The online casino space is constantly evolving. It’s bringing different types of gaming experiences to a growing audience and it doesn’t look like it’s slowing down.
The two big categories of online casinos are traditional online casinos like Bet365, DraftKings, and BetMGM and sweepstakes casinos, including some of the most high-profile names like McLuck, Pulsz, and High 5 Casino.
While these two types of casinos have a few similarities, they cater to vastly different player preferences, risk appetites, and legal contexts.
So, how do these two types compare? Here’s the breakdown.
One of the biggest differences between sweepstakes casinos and traditional online casinos lies in their currency systems.
Traditional online casinos require real money. This means players deposit funds, use them to wager, and, if they win, can withdraw those winnings directly.
For instance, casinos like Bet365 allow players to make deposits using credit cards, bank transfers, or digital wallets. Once the player makes the deposit, they can play slots and table games with actual cash at stake. This direct money-to-money system is as if you walked into a casino and started playing.
On the other hand, sweepstakes casinos use a dual virtual currency system that is a bit different than that of traditional casinos.
Players at sweepstakes casinos, such as McLuck and Pulsz, purchase “Gold Coins” to play games for fun. GC has no redeemable cash value and is solely for entertainment. Get some GC and spin the reels as much as you’d like.
However, when players purchase these GC, they can also receive a bonus of “Sweeps Coins,” which can be used in games that allow the player to redeem winnings for real cash prizes.
This two-tier currency system keeps sweepstakes casinos in a different legal category from traditional casinos. That is one reason they are accessible in most states, but we’ll get into that more in-depth in just a minute.
The distinction can be relatively subtle for newcomers, but it’s an essential feature of the sweepstakes model. Many players really enjoy this system as it allows them to get into the gaming experience with less immediate risk since GC doesn’t represent real money and SC offers a chance for cash prizes.
The legal status of traditional online casinos and sweepstakes casinos is one of the most defining differences between them.
Traditional online casinos are tightly regulated by state regulatory agencies and only operate legally in a limited number of U.S. states where online gambling has been expressly legalized by law. These states include Connecticut, Delaware, New Jersey, Pennsylvania, West Virginia, and Michigan.
In these states, casinos must adhere to strict guidelines, obtain licenses, and follow extensive compliance measures. These are all monitored by state gaming commissions. This high level of regulation not only protects players but also limits the locations where these traditional online casinos can legally operate. On top of that, not all online casinos operate in all of these states. Bet365, for example, only operates its online casino in New Jersey and Pennsylvania.
Taking a look at sweepstakes casinos, they operate under U.S. sweepstakes laws, not traditional gambling laws.
This allows them to be accessible in most U.S. states, even those where online gambling is outlawed. Since players don’t technically gamble with real money (as they’re using the GC or SC currencies), sweepstakes casinos have a much broader reach than traditional casinos.
The sweepstakes model, which enables cash prizes through the use of SC, is considered a legal workaround to typical gambling restrictions. Is it legal? Absolutely. It’s just a different way of going about online gambling. This regulatory flexibility has made sweepstakes casinos particularly popular in regions where players have few other options for online gaming.
When it comes to game variety, traditional online casinos offer a much broader selection and it’s not even close.
Platforms like Bet365 and BetMGM provide a massive range of games, including slots, blackjack, poker, roulette, and even live dealer games. Many traditional casinos also host exclusive titles and progressive jackpots that can offer life-changing payouts to lucky winners, something the sweepstakes casinos just can’t do.
Players can enjoy an immersive experience with live dealers, table games, and the familiar gaming options found in a physical casino setting. The big casinos really try to get the experience as close to a casino floor as possible. They understand it’s more than just winning money, which is nice, but it’s the total experience.
Sweepstakes casinos, however, typically focus on slots. They typically have fewer table games and rarely, if ever, any live dealer options. That’s not to say they don’t have those as some big names like McLuck have recently introduced live dealer games.
While slots are hugely popular on platforms like High 5 Casino and Pulsz, the limited table game offerings can make these platforms feel a bit restrictive for players seeking a wider array of games.
However, sweepstakes casinos often incorporate unique themes, mini-games, and social elements that appeal to casual players just looking to have a little fun.
Many players are more interested in the low-stakes, entertaining atmosphere that sweepstakes casinos provide, which makes the narrower game selection a non-issue for this following.
The risk-reward dynamic is another major differentiator between these two.
Traditional online casinos have a higher risk associated with them because players are betting and playing games for real money.
At a casino like DraftKings Casino, if a player makes a high-stakes bet, they stand to win some cash. Sure, that’s great, but it’s also rare to win big payouts. They can also lose their bankroll just as quickly.
For many players, the adrenaline dose of betting real money and potentially walking away with huge winnings is one of the best parts of the traditional casino experience.
Sweepstakes casinos, however, present a different risk-reward balance.
Since players use an alternate currency like GC, which has no real monetary value, they can play the games without the anxiety of losing their own hard-earned money.
Only when using SC do players have the opportunity to actually redeem SC for prizes, and even then, the risk is typically lower than in traditional online casinos because you can obtain SC through giveaways and contests.
This structure allows players to play at sweepstakes casinos with a more relaxed mindset. They can treat it as casual entertainment rather than high-stakes gambling. However, since sweepstakes casinos can also attract massive player pools on some of the games, winning odds on cashable prizes are usually much lower than in traditional casinos.
This trade-off between lower risk and lower immediate payouts makes sweepstakes casinos popular for those seeking a fun, low-pressure experience while still having the chance of winning a real prize.
The player experience differs quite a bit between sweepstakes casinos and traditional online casinos.
Traditional online casinos often have a more intense, competitive atmosphere. What we mean is, that with real money on the line, emotions tend to run high. They cater to a diverse audience, including casual players and serious high-rollers, and they feature live dealer games that mimic a real casino environment.
Many players appreciate the immersive nature of these casinos, which often include leaderboards, tournaments, and other high-stakes opportunities that create an engaging experience.
Sweepstakes casinos, however, focus on creating a social, casual environment. Their games often have a bright, game-like aesthetic, and many of them incorporate social features that make the experience feel more interactive and less competitive.
Sweepstakes casinos frequently offer several free ways to collect GC or SC, like daily login bonuses, mail-in requests, or social media contests, all of which encourage casual play.
This low-stakes, friendly atmosphere can feel welcoming to players who enjoy a social experience and prefer to avoid the intensity of traditional gambling.
When it comes to deciding between sweepstakes casinos and traditional online casinos, it largely depends on where you’re located and what kind of gaming experience you’re looking for.
Before you can even consider one of the traditional online casinos, you first have to be located in a jurisdiction that allows it and, as we mentioned, it’s only a handful of states.
However, even if you are in one of those states, you might like sweepstakes casinos if you enjoy a high-stakes environment, a broad range of games, and the possibility of significant real-money payouts.
Both options bring unique advantages, and each type of casino fulfills different player preferences and risk profiles. For some, the relaxed, social experience of sweepstakes casinos is exactly what they’re looking for, while others thrive in the more intense, competitive atmosphere of traditional online casinos.
Ultimately, the choice comes down to what you value most in an online gaming experience.