Understanding Sweepstakes Casinos vs. Real Money Casinos

Written by
fact-check-icon Fact checked by

If you’re in California and new to online gambling, you may have heard the terms real money casinos and sweepstakes casinos and wondered — what’s the difference, and which is right for me?

In this guide, I’ll walk you through the key differences between social and sweepstakes casinos and real online money casinos. We’ll look at how each one works, the pros and cons, and help you figure out which one might be the better fit depending on how you like to play.

Key differences between sweepstakes and real money casinos?

At first glance, social, sweepstakes, and real money casinos all look pretty similar — you’ll find slots, table games, and even live dealers in some cases. However, they are structured differently when it comes to how you play, how you win, and where you can access them — especially if you’re in California. Below, I’ve broken down the main differences into four categories.

How does the currency system work?

Sweepstakes casinos use virtual currency, usually two different types and sometimes three. Gold Coins function as play money, allowing you to try games for free, while Sweeps Coins can be redeemed for real cash prizes. You can get Sweeps Coins for free via daily bonuses, social media giveaways, or by mailing in a request. Real money casinos, by contrast, use actual U.S. dollars — you deposit, play, and withdraw funds directly — but only if you’re in a state that allows it.

What kinds of games can I play?

While both types of casinos offer slots and table games, real money casinos usually have larger game libraries and more partnerships with top developers.  Sweepstakes casinos lean more on exclusive or in-house games. A few even offer live dealer-style games, though not to the same extent.

Where can I access them?

Sweepstakes casinos are legal and available online in many U.S. states, including California. You can play in a browser or via an app without making a purchase. Real-money online casinos are only legal in select states like New Jersey, Michigan, and Pennsylvania.

What’s the legal status in California?

Thanks to California’s sweepstakes laws, sweepstakes sites operate under a regulatory model that makes them legal in  California. Real-money online casinos are legal only in states that have regulated online gambling.

While California has yet to legalize retail or online sports betting or any form of real money online gaming, residents can enjoy free-to-play games at social and sweepstakes sites.

What are the advantages of each type of online casino?

Here’s a side-by-side look at each:

Online Sweepstakes CasinosReal Money Online Casinos
Available in most states due to sweepstakes modelLimited to specific states (NJ, PA, MI, etc.)
Purchase of virtual coins or free coin promotionsDirect cash deposits, requires bank transfers, credit cards
Dual currency system (Sweeps Coins and Gold Coins)Real money
Sweeps Coins can be exchanged for cash prizesWinnings are direct cash
Less regulated, operate under sweepstakes lawsState gaming commissions
Lower direct financial riskDirect financial risk
Often 18+Usually 21+
Safer and legal way to experience online casino-style gamesRegulated by state gaming authorities for consumer protection

Which one is right for you?

If you’re in California, online sweepstakes casinos are your best — and only legal — way to enjoy casino-style games online. They’re free to join, fun to play, and give you a chance to win prizes without depositing money.

Now that you know the differences and advantages of social and sweepstakes casinos and real money casinos, you have the background knowledge to help you choose the platform that suits your goals and budget. You’ll find plenty of entertainment at today’s online sweepstakes casinos.