Sweepstakes Casinos vs. Traditional Online Casinos: Why Players Are Choosing the Former

Since 2020, a new type of iGaming website has appeared in the US, and it has quickly become a major competitor to real money gambling sites: this is the sweepstakes casino model, or social casino.

From the outside, social casinos look incredibly similar to their RM alternatives, but looking past the game offering, features and processes, there are various differences and these are the main reasons why US players are registering at them in record numbers.

What’s the difference - how these two types of iGaming sites differ

As more companies and platforms invest in gaming, new types of gaming sites have appeared, but sweepstakes casinos have easily been the most popular. They feature similar games to real money online casinos, but there are differences to be aware of, and these are explained below:

Real money gambling casinos

Real money gambling sites like BetMGM, DraftKings, and Caesars allow customers to deposit money into their account. That money is then used to play casino games such as video slots and blackjack. Winnings from the games are paid in real money, and customers can then withdraw their winnings from their account according to the specific terms and conditions of each site.

Sweepstakes casino

Sweepstakes casinos or social casinos do not need the use of real money. Neither are any of the games played using real money. Instead, these sites feature virtual currencies - usually Gold Coins and Sweeps Coins. This currency is used to play the games with, and it is usually given out for free via means such as a welcome bonus and daily login bonus.

Usually, players can purchase additional Gold Coin packages if they want to, and receive Sweeps Coins as a bonus gift. Typically, Gold Coins have no real value, whereas Sweeps Coins can be redeemed for cash prizes or electronic gift cards.

Differences

The above table shows the main differences between these two types of iGaming sites. Concerning licenses, legitimate real money casinos need a gambling license from a relative authority, such as the Malta Gaming Authority, for example.

Sweepstakes casinos do not operate with a gambling license. Instead, they must comply with US sweepstakes regulations for the states they legally operate in. This includes requiring no purchase necessary to play the games or enter sweepstakes contests, not allowing real money deposits, and not allowing real money gambling.

Why people are drawn towards sweepstakes casinos

This curated list shows the most popular sweepstakes casinos currently available, but it’s important to understand what sets them apart from RMG sites, and why they have become so popular. This is due to a combination of risk, availability, the frequency of promotions, and the entertainment value.

Less involved risk

One of the main reasons that US players turn to sweepstakes casinos is the lower risk factor. With real money casinos, customers have to deposit funds from their bank account to play the games, and this can’t be avoided. Despite gambling controls and responsible gambling tools, this is still a much higher risk type of iGaming site. Customers can possibly lose their deposit money and quickly spiral into debt or gambling problems.

Sweepstakes casinos, on the other hand, have a much lower risk factor. This is because the Gold Coins and Sweeps Coins can be obtained for free via multiple ways, such as daily login bonus and mail-in request bonus. Customers aren’t forced to use money just to play the games.

There are Gold Coin packages that can be purchased using real money, however, but these are optional. Because of this, there simply isn’t the same need to involve money at social casinos, nor the chance for customers' spending habits to spiral out of control.

Wider availability

Another huge benefit is the availability of sweepstakes casinos in the US. Unlike other countries such as the UK and France, gambling laws in the US are controlled on a state-by-state basis. So, real money online casinos are only currently available in:

• Connecticut.

• Delaware.

• Michigan.

• New Jersey.

• Pennsylvania.

• West Virginia.

That’s just 6 of 50 states and means that most of the US population has no access to real money casino gambling. In contrast, most US social casinos are available in 40+ US states due to US sweepstakes regulations. Common states that prohibit the operation of sweepstakes casinos include:

• Washington.

• Idaho.

• Nevada.

• Michigan.

Therefore, comparatively, the US public has far greater accessibility to sweepstakes casinos than they do real money alternatives.

Constant promotions and giveaways

Real money gambling sites usually offer a welcome bonus for new customers, and there is often a VIP or loyalty scheme. Outside of that, promotions are infrequent.

In contrast, due to the regulatory need to provide free play games, sweepstakes casinos have a large variety of promotions, contests, and giveaways on a daily basis, including:

• Welcome bonus.

• Daily login bonus.

• AMOE request bonus.

• Refer-a-friend scheme.

• Social media contests and giveaways.

• First purchase bonuses on Gold Coin packages.

Once customers have claimed their initial welcome bonus, which is usually Gold Coins and Sweeps Coins, they can then usually claim a daily coin login bonus every 24 hours. The sites typically have a fantastic referral scheme too, and the special mail-in request bonus or Alternative Method of Entry bonus allows customers to send a postal request for free Sweeps Coins.

Entertainment and fun is prioritized

There is virtually no difference between the game libraries of real money online casinos and sweepstakes casinos. Customers can typically play the following games at social casinos:

• Video slots.

• Classic slots.

• Single player table games.

• Live dealer games.

• Instant-win arcade games.

• Scratchcards.

• Bingo.

• Poker.

Entertainment is prioritized due to the lack of emphasis on real money gambling and winning huge payouts. The games are also still provided by reputable third-party developers. Pragmatic Play, who has global renown, features hundreds of games at the most popular sweepstakes casinos, for example.

It’s not uncommon for social casinos to have game libraries that exceed 1,000 titles.

More community engagement

Real money gambling sites are often solitary and there is no implementation of player-to-player engagement other than the chat system in live dealer games.

Social casinos have multiple community engagement features. For example, Stake.us has a live community chat that customers can speak to each other. And most sweepstakes casinos also have thriving social media channels on Facebook, Instagram, and X where customers can enter contests and comment on posts.

Lastly, slots tournaments and giveaways are commonplace where customers can compete against other players to try and get Gold Coins and Sweeps Coins prizes.

Why people are drawn towards sweepstakes casinos

As you can see, sweepstakes casinos have multiple positives, and it’s easy to see why players are turning to them and moving away from real-money alternatives. The relatively low-risk environment of using virtual currencies compared to the dangers of real money gambling is a major factor.

The sweepstakes sites themselves are also well-developed, with huge game libraries that easily compare to their real-money counterparts. Add into that a persistent range of virtual currency bonuses and giveaways, and these sites offer genuine entertainment value without the associated risk.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes