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Written by: Filip Gromovic Reviewed by: Nashon Khamala

Read time: 9 minutes

We often use social and sweepstakes as synonyms when describing casinos, and not many people can differentiate between the two. They maintain good legal status in virtually all regions across the globe. So there is a very thin line that divides social casinos and sweepstakes like a hot knife through butter, and we will tell you everything you need to know.

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What are Sweepstakes and Social Casinos

Sweepstakes gambling sites have the Gold Coins (GC) which is the ticket to playing the different titles on the platform. Players will get a lot of them as a welcome bonus and as daily login rewards. The second type of currency is the Sweeps Coins (SC) whose use closely resembles gambling at a traditional casino. This in-game currency cannot be purchased but is redeemable for real money prizes.

Some ways players can get SC include participating in giveaways, topping the leaderboard in tournaments and contests, daily log-in, special reward programs like VIP programs and purchasing gold coin packages. SC grants players entry into sweep tournaments and events and can be redeemed for real money or gift cards.

Social casinos, on the other hand, are strictly designed for entertainment purposes. Although they still offer players the vibe of money gambling, playing with money or any potential of redeeming prizes is forbidden. The focus here is on bolstering social interactions between the players.

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Key Differences Between Social and Sweepstakes Casinos

The major difference between social and sweepstakes platforms is that in the former there is no form of prize associated with winning, while in the latter, some winnings are redeemable as cash prizes or gift cards. Another remarkable difference is that the former has only a one-coin system, while the latter implements a dual-coin system. The two are mostly identical in almost every other way, including the types of games they offer. But do you know there are two types of social sites?

The first types are the ones that offer no prizes. Users may have the option to purchase virtual currencies and win on table games or slots – but the focus remains on playing without spending. 

In the second type, there is some form of prize redemption, but not cash or gift cards. They are on the borderline between social and sweepstakes. While players entertain themselves with their favorite games, they accrue points, which they can turn in for branded prizes. This is one of the promotional tools that some companies use to boost the popularity of their brand.

Sweepstakes casinos offer players the chance to redeem their in-game currency for real cash or gift cards. This makes them the meeting point between recreational users and money-chasing punters. Each of these models has its place, and it is up to you to decide which is best for you.

Nevertheless, recreational websites are important entry points for would-be users. It allows them to learn the ropes and get familiar with the various features of money gambling and build a winning strategy without making a deposit or feeling any form of pressure.

Areas of Differences	Social Casinos	Sweepstakes Casinos
Purpose	Strictly for entertainment	Entertainment and real cash prizes
Coins	Gold Coins	Gold Coins and Sweep Coins
Purchases	Sometimes	Yes
Redeem the prize for money	No	Yes
Playthrough requirement	Doesn’t have any	Has a playthrough requirement for prize redemption, usually 1x to 3x

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How Each Casino Operates

Both social and sweepstakes are alternatives to real money gambling websites. They offer players the chance to enjoy casino-style games including online slots, roulette, blackjack, baccarat, bingo, craps and more for free. Although pure entertainment is at the core of these platforms, how they operate differs slightly.

How Social Casino Works

You are likely wondering how platforms make money if they enforce the «no purchase necessary» policy. Well, their primary revenue is from players who purchase additional virtual currencies (gold coins) or in-game items to enhance their sessions. Since players don’t get any form of reward in return, any money made from the sales stays with the site – after taxes, of course. To recap, here are the key features of the operation of a social casino:

• Only virtual currencies are used, and they are either obtained freely as bonuses or purchased using real money.
• Gambling with real cash is not allowed.
• Prizes cannot be redeemed for real cash.
• They have social features including leaderboards, chat functionalities and friend lists that encourage interaction between users.

How Sweepstakes Casino Operates

Sweepstakes combine the social feature with the opportunity to earn real cash. It has every feature offered by a recreational site with the addition of a redeemable currency. While GC is used purely for entertainment purposes, SC can be redeemed for cash once the player has met the platform’s playthrough requirement. In summary, here are the key features that define the operation of a sweepstakes casino:

• Features a dual-currency system (GC and SC).
• Sweeps coins cannot be purchased and are only given to users as a reward for completing certain tasks or a bonus for purchasing gold coins.
• GC is used purely for entertainment, while SC can be redeemed for cash prizes.

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Legal Status and Availability

Thanks to iGaming, social casinos are available all over the world. They are free and exclusively for entertainment, without any form of prize or earnings attached to them. Due to the use of virtual currencies and the risk-free nature of the platforms, they are not bound to local laws or restrictions. Perhaps, you already noticed that you can access them without turning on your VPN, unlike the experience you would get if you tried accessing traditional sites from certain regions.

For sweepstakes sites, the story is slightly different because of the cash redemption element. For example, in some countries, sweeps are regulated and must abide by federal and state laws that dictate who can play, and the way prizes are redeemed.

However these platforms do not pay taxes. They are also not required to enforce consumer protection policies like know-your-customer (KYC) and responsible gaming (RG) – although reputable platforms score extra points by having them in place already.

For regions where residents are allowed to interact with these platforms, players must be 18 years and above to sign up, unlike on traditional sites, where the accepted age is 21 years or older.

As an example, the Gaming Association released a two-page memo that urged municipal attorneys general and gaming regulators to investigate sweepstakes platforms to determine if their operations are in compliance with the extant laws and regulations. The trade group which also represents the US casino industry is calling on lawmakers to enact legislation in ambiguous areas to prevent unlicensed operators from exploiting any regulatory loopholes to offer real money sessions.

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Making the Right Choice

New punters will likely find it challenging to choose between what social and sweepstakes casinos offer. However the right choice mostly boils down to your motives. If your intention is to have fun without worrying about the cost of not winning or trying to get familiar with gambling games, a recreational casino should be an easy pick.

On the other hand, if your eyes are on making money while having fun, a sweepstakes site is where you should be. Once your intent is clear, the next question is how to choose the right platform. 

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Safety and Responsible Gaming

Whether you are playing at social casinos or sweepstakes, it’s essential that you never take your safety for granted. Always look for platforms where your privacy will remain secure, even when on a shared device. Ensure the website has some kind of encryption technology that hides the communication between your device and the platform. Reputable platforms rely on SSL encryption technology to safeguard user’s personal and financial records.

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The regulatory landscape for sweepstakes casinos continues to evolve, with increasing focus on consumer protection and responsible gaming measures.

Filip Gromovic, Senior iGaming Writer at FreeSlots99

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Bad actors often create clones of popular websites with minor name alterations to trick unsuspecting victims into handing over their personal and financial details. It is always important to crosscheck the site’s URL before entering your details. Download the platform’s mobile app when available. That way you can overcome the problem of visiting the wrong URL.

When considering safety, the reputation of the software provider is important, especially when you are playing for potential prize redemption. Reputable developers try to maintain good standing in the industry. They use random number generators (RNG) to determine the winner, and this software is frequently audited by third-party regulators to ensure they are in line with industry expectations.

Beyond safety the prospect of winning cash in sweepstakes can push your adrenaline into overdrive in ways that your gaming frequency may affect your lifestyle negatively. Some platforms have Responsible Gaming features and policies that help users maintain a healthy balance between gaming and lifestyle. To achieve this they use tools that allow players to set limits on the number of bets they can place in a day or the size of virtual currencies they can spend in a day. 

Other steps you can take to ensure that you keep your gaming frequency in check include setting purchase limits and timers that will remind you how long your session has lasted. Monitoring your transaction history to determine when you are spending above your budget is also a necessity, though.

Well, such platforms reduce the number of people who have a gambling addiction and other problems that can appear when playing online with real money. This is very important nowadays, as responsible gambling systems cannot stop everyone from playing too much on real money websites.

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