5 Differences Between Real Money Casinos & Sweepstakes Casinos

Trying to figure out if you should play at a real-money casino or a sweepstakes casino? You're not alone! Both offer a wide range of games (slots, blackjack, roulette, and more!) and plenty of excitement, but they're actually quite different.

In this article, I'll break down 5 key differences between real money casinos and sweepstakes casinos, helping you understand everything from the way they work to the benefits each one offers.

By the time we're done, you'll have a clear idea about which type of online casino is the best fit for you. Let's get started!

The biggest difference between real money casinos and sweepstakes casinos is their legal status and availability across the U.S. 

Online casino gambling is currently legal in just seven U.S. states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. If you’re located in any of these states, you can sign up and play at real-money online casinos like BetMGM, Caesars, and DraftKings.

Sweepstakes casinos, on the other hand, are much more widely accessible. Since they are technically free-to-play platforms that don’t involve real-money wagering, they are legal in most states. This means you can sign up and play at these casinos from almost anywhere in the country.

However, a few states, like Idaho, Michigan, and Washington, have banned sweepstakes casinos because they see them as a loophole that lets online gambling operate under the cover of a legal promotional system. These states have already taken measures to prevent these platforms from accepting players within their borders.

Another key difference between real-money casinos and sweepstakes casinos is how you place bets. 

As you might expect, real-money casinos require players to deposit actual cash into their accounts to make bets. Every time you wager, it’s with real money, and any winnings are paid out as cash. While this means there’s real financial risk involved, it also gives you the chance to win real money.

Sweepstakes casinos, however, use a different system with two types of "coins": Gold Coins and Sweeps Coins.

• Gold Coins are used to play games for fun, with no chance of winning real money.
• Sweeps Coins let you play for a chance to win real prizes, similar to a sweepstakes contest.

It’s important to note that at sweepstakes casinos, you can't deposit real money directly into your account. Instead, you buy Gold Coin packages, which often come with free Sweeps Coins as an added bonus. For example, if you buy $10 worth of Gold Coins, you'll typically receive 10 FREE SC as well.

When it comes to cashing out winnings, real money online casinos and sweepstakes casinos handle it much differently.

At real-money casinos, withdrawing winnings is usually very easy and straightforward. You request a withdrawal, and your funds are delivered directly to your bank account, digital wallet, or another cash-out method, depending on your preferences. The minimum withdrawal amount is often low, typically around $5 or $10.

Sweepstakes casinos, however, offer prize redemptions instead of direct withdrawals. You can usually redeem your Sweeps Coins for either cash prizes or gift cards at a rate of 1.00 SC = $1.00.

• Cash Prizes: Typically sent to your bank account, but usually require a higher minimum redemption amount—often $50 or $100.
• Gift Cards: For retailers like Amazon, Walmart, or Starbucks, with a lower minimum redemption threshold—usually around $10 or $25.

Overall, cashing out at sweepstakes casinos is a bit more complicated and less player-friendly, mainly due to higher minimum redemption thresholds and fewer cash-out options. 

That said, you'll be happy to know that most sweepstakes casinos do pay out real money, either through cash prizes or gift cards, although the process can take longer and involve more steps than at real-money casinos.

Next, when it comes to bonuses and promotions, sweepstakes casinos tend to have the upper hand.

Almost every sweepstakes casino offers a no-deposit bonus for new players, which is pretty nice. These bonuses can vary widely, ranging from just a few dollars worth of Sweeps Coins to as much as $25 worth of FREE SC.

On top of that, sweepstakes casinos will typically match your first purchase by 100% or more. For example, if you buy $50 worth of Gold Coins, you might get an extra 100 Sweeps Coins for free.

Other ways you can claim free SC include:

• Daily login bonuses, where you get free Sweeps Coins just for checking in every day.
• Social media giveaways, with opportunities to win free coins through special promotions on Facebook, Instagram, X, TikTok, or other platforms.
• Mail-in requests (AMOE), where you can send a handwritten letter to the casino’s headquarters to claim free Sweeps Coins. This is done to comply with laws and ensure that promotional sweepstakes contests remain free to enter.

Meanwhile, real-money online casinos do offer their fair share of bonuses and promotions, but they’re usually not quite as generous. 

For example, no-deposit bonuses are pretty rare, with sites like BetMGM and Borgata being among the few that still offer them. Instead, you’re more likely to see deposit match bonuses (where the casino matches a percentage of your deposit) or insurance on your first-day losses.

You can also get involved in tournaments, receive exclusive VIP rewards, and participate in other ongoing promotions, but overall, the variety and frequency of offers at real-money casinos just don't really stack up to what sweepstakes casinos provide.

One of the biggest advantages real-money online casinos have over sweepstakes casinos is that they are licensed and regulated by state gaming authorities, such as the New Jersey Division of Gaming Enforcement or the Pennsylvania Gaming Control Board. 

This means real-money casinos operate under strict oversight and are required to meet certain standards to ensure a safe and fair experience for players.

Some of the key advantages of these regulations include:

• Fair Play & Game Integrity: Real-money casinos must undergo regular audits to ensure their games are fair and not rigged.
• Security: Licensed casinos are required to use secure encryption technology to protect player data and financial transactions.
• Responsible Gambling: State regulations require real-money casinos to offer tools for self-exclusion, setting deposit limits, and other responsible gambling measures to help prevent addiction.
• Dispute Resolution: Players have clear channels to resolve disputes through the state’s gaming authority or the casino’s regulated process.

Sweepstakes casinos, on the other hand, do not operate under the oversight of gaming authorities because they don’t involve real-money wagering. This means they don’t face the same regulatory requirements, and players may not have the same protections in place if problems arise.

That said, most sweepstakes casinos follow industry standards in areas like fairness, security, and player protection. While they don’t have the same level of oversight as real-money casinos, they are still generally safe and legitimate platforms.