This guide breaks down sweepstakes casinos vs. online casinos, how they compare, and highlights the key differences players should be aware of.
Sweepstakes casinos are very popular in the United States and are mostly free to play, but you can win gift cards, cash, and real-world prizes.
They differ from traditional real-money online casinos in a few ways, mainly in how to win money, the legal framework, game offerings, and risk.
Sweepstakes casinos vs. online casinos
This article explains the key differences between sweepstakes casinos and online casinos.
The traditional online casino
Online casinos offer a more traditional gambling experience, allowing players to deposit funds into their accounts and play games for real money. When players win and have enough funds in their account, they can then withdraw them.
Sweepstakes casinos
Sweepstakes casinos work differently, as they use two virtual currencies, neither of which has real cash value. The names can vary depending on the sweepstakes casino's theme, but they are usually Gold Coins and Sweeps Coins. You can play with each coin type, and Gold Coins are free.
If you accumulate enough Sweeps Coins, you can redeem them for prizes, mainly gift cards, and even real money. One Sweeps Coin is usually equivalent to $1.
Players typically receive Gold Coins and very few Sweeps Coins when they register for an account. For example, a welcome offer could include 50,000 Gold Coins and two Sweeps Coins. Players can also buy bundles of Gold Coins, but Sweeps Coins cannot be purchased directly. You can acquire them by buying Gold Coin bundle packages and by participating in promotions, social media giveaways, and mail-in offers.
The legal framework
One of the key differences between the two types of casinos concerns the legal framework. Typical online casinos are licensed and regulated by state government-run agencies, such as the New Jersey Division of Gaming Enforcement (DGE) and the Michigan Gaming Control Board (MGCB).
On the other hand, sweepstakes casinos are ruled by sweepstakes laws, not gambling laws, like typical online casinos. Because of this, they do not need a license from a gaming body, allowing them to offer their services in states where online casino gambling is not legal. This is a big issue, as only eight states currently have legal online casino gambling, with Maine recently added to the list.
Sweepstakes casinos have been in the news lately, as some states are trying to ban them, seeing them as an explicit form of real-money gambling. For example, a recent bill was proposed in Washington, D.C., which would legalize online casino gambling and ban sweepstakes casinos.
Games, slots and other offerings
Another difference between sweepstakes casinos and online casinos lies in their game offerings. Typically, sweepstakes casinos offer mostly slots, along with some simple, classic table games. Online casinos offer these as well, and other options like scratch cards, crash games, and many classic table game variants.
Live betting is also prevalent at many online casinos, but very rare at sweepstakes casinos.
Online casinos in the eight legal states can also offer sports betting, whereas sweepstakes casinos cannot.
Risk factor
Similar to comparisons between prediction markets and online sportsbooks, a key difference is risk. While Sweeps Coins can often be redeemed for real money, sweepstakes casinos are mostly for free play, so they carry little financial risk.
On the other side of the coin, there is financial risk when playing for real money that you deposit at traditional online casinos.
