HomeGuidesSweepstakes Casinos vs Online Gambling

Sweepstakes Casinos vs Online Gambling

Sweepstakes casinos continue to explode in popularity in states where real online gambling isn’t legal, however, there is still some confusion around exactly what they are. Today, we take a closer look at sweepstakes casinos vs. online gambling, and what to expect when getting involved.

Johnny Covers By: Johnny Covers
| Last Updated:
Table of contents

Summary

  • Sweepstakes casinos operate under a "no purchase necessary" model, allowing players to obtain sweeps coins through free methods and use them to play for real money prizes, while gold coins are used purely for fun.
  • Traditional online gambling sites involve wagering directly with real money, with less frequent promotional offers, and winnings are directly in cash.
  • Sweepstakes casinos are legal in nearly all states except Idaho and Washington due to their operation under sweepstakes laws, while traditional online gambling sites are restricted to a few states with stringent legal and licensing requirements.

The Difference Between Sweepstakes Casinos and Online Gambling Site

While they appear very similar on the surface and users, sweepstakes casinos and traditional online gambling sites operate under two distinct models.

Sweepstakes casinos lean on the “no purchase necessary” model that allows players to obtain sweeps coins through various free methods such as welcome offers or ongoing promotions. Players can also make purchases of sweeps coins and gold coins. These virtual currencies are then used to play casino games, either for fun or for the chance to win more sweeps coins. While sweeps coins are used to gamble for the chance to win real money, gold coins are used purely for fun and to learn the different games on the platform.

In contrast, traditional online gambling involves wagering directly with real money, which can then in turn produce real money as winnings. Because of this, promotional offers are less frequent and produce less currency that is used for playing at traditional online casinos. 

At the core of the differences between sweepstakes casinos and traditional gambling are the legal frameworks for each.

Legal Framework of Sweepstakes Casinos

Sweepstakes casinos operate under sweepstakes laws, which allow them to offer real prizes without being tagged as traditional gambling operators.

This key loophole allows sweepstakes casinos to operate where traditional online casinos can't operate, as they can currently operate in all states except for Idaho and Washington.

Read more: Are sweepstakes casinos legal?

Legal Framework of Online Gambling Sites

Because players are betting real money on games, traditional online gambling falls under a strict legal framework that varies by state with different rules depending on the jurisdiction.

Making the legal framework for traditional gambling even more difficult to navigate, traditional gambling also must adhere to state and federal licensing requirements, and compliance issues by jurisdiction, and is under more scrutiny to protect players and ensure fair play.Traditional online casinos can only operate in Pennsylvania, Nevada, New Jersey, Connecticut, Michigan, and West Virginia.

Pros & Cons of Sweepstakes Casinos

Pros

  • Accessibility in almost all states (except Idaho and Washington) due to fewer legal restrictions.
  • "No purchase necessary" mode offers numerous promotional opportunities with virtual currency for signing up and logging in.
  • Ability to win prizes without risking real money, providing a low-risk introduction to casino games.
  • Opportunity to learn and enjoy casino games without the financial risk.

Cons

  • Cash prizes are often lower compared to traditional gambling.
  • Virtual currencies (gold coins and sweeps coins) can be confusing and hard to understand.
  • Lack of consistent regulatory framework leads to uncertain terms and conditions.
  • Despite using virtual currency, the potential for problem gambling remains, necessitating responsible gambling practices.

Pros & Cons of Online Gambling Sites

Pros

  • Potential for substantial winnings due to high-stakes gambling.
  • More regulated environment, providing increased security for players.
  • Wider variety of game and betting options compared to sweepstakes casinos, enhancing the overall gambling experience.

Cons

  • Risk of significant financial losses due to the ability to bet large sums of money.
  • Limited availability across the country, as only a few states have legalized traditional online gambling.
  • Strict regulations in states where it is legal, creating challenges for operators.
  • High-stakes betting can create intense pressure for players.

Which Option Is Right for You?

Now that you have all the information you need on sweepstakes casinos vs. traditional online gambling sites, you might be wondering which option is right for you. For starters, you'll have to check your local jurisdiction’s laws for both sweepstakes casinos and traditional online gambling. 

Next, you’ll have to ask yourself what your tolerance for risk is, and if you are comfortable with the likely potential of losing money. If you are not, sweepstakes casinos might be the right option for you, as you can play casino-style games without making a purchase or depositing any funds.

If you are tolerant of risk, however, and are seeking high-pressure thrills, then traditional gambling might be the better option for you. Whichever option you go with, make sure that you gamble responsibly and effectively manage your bankroll.

Author Details

Johnny Covers

Johnny Covers

Johnny Covers is a veteran in the gambling industry, bringing years of experience and deep knowledge to the table. His work has been featured on top platforms like FantasyPros, Betting Pros, Sportsbook Review, and OddsChecker. As part of the SweepsCasinos.US team, Johnny focuses on testing and reviewing sweepstakes casinos, ensuring players receive accurate and trustworthy information.