
Real Money Casinos
Because licensed casinos often have renowned software developers such as NetEnt, Evolution, Playtech, and Microgaming, players have access to a broader collection of top-quality games, including 3D and video slots, progressive jackpots, live dealer games, poker, roulette, blackjack, and baccarat.
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5. Payouts and Prize Redemption
Sweepstake Casinos
To win cash prizes with these types of casinos, you’ll first need to check a few boxes. For redemption, Sweep Coins must be over a minimum threshold (e.g., 50 SC) with several processing time periods usually lasting several days between that and redemption. Additionally, there are usually limits set upon redemption of daily or weekly.
Real Money Casinos
Earnings are paid out in real currency and can be withdrawn quickly, depending on the payment method involved. Credit and/or debit cards, bank transfers, e-wallets such as PayPal or Skrill, and Cryptocurrencies (in some cases) usually provide such options. High payout limits can be associated with straightforward procedures.
Although sweepstakes and real money casinos provide players with a good online gaming experience, they cater to different audiences and operate under different rules.
If you want to play legally in locations where online gambling is prohibited, and you don’t mind a longer waiting period for payout, then sweepstakes casinos would be the best option with no upfront monetary risk. On the other hand, if you are living in a jurisdiction where it is legal to gamble online and you want a more straightforward, higher-stakes experience, then real money casinos are your best bet. You’ll also be met with extensive games, speedier payouts, and more aggressive features.
