Sweepstakes casino (definition)

A sweepstakes casino is a site or app that looks like a social casino but uses two kinds of virtual currency, one of which can be exchanged for cash prizes under sweepstakes rules. Operators generally present the second currency as a free entry rather than something bought, which is how they argue the model is not a lottery.

Cashout Arcade is not a sweepstakes casino. It has one currency, coins, which have no cash value and cannot be withdrawn, exchanged or turned into prizes.

The two-currency model

In the typical design, the first currency is bought and used for play only. The second is handed out alongside it as a bonus and is the one that can lead to a cash prize. Whether that line between "purchase" and "free entry" holds up is exactly what regulators and courts argue about, which is why the model is contested and why different places have treated it differently.

Why the label matters

Rules for sweepstakes casinos are changing, and the legal position depends on where you live. Because of that, this page does not list places where they are allowed or banned; check your local regulator. Advertising platforms also separate the categories: since 28 October 2025 Google's Ads policy has named sweepstakes casinos as ineligible for its social casino certification.

Common misconceptions

• "A social casino and a sweepstakes casino are the same." The test is whether any currency can lead to a cash prize. In a social casino none can.
• "If it's free to play, it is not gambling." Free play with no prize is generally not gambling, but a prize path changes the analysis.
• "All apps with coins offer prizes." Many, including Cashout Arcade, offer none.

Read the Social Casino vs Sweepstakes Casino: What Is the Difference? guide for a longer comparison. See Virtual currency (in-game coins explained) for how coins work. This page is general information, not legal advice.