What is Social casino?
A social casino is a casino-style game, usually on mobile or social media, played with virtual currency that can be bought but cannot be cashed out for money or prizes.
Players receive free coins and can buy more, but winnings stay inside the game. Because nothing of monetary value can be won, social casinos generally fall outside gambling licensing in most jurisdictions.
The sector has still faced legal challenges, particularly in the US, where some courts have considered whether virtual chips count as a 'thing of value'. Concerns have also been raised about spending by vulnerable players and about exposure of young people to gambling-style games.
Social casinos are distinct from sweepstakes casinos, which offer a route to cash prizes. Social casino revenue comes almost entirely from in-app purchases, and the largest titles are run by major game publishers and gambling suppliers. App store rules and platform policies, as well as consumer protection law, also shape how they can be marketed, particularly towards younger users. Several have settled lawsuits in the US over the legal status of virtual chips.
