Real Money Online Casinos vs. Sweepstakes Casinos in the USA Heading Into 2026
Sweepstakes are all the rage these days as you can't help but miss all those commercials inundating our favorite television shows. They promise the best in online casino play with the potential for winnings, all for "free".
You'll notice that the word "free" is in quotation marks. There is a reason.
Online sweepstakes casinos operate under sweepstakes laws, whereby a virtual currency is used to place your bets. In order to actually win all those top cash prices, real money purchases will be required.
The real money online casino model employs actual real money deposits and winnings utilizing a credit card or cryptocurrency such as Bitcoin. Often times, these casinos feature matching deposits.
Planet 7 actually features a 450% deposit, which translates into a much greater bonus than the initial deposit amount made. Read reviews on Planet 7 casino, or any web casino for that matter, and one will find that the welcome bonus offerings are among the biggest incentives to join.
The typical sweepstakes casino lacks any such welcome bonus since the whole premise behind this model is "no purchase necessary". Again, a purchase may not be necessary, just don't expect to get much in return.
Ease of Receiving a Payout: Sweepstakes Casinos vs. Real Money Online Casinos
I don't know about you but the whole concept of turning so-called "sweeps cash" into real cash almost seems foreign. Social casinos even use their own currency symbols when applied to "sweeps cash" or "virtual gold coins".
While learning how to move funds via cryptocurrency wallets does require some degree of practice, the ease of doing so cannot be duplicated once getting the hang of this process.
Credit card deposits still rank among the more popular and most internet casinos do accept Visa and Mastercard. However, payouts using a credit card directly are not common in the Web casino ecosystem.
Payouts are typically done via Bitcoin and other cryptocurrencies. Depending on the casino, processing takes place 7 days a week, even on Sunday.
You will need to find a cryptocurrency exchange available to US customers. Connect your bank account or credit card to said exchange (they'll often request to employ a microdeposit into the exchange such as 5 cents during setup).
Create a Bitcoin wallet as an intermediary between the exchange and online casino. Never deposit or withdraw directly between the casino and exchange.
Gambling911.com suggests not holding all funds in your wallet (instead maintain a small portion if you prefer), and you will want to transfer directly from the exchange into your bank account same day. The entire process typically takes under an hour as a minimum number of confirmations must occur on the blockchain network. The price of Bitcoin and similar cryptocurrencies fluctuates. If you request a payout of $1000, it is possible the price of Bitcoin will rise and you will end up with $1100. It's also possible the price of Bitcoin will drop and your payout will become $900. Conducting the transfer within two hours of the payout mostly assures you keep your $1000 minus any exchange fees.
USDT (also known as Tether) is another common cryptocurrency available with the majority of real money online casinos. USDT, unlike Bitcoin, is pegged to conventional fiat currency like the US dollar. As such, fluctuations in value are nominal.
The Reddit community is a great place to start learning about sending and receiving Bitcoin as well as other forms of cryptocurrencies like Tether.
The Legal Quagmire
Real money online casinos are available in most US states. Only a handful of states actually regulate iGaming.
Michigan, in particular, is more heavy handed about forcing its residents to use the regulated casinos.
Unlike your traditional online casino, which either operate within the regulated state framework or are licensed within an international jurisdiction, sweepstakes casinos often maintain a presence within the US.
States like California have recently banned the sweepstakes casino model entirely. Others have or are attempting (with some degree of success and failure) to do the same.
The sweepstakes component is something that can land an operator in hot water when explicit language appears in state law.
Case in point, California's new law (signed by Governor Gavin Newsom) amends § 17539.1 of the Business & Professions Code and adds § 337o to the Penal Code, creating a prohibition on certain “online sweepstakes games” that simulate casino-style gambling and use a dual-currency model.
Heading into 2026, Gambling911 anticipates more US states to challenge the sweepstakes casino market.
Traditional iGaming with real money may benefit from prediction markets like Kalshi and Polymarket, which have aggressively challeged efforts by states like Nevada to stymie this activity with greater success to date.
- B.E. Delmer, Gambling911.com
