The Difference Between Social Casino vs. Sweepstakes Casino
Table of Contents
Playing at an online casino is a fun and thrilling recreational activity for lots of players globally. The thriving online casino industry is proof of that, valued at 63.5 billion dollars in 2022. Incidentally, online casinos have limited legal acceptance worldwide, with varying degrees of permissions and legal compliance based on particular jurisdictions. This makes it tricky for a lot of players to access and play casino games legally.
This is why social casinos and sweepstakes casinos offer stunning alternatives for players who belong to a country/jurisdiction where online gambling is restricted. Besides, new players can feel eager to first explore these no-money options before venturing into real gambling. Moreover, hardcore players can sometimes be interested in enjoying the free versions of casino games instead of always wagering money. To sum it up, both social casinos and sweepstakes casinos have a huge demand among online players.
Although both of these online gaming models involve a no-purchase-necessary gameplay, social casinos and sweepstakes casinos have significant differences between them. In this blog, we will explore these differences and help you decide which one can be an attractive business model for you as an operator or business owner. Keep reading!
What Is A Social Casino?
How Does A Social Casino Work?
Social casinos have a mechanism similar to that of traditional online casinos. First, a player needs to sign up on the platform with his personal details. Once the process is successful, the player can log in and start playing the games. However, unlike online casinos, here the player doesn’t have to make a monetary deposit. The gambling-style games are completely free to play on a social casino which runs on virtual currencies, most commonly, Gold Coins. A player receives a handful of Gold Coins when he signs up, and later on gets the chance to collect more by winning the games, as rewards for completing tasks, or as bonuses. A player can also choose to spend real money to buy Gold Coins if he wants to play more frequently or bet more. However, all winnings are virtual and have no real-life value. If you’re wondering about what are social casino games, well, they are similar to the ones you can find in online casinos. The only difference is, you don’t need to deposit any money before playing the social casino games.
List Of Popular Online Social Casinos
McLuck
McLuck is one of the most popular social casinos in the USA. It is the most famous for offering amazing slot games of various types. It integrates stunning casino games from popular providers like NetEnt, Pragmatic Play, and more.
Jackpota
Jackpota offers a mix of casino games including slots, blackjack, roulette, slingo, etc. and includes 700+ free casino games to explore. It has robust customer service and a positive reputation among players for being user-friendly.
High 5 Casino
High 5 Casino is an exciting platform for both novice and experienced players because it includes games of different difficulty levels. Its offerings include slots, table games, dice games, and more.
Pulsz
Pulsz again focuses more on slot games, offering a Vegas-style experience for players. This platform has some of the most popular online slot games in the world and has a huge player base.
Clubs Casino
Clubs Casino is another free social casino offering non-stop entertainment for players. It offers games including slots, table games, mini games, bingo, and more. It also promotes responsible gambling.
What Is A Sweepstakes Casino?
How Does A Sweepstakes Casino Work?
In order to play at a sweepstakes casino, a player first needs to register on the platform with his personal
information. Upon successful registration, players will be able to log in to the platform and explore all the games it
has in store.
A sweepstakes casino runs on virtual currencies and it has a dual currency system. In order to successfully play and win
real prizes, a player must know about the functions of these two virtual currencies, i.e. Gold Coins and Sweep
Coins.
In a sweepstakes casino, Gold Coins are used by players for playing different games, and used for betting. Players are
primarily given the Gold Coins for free. Later, they can purchase more for real money if they want to play more. Sweep
Coins are the special currencies of a sweepstakes casino that cannot be purchased. Instead, they must be given to the
players as bonuses or rewards. These Sweep Coins can later be used to redeem prizes with real life values.
List Of Popular Online Sweepstakes Casinos
Fortune Coins
Fortune Coins is one of the most popular sweepstakes casinos online in the USA. Established in 2022, it provides lucrative bonuses and rewards to players and offers several casino-style games to explore.
MegaBonanza
MegaBonanza is an attractive sweepstakes platform that offers thousands of casino games to play for free. Games include slots, table games, card games, poker, bingo, roulette, and more.
The Money Factory
The Money Factory attracts players with unbelievable rewards and bonuses, which also helps them to keep the player engagement high. It has a secure, mobile-friendly platform that houses 1000+ casino style games in different genres.
Wow Vegas
Another highly popular option in online sweepstakes, wow vegas offers you highly addictive games with advanced graphics. It also offers live dealer games for added excitement.
No Limit Coins
No Limit Coins is another famous sweepstakes casino known for its extravagant bonus system. It keeps the player interest high with engaging events like lucky draws, daily spin-the-wheel, login bonuses, and more.
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Key Differences Between Social Casino & Sweepstakes Casino
Legal Compliances
While traditional online casinos are considered to be a part of the gambling industry, and hence involve extensive legal
compliances to operate legally in a country, in the case of social and sweepstakes casinos, the scenarios are somewhat
different.
As sweepstakes casinos don’t involve direct money wagering, it is not considered gambling in most jurisdictions.
However, since it involves prizes that have real-life value, which can amount to higher values, it still attracts a
number of legal requirements that are mandatory to fulfill.
Social casinos, on the other hand, neither involve direct money-wagering, nor do they offer real-value prizes. Hence, it
doesn’t require any specific legal compliance related to gambling laws. These online platforms operate just like other
online gaming platforms.
Entry Requirements
Social casinos don’t have any special entry requirements. They’re treated just like any other online gaming platform.
Sweepstakes casinos, on the other hand, might have some specific requirements based on the jurisdiction it operates in.
Most sweepstakes casinos require the players to be of a legal age of 18 or above (in some cases, 21 and above).
Currency System
Social casinos run on virtual currency. Players are given Gold Coins when they sign up on a social casino platform.
Players use those gold coins to play various games on the online social casino. When they run out, they have the option
to purchase more through the in-app purchase option.
A sweepstakes casino games software too run on virtual currencies. However, they have a dual currency system, i.e. Gold
Coins and Sweep Coins. Gold Coins are the primary currency that are used for playing different games on the platform.
Sweep Coins have a separate function though. These coins are rewarded to players for winning at different games, or as
bonuses for completing particular tasks. These coins are redeemable for real-value rewards, such as cashback, merch,
sponsored products, discount coupons, vouchers, etc.
Rewards System
Speaking of the dual-currency system, this brings us to the next difference between a social and sweepstakes casino,
i.e. the rewards system. As stated above, in sweepstakes casinos, players stand a chance to win real-value rewards by
redeeming Sweep Coins that they collect by playing games.
But social casinos don’t offer any such rewards to the players. The outcomes of social casinos are limited to virtual
rewards and the fun associated with it.
Gaming Purpose
The above-mentioned reason also creates another difference between social casinos and sweepstakes casinos, i.e. the
purpose of gaming. Since sweepstakes casinos offer real-value rewards to the players, they are driven by this motivation
to win attractive prizes.
However, in the case of social casinos, the gaming purposes include recreation, social interaction, and an overall
satisfaction derived out of gaming, without any monetary gain.
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Pros & Cons of Social Casino
Social casinos allow players to interact with each other and enhance the ‘social’ appeal of the games. It is focused on pure entertainment without any financial risk. Social casinos include a lot of diverse game options, so boredom doesn’t set in easily.
Although players sometimes spend money on social casinos to play more frequently and purchase Gold Coins, the outcome, i.e. the rewards won at a social casino has no real value.
Pros & Cons Of Sweepstakes Casino
Since sweepstakes casinos don’t involve direct money betting, it is not legal in many jurisdictions where traditional casinos are banned.
The biggest advantage of sweepstakes casinos is that even without having to spend any money, players can win attractive rewards with real value.
Sweepstakes casino games softwares are mobile-friendly and they offer an engaging recreational activity for mobile users.
The Sweep Coins redemption rules and process can sometimes be complex and lengthy.
Social vs Sweepstakes Casino: Which One Is A Better Business Option?
Legal Complexity:
When it comes to legal compliance, establishing a social casino online is easier. While both social casinos and sweepstakes casinos are exempted from being categorized as ‘Gambling’, sweepstakes casinos still attract some legal complexities in different jurisdictions. This is due to the fact that sweepstakes casinos offer prizes with real value. Special licenses, registration fees, and bonds might be required to open a sweepstakes business.
On the other hand, social casinos are treated just like other online gaming websites and they don’t attract any specific legal compliance related to casinos or gambling.
Revenue Generation:
When it comes to revenue generation, sweepstakes casinos are a better option. Although both social casino and sweepstakes casino models run on a no-purchase-necessary rule, they still have direct and indirect revenue streams attached to them.
A social casino generates revenue through ads, in-app purchases, VIP memberships, etc. The amount of revenue depends on the quality of service provided by the social casino.
A sweepstakes casino also generates revenue through similar streams, i.e. ads, in-app purchases, special offers and deals, premium memberships, etc. However, sweepstakes casinos typically show better potential for revenue generation because they offer players prizes that have real value. This makes players more interested in playing at a sweepstakes casino.
User Engagement:
In terms of user engagement too, it is easier to attract and engage players with a sweepstakes casino because of its real-life rewards system. Alternatively, social casinos can be a good pastime for players, but it fails to attract as much engagement as a sweepstakes casino.
Based on the above-mentioned factors, Sweepstakes Casino will be a better business model because of its revenue generation potential, enhanced user engagement, variety of games, cross-platform compatibility, mobile-gaming option, and more benefits offered by it.
Key Takeaways
- A social casino is a platform that offers online casino-like games for free. It is free-to-play but it also has in-game purchase options. However, it doesn’t offer any rewards or prizes with real-life value.
- A sweepstakes casino is similar to a social casino, offering online casino-like games. It has a no-purchase-necessary clause, but players can also choose to perform in-game purchases if they want. Interestingly, in sweepstakes casinos, players are rewarded with prizes that have real-life values.
- When it comes to legal compliance, a social casino is treated just like a normal gaming platform and doesn’t require any special legal permission. However, if a sweepstakes casino involves prizes of a hefty amount, it needs to fulfill certain regulatory compliances which can vary based on the jurisdiction it’s operating under.
- From the point of view of a business, it is more profitable to set up a sweepstakes casino, as compared to a social casino. Since sweepstakes casinos offer real prizes, they attract more players, and they are more interested in spending money on the platform, thus, boosting revenue generation.
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