Sweepstakes Casino VS Traditional Casino: Understanding the Key Differences

Discover the difference between sweepstakes casinos and traditional casinos and learn which gaming approach aligns with your audience, budget, and long-term business vision.
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We all are aware of the thrill of online casinos. Now picture that same adrenaline rush on your phone, without risking a dime. That is the charm of sweepstakes casinos, the digital evolution of traditional casinos. Unlike traditional casinos, sweepstakes casinos operate on a “no-purchase-necessary” model. Traditional online casinos rely on real-money wagers and state gambling licenses. On the contrary, sweepstakes casinos use a virtual currency model while staying within the bounds of legality.

So let us dissect these two types of casinos, their operations and what sets them apart from each other. Here we begin!
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What Are Sweepstakes Casinos & How Do They Operate?

Sweepstakes casinos have burst onto the scene like a breath of fresh air in an industry that is constrained by strict regulations. As sweepstakes casino software requires zero investment of real money, it is legal across the United States, with the exception of Washington State. Sweepstakes casino platforms operate under a promotional model rather than traditional gambling frameworks that walks a fine line between entertainment and prize-winning opportunities.

A sweepstakes casino platform functions using a “freemium” model. It closely resembles a real-money casino but it is essentially free to play and must have an Alternative Method of Entry (AMOE) for free. As no actual monetary transactions are involved, operators have the liberty to avoid strict rules and licenses tied to cash-based gambling.

Here are the key features of sweepstakes casinos:

The Dual Virtual Currency System

As mentioned above, sweepstakes casinos only deal in virtual currency that mimics gambling. Every sweepstakes casino has a dual-currency instead of real-money betting. This factor marks sweepstakes casinos different from their traditional counterparts. These two types of virtual currencies are:

Gold Coins:

These perform the role of playing money with no real-world value. These in-game tokens are used exclusively for playing purposes. Players are allowed to purchase Gold Coins with real-money transactions or receive them free through various promotions gimmick such as upon sign-up and other bonuses. These coins are used to play the standard games of the platform. However, one important point to note is that these coins hold no value for cash redemption or prize claims.

Sweeps Coins:

Sweep Coins are the opposite of Gold Coins. These coins can be redeemed for valuable rewards and even cash prizes. However, the catch here is that players can not buy these coins, they can only collect these through rewards, bonuses or promotions.

Random Number Generator

In sweepstakes, Random Number Generator or RNG plays a crucial role in ensuring game fairness and compliance. It is an algorithm that generates random outcomes, making each result unpredictable.

Know Your Customer

Sweepstakes casino platforms also must have KYC or Know Your Customer feature to ensure participants’ accurate personal information, such as location and age to help confirm their eligibility like meeting the legal age restrictions.

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No Purchase Necessary

In order to comply with legal regulations, sweepstakes casino platforms must offer Alternative Method of Entry (AMOE) through which players can enter the sweepstakes without making a purchase or payment. Similarly, the Sweep Coins are also out of the line to be sold. Users get to earn Sweeps Coins via reward programmes or social promotions.

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Responsible Gaming Features

Sweepstakes casinos often incorporate responsible gaming features to maintain a sustainable gaming environment, prioritizing player well-being. It promotes and encourages the users to have safe and enjoyable playing experiences. Such features may include self-exclusion options, spending limits, time restrictions etc.

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What Are Traditional Casinos & How Do They Work?

Traditional casinos, whether standing proud in Las Vegas or operating in the digital realm, follow a straightforward real-money gambling model that has stood the test of time. The process of traditional casinos is simple. It starts with the players depositing actual currency, placing wagers on games varying from poker, blackjack or slots and ends with either withdrawing winnings directly or losing the wagered amount depending on the outcome of the game.

These establishments operate under the watchful eyes of regulatory bodies. For example, the UK Gambling Commission is responsible for regulating and overseeing gaming law in the UK while Nevada Gaming Control Board supervises all gambling operations in the US state of Nevada, including the world-famous Las Vegas casinos. These regulatory laws are designed to protect players and maintain fair play. It is of utmost importance to stay compliant with strict industry standards.
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Key Differences Between Turnkey & Custom Sweepstakes Software

Sweepstakes casinos and traditional casinos may have lots of similarities but after the first glance, an array of differences start to surface.

Legal and Regulatory Frameworks

In traditional casinos, having all relevant gambling licenses is a must which often comes with a hefty fee. The operator of a traditional casino, whether brick-and-mortar or online, has to steer through a complex maze of gambling regulations. These operations also face geographical restrictions as many regions have either banned gambling entirely or imposed strict limitations.

Such hurdles are absent in sweepstakes casinos. These platforms operate under sweepstakes or contest laws and are able to reach markets where traditional gambling platforms can not set a foot. The key distinction lies in avoiding direct real-money wagers and using virtual currencies instead. With no monetary value for gameplay, sweepstakes casino platforms are not considered to be gambling.

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Game Variety

From table games, poker to extensive collections spanning slots and live dealer experiences, traditional casinos will come with a plethora of game catalogs and promise of life-changing potential with its progressive jackpots.

On the other hand, sweepstakes casinos are often seen to have limited options, depending on the platform. Sweepstakes game libraries are often considered to be less extensive compared to real-money casinos. It is also common for the players to report sweepstakes to be less immersive since no real bet is at stake. However, sweepstakes casinos still provide a diverse range of choices, ensuring plenty of engaging gaming experiences. The games range from slot-style games to card and table games. Many providers are aiming to cultivate more options to gradually close this gap.

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User Experience & Games

We may say the casino experience of both the platforms is similar as both offer similar types of games and often live-dealer games. But we can notice that different psychology operates the two. Players at a traditional casino feel the weight of each bet because it is real money. At a sweepstakes casino, the risk is shooed away with non-monetary currency.

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Engagement Strategies

The engagement strategies of the two also differ. In traditional casinos we see the emphasis to be on VIP programs and high-roller perks. Players deposit money for real stakes, and in exchange enjoy several rewards such as free spins, exclusive tables etc.

On the other hand, the emphasis of sweepstakes casinos is on promotions and free play. To draw this in an example, the operators may choose to offer new users Gold Coins and Sweeps Coins upon signup​. Many platforms provide daily login bonuses to ensure the user visits the platform everyday. In addition to that, giveaways and other bonuses also keep the users coming back. The absence of financial risks also means users may play more, increasing overall time spent on the platform.

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Winnings & Payouts

In a traditional casino, the winning and payout methods are straightforward. But in case of a sweepstakes casino, winning amounts typically come in Sweeps Coins. These coins can be redeemed for prizes or cash, often subject to limited options offered by the providers. Many sweepstakes platforms cap how many Sweeps Coins you can withdraw per day or per month. Such payout restrictions are sometimes considered to be a notable disadvantage for players, impacting the overall appeal.

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Which Is the Ideal Choice for You: Sweepstakes Casino vs Traditional Casino?

Picture yourself at a crossroad: one path leads to the glam of dazzling lights of traditional casinos, offering the buzz of real-money stakes, the thrill of high-risk, high-reward games. The other, a quieter yet inviting lane, represents sweepstakes casinos, lined with playful game catalogs, virtual currencies. It is launching sweepstakes casino vs traditional casino, so, which road leads to your jackpot? The right path is more than legal frameworks, it’s about strategy, scalability, market adaptability and the audience you aim to conquer. Let’s decode!

Sweepstakes casinos are a practical and scalable choice for operators looking to:

Enter US markets without needing a gaming license. This reduces the legal burden and shortens time to market.

Build an audience before entering regulated states. A sweepstakes casino lets you build brand awareness, user trust, and even player databases while you work through regulatory approvals.

Use sweepstakes as a brand extension strategy or marketing bridge to their traditional online or land-based casinos. The users of sweepstakes get acquainted with the brand and may become potential real-money players in the long term.

Utilize mobile platforms effectively while bypassing rejections or restrictions in app stores.

On the other hand, the traditional casino model wins if you have the resources and market access to run a licensed traditional casino. It demands hefty costs for licensing and infrastructure. It is rather suitable for established brands with deep pockets. Traditional casinos generate revenue directly through player deposits used for wagering. In contrast, sweepstakes operators rely on alternative streams, such as revenue from Gold Coin purchases or ads.
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Key Takeaways

  1. Traditional casinos thrive on real-money gambling, often having a physical presence and requiring strict licensing.
  2. Sweepstakes casinos operate under sweepstakes laws rather than gambling regulations, allowing them to serve markets where traditional online gambling faces restrictions.
  3. Traditional casinos offer more extensive game selections and straightforward financial transactions while in sweepstakes, Gold Coins and Sweeps Coins form the foundation.
  4. Sweepstakes platforms provide accessibility advantages and introduce more roundabout ways of winning prize redemption.

Empowering Your Business with Sweepstakes Casino Software by GammaSweep

Ready to enter the sweepstakes market? The first thing you need is a robust software solution and this is where GammaSweep shines! Our team offers cutting-edge sweepstakes casino software that comes with everything an operator needs to launch and grow a sweeps brand.

With over 13 years of experience and more than 500 professional developers we provide you with the best of the industry standards. You will get great features on your sweepstakes casino platform including tools to manage and streamline operations, increase customer retention and much more.

We also provide post-launch assistance service to ensure that everything in your platform is running smoothly once it is out in the market.

Ready to deploy your business in just 5 weeks? Connect with us today and achieve your sweepstakes business goals!
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Frequently Asked Questions

Are sweepstakes casinos legal in the US?
Yes, sweepstakes casinos are legal in the US except Washington.
Can I win real money in sweepstakes casinos?
Depending on the brand and their rules, you may or may not win cash prizes, however, you can redeem the winnings for gift cards, or merchandise.
How do sweepstakes casinos make money without cash wagers?
Sweepstakes casino platforms by selling Gold Coins and running promotional ads. Players typically buy Gold Coins to play with real money, and the operator uses those sales revenue.
What is required to launch a sweepstakes casino app vs an online traditional casino app?
Technically, both require robust software, but the criteria differ. A sweepstakes app needs to implement the dual-currency system and it can be distributed more widely via app stores because it is not classified as real-money gambling. On the contrary, online traditional casino apps must implement location-based restrictions and payment withdrawals.
How can GammaSweep help me to start my sweepstakes casino?
With GammaSweep, you can get end-to-end sweepstakes casino software developed and tailored to echo your brand voice. We provide sweepstakes solutions with numerous options of games, coin wallet, game suite, promotions engine, admin and analytical tools and much more! We will also assist you in maintaining compliance and make post-launch hassle-free. In short, we act as your technical partner so you can focus on operations and marketing, rather than building infrastructure from scratch.