Real-Money Casinos vs. Sweepstakes Casinos: The Great US Gaming Divide

Online casino gaming in the US is broadly divided into two categories: real-money and free-play. The former is what we talk about a lot here at WSN. It’s where US online casino brands such as BetMGM do their thing.

However, away from real-money casino bonuses and progressive jackpots topping $1 million, there’s a part of the industry where people play for free. Why would they want to do that when there’s money to be won online?

Stick around, and I’ll not only explain why free-play casino gaming is booming, but also why it’s become a way for players in certain states to win cash prizes.

Sweepstakes vs. Real-Money Casinos

The two categories I outlined a moment ago form the basis of my discussion, but there’s a secondary split I haven’t mentioned yet. The free-play casino sector contains two types of gaming sites: social and sweepstakes.

Social casinos are designed purely for fun. Users play with virtual coins (usually called Gold Coins), and they can’t win cash prizes. Sweepstakes casinos also have free-play games via Gold Coins, but they also offer cash prizes. Let me explain.

What Are Sweepstakes Casinos?

Sweepstakes online casinos are free-play gaming sites that operate in accordance with US sweepstakes laws. This means they offer free-play games with the added incentive that users can earn cash prizes.

Unlike a traditional sweepstakes contest (which is basically a prize draw), the sweepstakes element in online casino gaming comes via a system known as redemptions. Here’s how redemptions work at US sweepstakes casinos online:

1. The player joins a sweepstakes casino.

2. The player obtains some Gold Coins through a promotion. The player also receives some Sweeps Coins as a gift.

3. The player wagers their Sweeps Coins by playing casino games.

4. The player can now redeem (aka exchange) their Sweeps Coins for a prize.

That’s a brief overview of how sweepstakes casinos work. What I want you to take from it is the fact that they’re free-play platforms. However, there is a legal way to redeem Sweeps Coins for cash prizes.

Can Social Casinos Be Sweepstakes Casinos?

Yes. Social casinos, as I’ve said, are free-play platforms. Users wager a virtual tokens known as Gold Coins for entertainment purposes. Gold Coins don’t have any value and can’t be redeemed for prizes.

Social sites that have a secondary currency (Sweeps Coins) are also classed as sweepstakes casinos. Sweeps don’t have any real-world value, but they can be redeemed for prizes at a predefined conversion rate.

Why Do Sweepstakes Casinos Exist in the US?

Sweepstakes casinos were a relatively niche part of the US gaming industry back in 2020. However, as real-money casinos gained popularity in New Jersey, Michigan, and other gambling-friendly states, voids opened.

Those voids are states where real-money online gambling isn’t regulated. Sweepstakes casinos have filled those voids. They offer an authentic online casino gaming experience without the financial risks. That means they operate on the right side of US gambling law.

Then, because players can turn virtual credits into cash prizes, sweepstakes sites have become the ideal alternative to real-money casinos in places where gambling isn’t regulated.

How to Redeem Sweeps Coins for Cash Prizes

You now know that sweepstakes casinos offer free-play games with the option to redeem coins for cash prizes. Here’s how you do it:

1. Create an account at one of the best sweepstakes casinos.

2. Top up your balance with Gold Coins (you can always do this for free).

3. Purchase a Gold Coin package and/or claim the latest bonus offer to earn Sweeps Coins.

4. Play games using your Sweeps Coins.

5. Go to the cashier page and redeem eligible Sweeps Coins for a gift card or cash prize (typically paid via bank transfer or in cryptocurrency).

That’s how to redeem Sweeps Coins at sweepstakes casinos. There are some caveats. Firstly, purchases are optional. You don’t have to buy Gold Coins, but it’s the easiest way to get Sweeps.

Secondly, Sweeps Coins have a 1x playthrough. Thirdly, the conversion rate at most casinos is 1:1, which means 1 SC (Sweeps Coin) is worth $1.

Finally, you must be a verified user to make redemptions. In general, you’ll need to redeem at least 25 SC for gift cards and at least 100 SC for a cash transfer.

What Are Real-Money Casinos?

Real-money gaming sites are the digital equivalents of land-based casinos. They’re available 24/7 and offer thousands of slots, some of the best table games you can find, and innovative options, such as crash and live dealer games.

The main difference between real-money casinos and their sweepstakes equivalents is that chips have value. If you have $50 worth of online casino chips, you can withdraw them for $50 in cash.

So, once you’ve made a deposit, you can wager that money. Anything you win is paid in cash that can be withdrawn instantly, unless you’ve got an active bonus.

Speaking of bonuses, that’s another difference between real-money and sweepstakes casinos. Sweepstakes sites offer bonuses, but they don’t have a cash value. Real-money casino bonuses do have a USD value.

Key Differences Between Sweeps and Real-Money Casinos

Before we continue, let’s recap. Sweepstakes casinos are free-play gaming sites that allow you to convert virtual credits to cash prizes. In contrast, real-money casinos allow you to make cash wagers and, in turn, win cash prizes.

The table below summarizes the differences between sweeps and real-money casinos.

Sweepstakes vs. Real-Money Gambling: Which One is Best?

There are advantages and disadvantages to both types of casino gaming. However, it’s not really a question of which one is best. In most cases, you’ll only have access to real-money or sweepstakes gaming.

For example, if you’re in Florida, you’ll only have access to sweepstakes sites because real-money gambling isn’t regulated. In New Jersey, you can use real-money casinos such as FanDuel Casino and Caesars Palace Online Casino.

So, in general, your options are dictated by state law. That being said, there are advantages and disadvantages to consider in both instances. So, before I talk a bit about strategy, here are some points to consider:

Sweepstakes Casinos Key Points:

•  Can be accessed in states without regulated real-money gambling.

• Available to players aged 18 or older.

• It’s possible to play games for free and earn cash prizes.

Real-Money Casinos Key Points:

• Legally allowed to offer cash prizes and bonuses.

• Licensed by state gambling regulators.

• Available to players aged 21 or older.

Sweepstakes Casino Strategy

In reality, you don’t need a different strategy to play sweepstakes casino games because they’re identical to their real-money counterparts in terms of their rules, RTP values, house edge, and payouts.

Let’s say you’re playing blackjack at a sweepstakes casino. The house edge will still be approximately 0.5% if you follow basic blackjack strategy. The fact you’re playing with virtual credits doesn’t matter. The fundamentals remain the same.

In fact, that’s why people enjoy sweepstakes casino gaming. It’s a chance to play some of the best casino games without the financial risk. Therefore, my advice is this: play responsibly and have fun. Enjoy the fact that you can play games for free and treat cash prize redemptions as an added bonus.