Social Casinos vs. Real-Money Casinos: Key Differences Explained

Last Updated: Sep 25, 2025
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Fact Checked By: PJ Wright

The main difference between social casinos and real money casinos is that social casino games are played using virtual currencies and thus don't provide cash prizes, while real money casinos offer real money gambling and real money prizes. Another difference is social casino games are free to play, whereas traditional online casino options require deposits and risking actual cash.

Summary of Social Casinos

The best social casinos provide a wide range of online casino games, including slots, tables games such as roulette and blackjack, as well as live dealer games. However, instead of risking actual funds, you play for fun rather than for money.

Social casinos are legal in most US states and use virtual currencies for online gaming to mimic and casino experience of an online casino without providing actual online gambling. Here's where you can find out more about free online casino games.

What Are Real Money Casinos?

Just like social sites, real money online casinos offer a traditional casino experience, with titles from well-known developers. However, with these sites, bettors participate in real money gambling where they can win cash. They are only available in a few states, notably Michigan, New Jersey, Pennsylvania, West Virginia and Connecticut. One state to keep an eye on is Missouri as Missouri online casinos could launch in 2026 as well.

Because these online casino options are real money sites, they are subject to strict regulations and are required to hold licenses to operate in those states.

Key Differences Between Social and Real Money Casinos

FeatureSocial CasinosReal Money Casinos
CurrencyVirtual coins, gems, entries etcReal money deposits
PayoutsNo payouts or prizes unless it is a sweepstakes site where you can redeem SC coinsCan cash out real money prizes or withdraw deposits
Legal StatusLegal in most of the United StatesLegal in states where online casino gaming has been legalized
Access RequirementsTypical minimum age requirement is 18+, although it is 21+ in some statesMinimum age requirement is 21+ states with real-money casinos
Risk FactorNo risk of real money gambling losses but you can make in-app purchases and can set limits on yourselfThere is a risk of real money losses
MonetizationOffering in-app purchases that can include free sweeps coinsMainly profits from processing wagers

Are Social Casinos and Real Money Casinos Legal in The US?

Yes, both social casinos and real-money casinos are legal in the U.S. Social sites offer social gaming for free and thus are legal nearly everywhere across the country. Online gambling involves wagering actual money on casino games, with the possibility of winning real cash prizes, and thus require state licensing and regulation. Here is how to sign up for social casino sites and play in many states, but online gambling is not allowed in other states.

Comparison of User Experience

Social casinos are designed for casual players who want to enjoy casino games without having to risk their own money, while real-money sites involve just that - real money and the opportunity to win (or lose) that stake.

You can collect welcome bonuses from each, but with the High 5 Casino promo code you receive gold coins, sweeps coins and diamonds - all virtual currency - while with the BetMGM Casino bonus code, you would receive $25 of real cash on the house plus a deposit match of your real-money deposit. When comparing a social casino vs real money casino, here are a few notable differences.

Social Casinos

  • Games are played via virtual currencies.
  • Social sites emphasize community interaction.
  • Casual and fun-focused.

Real Money Casinos

  • Offers online gambling with real money.
  • Regulated gameplay and real rewards.
  • Online casino play only offered in states with legalized online gambling.

Revenue Model Differences

A key difference in social casino vs casino operations is how each of these sites generates revenue. It boils down to social gaming vs gambling.

Social Sites

These generate revenue via in-app purchases that allow you to keep playing these games for fun, as well as ads.

Real Money Sites

These generate profits when customers lose. Every casino game - whether social or real-money - has an established RTP (return to player) that is independently confirmed and represents how much on the dollar a player can (on average) expect to win. For example, if a slot has a 97% RTP, that means the "house" or casino can expect to bank three cents on the dollar. The RTP goes a long way into determining what are the best payout casinos available.

What Are The Risks and Rewards?

Keep in mind the risks and rewards of playing at social casinos vs real money casinos.

Social Casinos

  • Risks: There is no risk of real money gambling losses since these games do not offer online gambling; that said, whether it be a game like Candy Crush or online slots on a social site, playing games can result in addictive behavior and you can set limits on your in-app purchases.
  • Rewards: The entertainment of these games and social interaction, plus the potential for some prizes at sweepstakes casinos where you can redeem via sweeps coins.

Real Money Casinos

  • Risks: You can incur losses at an online casino if your wagers land in the loss column.
  • Rewards: You can win cash prizes at an online casino if your wagers land in the win column.

Conclusion on Social Casinos vs. Real Money Casinos

The main difference between social casinos and real money casinos is that social casinos offer online gaming that you play for fun with virtual coins, although you can earn free SC coins that can be redeemed for cash prizes, including from sign-up bonuses such as the McLuck promo code. A real money online casino is where you can win cash profits if your wagers are successful. You can claim welcome offers there, including via the Caesars Casino promo code.

Social Casinos vs Casino FAQs

Can you win real money on social casinos?

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You cannot win real money at social casinos, but you can redeem sweepstakes coins for various prizes that include cash prizes at sites with sweepstakes-style games.

Are real money casinos safe to use?

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Real money casinos are safe to use because they are licensed and regulated in the states where they operate and thus must meet security and fairness requirements.

Is it safer to play at a social casino?

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When asking is it safe to play social casinos online, note that these are businesses aiming to build long-term customer relationships. They are considered to be as safe to play at as an online casino if you stick with operators we highlight on this page, because we only review and suggest casinos of any type that are legal, licensed and regulated. 

How do real money casinos work?

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Real money casinos offer gambling where you can win or lose money depending on the result of your bets. Their primary revenue source comes from processing these wagers.

Why do people play social casinos?

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People play at social casinos because online gaming is fun and to interact with friends online. There are social casino games free to play, an environment that allows customers to enjoy these games in states where a real money online casino cannot operate.

Where are real money casinos legal?

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A real money online casino can only operate in states where online casino gambling is legal like Michigan and New Jersey. In other states, the only legal online casino experience is via social casinos.

Where are social casinos legal?

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Social casinos are legal in nearly every state in the USA. This availability could increase to even more states in the future depending on each state's legislative process.

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Tyler Olson
Contributor since July 2025
Tyler Olson is an accomplished online casino expert in the United States with experience navigating the evolving world of digital gaming. With a deep understanding of platforms and betting strategies, Tyler has established himself as a trusted advisor and authoritative voice in the online casino community. Whether you're seeking reviews of casinos, gambling strategies, or just staying updated on the latest trends in the online gambling industry, Tyler's expertise is an invaluable resource for anyone gambling online.
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