Real Money Online Casinos vs Gambling Based Video Games – What’s the Difference?

Today, the digital entertainment landscape offers a wealth of options for amusement. From social media and video games to real money online gambling and video games that incorporate gambling elements, the choice is vast. With the advancement of technology, we continually seek more: more entertainment, more fun, enhanced graphics, and increased visual and mental stimulation.

The gambling industry has evolved alongside our growing demands. For those who enjoy online video games, traditional online casino gambling may not always satisfy—just as the reverse can be true. Fortunately, the gambling world has adapted, merging two of the most popular forms of entertainment: online gaming and online gambling. While the terms may seem similar, there is a distinct difference between real money online casinos and gambling-based video games.

This article explores the history of online gambling and online gaming, highlighting their key differences and similarities.

Real Money Online Casinos

Gambling with money has long been a part of human culture. In the 1930s, gambling houses were legalized in the United States. Similar to today, taxes collected from the industry were used to fund social programs, with the money being particularly vital during the Great Depression to support those in need.

Today, in addition to physical gambling houses or casinos, online gambling has become a significant trend in the industry. While some online casinos offer play with virtual currency, real money online casinos allow players to wager actual money and win cash prizes. For passionate gamblers, real money casinos provide the ultimate experience.

As online gambling grows in popularity, the need for strict regulations has also increased, ensuring safe gambling practices and protecting users’ data. To determine whether an online casino is reputable, it’s important to consider several key factors.

The best online casinos offer a secure and trustworthy platform where you can play real money games, claim generous bonuses, and you can get your winnings fast at these casinos thanks to quick, safe payment methods. As the online gambling community expands, the best online casinos provide a wide range of payment options. Creating an account is quick, and depositing money is easy through debit/credit cards, bank transfers, or cryptocurrencies like Bitcoin, Ethereum, and Tether. With a global player base, currency conversions often come with transaction fees, which is why cryptocurrencies are becoming increasingly popular. Leading casinos are quick to embrace these digital currencies, offering players a seamless and cost-effective way to deposit and withdraw funds.

Gambling-Based Video Games: Where Entertainment Meets Chance

The fusion of video games and gambling has deeper roots than many people realize. In the late ‘70s and ‘80s, arcades were the go-to destination for Saturday night entertainment. While arcades didn’t officially promote gambling-themed video games, it wasn’t uncommon for people to wager money on their gameplay. Multiplayer video games, in particular, brought people together, sparking social interactions—and occasionally, a bit of gambling.

At that time, home gaming wasn’t yet mainstream, but that didn’t stop people from adding a bit of excitement by betting during their arcade sessions. As arcades began to lose popularity, the Nintendo Entertainment System (NES) helped bring gaming into the home, making video gaming more popular and shaping the gaming culture we know today.

Gambling-based video games, therefore, evolved from the arcade era and Nintendo’s influence into a genre that blends storytelling with elements of luck. Unlike real money online casinos, gambling-based video games don’t focus solely on wagering money. Instead, they incorporate gambling as a feature within a broader game structure. For example, a game might include a casino in its world where players can place bets using in-game currency.

The mechanics of these games often draw from both traditional gambling and video game design. Developers blend classic game design with casino-inspired elements, such as spinning wheels, loot boxes, and betting mini-games. Winning these games becomes part of the overall challenge and storyline, often serving as a requirement to level up or progress in the game.

For example, Fallout: New Vegas has incorporated casino tournaments into the Fallout world. 

The casino experience in gaming closely mirrors that of real-life casinos, offering games like slots, roulette, blackjack, and more. These gambling-based tournaments add an extra layer of excitement to the game, providing a break from combat and quests. To join, players can either pay an entry fee or complete specific missions. Once inside, they’re given a set amount of in-game currency (chips) to place bets.

Casino tournaments often focus on achieving the highest winnings within a set time frame or completing a series of challenges to determine the winner. Based on performance, players can earn cash, rare items, or unique rewards.

As the industry continues to grow, more developers are experimenting with these gaming models. With advancements in graphics and interactivity, video games that incorporate gambling elements have become increasingly popular in the entertainment world.

Differences: Payouts and Regulations

While they may seem similar at first glance, there is a key distinction between real money online casinos and gambling-based video games in terms of what players can win and how they win. In real money online casinos, the main goal is to win cash or tangible rewards. Each game is designed with direct prizes in mind, which means the stakes are often high, and the risk is real. In contrast, gambling-based video games typically offer in-game items, currency, or progression benefits as rewards, with little to no direct monetary value.

Another significant difference lies in regulation. Real money casinos operate under strict legal frameworks that govern everything from game management to payouts and player data protection. These regulations are put in place to ensure fairness, security, and to protect players' interests. However, according to the Unlawful Internet Gambling Enforcement Act (UIGEA), video games based on gambling often fall under different regulations. 

As they usually involve virtual currencies or in-game rewards rather than direct cash payouts, the regulatory environment is looser.

Similarities: Chance, Excitement, and Strategy

The similarities between real money online casinos and gambling-based video games are clear—after all, a game is a game, right? To keep players engaged, both types of games need to incorporate core elements like chance, excitement, and strategy.

While chance was once more closely associated with online casinos, it has now become an integral part of video game gambling as well. Players can enjoy various casino games while completing in-game missions, with randomness playing a crucial role in the outcome, just as it does in traditional casino settings.

Strategy is another common feature. In games like blackjack or poker, players must make strategic decisions to increase their chances of winning. Similarly, gambling-based video games challenge players to think critically and make calculated moves. It’s rarely just about luck—developing effective strategies is what makes these games so popular and keeps players coming back for more. The gaming industry holds a significant position in the US economy, with a gaming revenue of $66.65 billion in 2023. A significant portion of revenue in the gambling industry comes from slot machines and table games in casinos, which together account for about three-quarters of the total gross gaming revenue each year. As video game gambling continues to rise in popularity, the future looks promising for the US, especially given the potential tax revenue that could be generated from the expanding industry. This growth offers a promising outlook for economic benefits and further investment in both gaming and regulation.