Are Social Casinos Gambling? What the Law and Research Say

Social casino games imitate gambling but do not pay anything of real-world value, and for that reason they are usually not treated as gambling by law. They are still treated as a form of "simulated gambling" by app stores and researchers, and the research suggests that for a minority of players they can sit close to real gambling problems. Both statements are true, and this guide explains each.

The short answer

• Legally: gambling is generally defined by three elements: you pay something (consideration), the result depends on chance, and you can win a prize of value. A social casino has chance and a paid-for virtual currency, but it has no prize you can take out. Without a prize, the usual definition is not met in most places. A few courts have read the "thing of value" element more broadly, which is why the answer is "usually", not "always".
• Practically: the games look, sound and feel like gambling, they use the same mechanics (reels, cards, wheels, multipliers), and they sell the thing that lets you keep playing. App stores treat them accordingly.
• In research: the evidence on harm is mostly from surveys. It shows who is more at risk, not that the games cause problems.

The three legal elements in plain terms

The sweepstakes model is the reason that "no prize" matters so much: those sites add the prize back, which is why their legal position is under challenge. See Social Casino vs Sweepstakes Casino: What Is the Difference?.

There is one important exception to keep in mind. In 2018 the US Ninth Circuit held, in a case about the Big Fish Casino app, that virtual chips were a "thing of value" under Washington State's definition because they extended the privilege of playing, so the app could count as illegal gambling there. Commentators noted that the court relied on a broad definition in Washington law, and the ruling does not set the rule everywhere. It does show that "no cash-out means not gambling" is not a universal legal truth.

Why app stores rate simulated gambling at the top age tier

Apple's App Store Connect reference defines simulated gambling as "Betting or wagering without using real money or in-game currency that can be exchanged for real money." It lists "Frequent simulated gambling" in the 18+ tier, and "Infrequent simulated gambling" at 13+. Regional rules go further: Apple notes that games with frequent or intense simulated gambling in South Korea need a rating classification number, for example.

Cashout Arcade is built for adults aged 18 and over, asks you to confirm your age on first launch, and carries an 18+ rating.

What the research shows

Most of what is known comes from a small group of Australian researchers who surveyed players. Three studies matter, and each has limits.

Gainsbury and colleagues (2016). An online survey of 521 adults who had played social casino games in the previous year. About 71% said the games had no impact on how much they gambled. About 10% (9.6%) said their gambling overall had increased, and 19.4% said they had gambled for money as a direct result of playing. The effect was more common among men, younger players, people with higher problem-gambling severity and heavier users. The most common reason given was wanting to win real money.

Gainsbury and colleagues (2017). An online survey of 1,554 internet users, analysed for a subgroup of 176 adults who played social casino games and already reported gambling problems. Among them, more frequent and more varied play, and more frequent and larger spending, went with more severe symptoms of problematic social casino use. Playing to escape or relieve a bad mood was the most commonly reported symptom. The authors suggest some problem gamblers may also be at risk from online activities with no money at stake.

King and colleagues (2016). A survey of 555 adolescents, of whom 130 played social casino games and 52 paid. The paying players were more likely to be employed males who played more often, and reported more gambling symptoms and more psychological distress than non-paying players. About two-thirds of the paying players recalled that their social casino use came before real-money gambling.

How to read this evidence

These are cross-sectional or self-reported surveys. They show an association: people who spend more on the games, or who already have gambling problems, report more problems. They cannot show that the games caused the problems, and some people may play both for the same underlying reasons. The samples were also recruited online, and the paying adolescent group was small. A fair reading is that spending and heavy use are warning signs, and that the group at greatest risk is people who are already vulnerable.

For more on the "gateway" question see Do Social Casino Games Lead to Real Gambling?.

Who may be at risk

The surveys above point to the same groups:

• People with existing gambling problems or a history of them.
• Younger players.
• People who play very often or spend more on coins.
• People who play to escape stress or low mood.

If you recognise yourself in the last two, the next section matters.

Signs to watch for

• You play for longer than you planned, or lose track of time.
• You buy coins you had not meant to buy, or you hide purchases.
• You feel irritable or low when you cannot play.
• You chase lost coins by raising bets.
• Playing crowds out sleep, work, study or people.

The Signs of Problem Gambling: What to Look For page covers signs for real-money gambling in more depth.

What we do and do not do in Cashout Arcade

What we do:

• Publish the return to player and biggest win for every game on the Odds page.
• Offer a monthly spend limit that you set yourself, and take-a-break options of 24 hours, 7 days or 30 days that are enforced on our servers and cannot be ended early.
• Keep free routes to play (a free Lucky Pick every 15 minutes, a daily Gift Wall, a login calendar), so nobody needs to buy coins to keep playing.
• Say clearly that coins have no cash value and cannot be withdrawn.

What we do not do: we do not claim the games are risk-free, and we do not claim that playing here is a treatment or a safe substitute for gambling. Each round is independent, and nothing in the app improves your chances in the next round.

If it stops being fun

Take a break, and talk to someone. The Responsible play section lists free, confidential helplines by country, starting with the US National Problem Gambling Helpline. If you are recovering from a gambling problem, casino-style games of any kind may be a trigger, and we do not recommend playing them.