Online casinos have become more popular these days. It is now easy to go online and find one from any corner of the world. However, it is worth noting that not all online casinos work the same way. There are different types of platforms, and they work differently. There are the traditional ones, which are more popular, and then there are sweepstakes casinos. Sweepstakes are now growing rapidly, especially in states with strict regulations about gambling with real money.
1. The Legal Framework is Different
One of the major differences between traditional casinos and sweepstakes is that they don’t follow the same legal rules. Regular casinos are subjected to stricter rules, and they must have gambling licenses. Sweepstakes casinos use promotional laws; therefore, they are exempted from gambling regulations, but not entirely. They must still comply with consumer protection and special rules that have been laid out for sweepstakes gaming, such as providing free alternative methods of entry (AMOE).
This is the major reason why sweepstakes casinos can confidently operate in places where gambling is banned. In the United States, for example, only seven US states allow people to bet with real money. They are Michigan, Pennsylvania, New Jersey, Delaware, West Virginia, Connecticut, and Rhode Island. Sweepstakes, on the other hand, can cover these states and even more because they are not subject to these laws. So instead of using real money, they use virtual currencies and a “no purchase” method of operation.
2. They Both Use Different Methods of Payment
One of the biggest differences between them is the method of payment for each platform. With traditional casinos, you deposit real cash, place bets with that money, and withdraw your winnings straight to your bank account.
On the other hand, sweepstakes casinos use a dual-currency system that can be a little confusing at first. You’ll see Gold Coins and Sweeps Coins. Gold Coins are just for entertainment; they have no real-world value at all. Sweeps Coins are the ones that matter because you can redeem them for actual money after meeting the platform’s playthrough requirements.
You can’t directly buy Sweeps Coins, which is part of what keeps the system legal. Instead, you get them free through bonuses and giveaways, or as freebies when you purchase Gold Coins. Some platforms even let you request Sweeps Coins for free by mailing in a request. This might sound old-school, but it’s what keeps everything legal.
3. Game Selection Varies More Than You’d Think
Another difference between these online casinos is game selection. Even though there are well-known games like poker, blackjack, roulette, and slots on both platforms, you will find even more options to pick from on traditional casinos. They have so many games for their users. They also offer live dealer games, jackpots, and high-stakes poker rooms for players. Traditional casinos have more options than sweepstakes casinos simply because of their gambling licenses, which allow them to have as many options as possible.
Sweepstakes casinos, on the other hand, keep things simpler. A lot of them focus on slot-style games and basic table games. You won’t find live dealers very often, and most times, there is no sports betting, unlike traditional online casinos. This simplicity, for some players, is why they prefer sweepstakes over traditional casinos. In fact, player acquisition for sweepstakes casinos grew three times faster than real-money online casinos in late 2024 largely because of its simple model.
4. Bonuses and Rewards Follow Different Rules
Most times, traditional casinos offer several bonuses like match bonuses, free spins, and VIP programs for players. These come with wagering requirements. This means that you need to bet the bonus money several times before withdrawing anything.
However, sweepstakes casinos offer something different. They only give out free Sweeps through welcome bonuses, daily login rewards, or social media challenges. Some of them let you earn coins by referring friends or playing mini games.
This way, they can stay legal but still keep their players engaged at the same time. These rewards may not be as big as those offered by traditional casinos, but they are exciting to receive all the same.
5. The Withdrawal Process Is Not the Same
When it comes to traditional casinos, the withdrawal process is you win money, meet any bonus requirements, and then transfer funds to your bank, card, or e-wallet. Some platforms even offer instant withdrawals, depending on your payment method and location.
With sweepstakes casinos, you can only cash out Sweep Coins since Gold coins do not have any value. And then, you can only withdraw in small amounts, unlike traditional casinos. Many players don’t mind because the aim of playing is for entertainment, not to make money.
6. Each Platform Has Different Players
Most of the people who play on sweepstakes casinos are people looking for casual fun and entertainment, nothing serious at all. They attract players who are already looking for where to play simple games and get free rewards with low risk. These casinos also try to include leaderboards, social features, and friendly competitions to make it a little more fun. They also target players from states where gambling is restricted or not available.
Traditional casinos, however, go for seasoned players who want to bet with real money. They offer premium features and great casino experiences to keep them coming. Here, you will find high rollers, professionals, and people who enjoy live games and are willing to spend more time and money.
7. Regulation And Oversight Are Different
Traditional casinos are required to follow all the strict regulations of the gambling commission. They must follow rules about fair games, money laundering, fraud detection and prevention, age restrictions, and player safety. Licensed auditors must test every game to ensure there is fairness. They are regulated by state-level commissions like the New Jersey Division of Gaming Enforcement (NJDGE).
This is not the same for sweepstakes casinos; they are not bound by the same regulations and oversight. They are regulated by FTC, State Attorneys General, and Consumer Laws since they are not required to hold gambling licenses. This is also why they are easy and cheaper to start. However, some states are starting to pay more attention to sweepstakes casinos. It has been recently reported that states like New York, Connecticut, and California are reviewing laws that can restrict sweepstakes casinos.
