Definition
Virtual Currency
Also known as In-Game Currency, Play Money, Coins, Credits
By Abhinav VasudevanReviewed Editorial policy
In short
Virtual currency is in-game money with no cash value, used in social and sweepstakes casinos. It can usually be bought but not redeemed, which is what keeps social casino play outside gambling law.
Virtual currency is a balance that exists only inside a platform. Coins, credits, chips, gems, the naming varies and the property is the same: it can be spent within the product and not converted out of it.
The one-way valve
The defining characteristic is that value flows in but not out.
- You can buy it with real money
- You can win it by playing
- You cannot redeem it for anything
This asymmetry is what removes the “prize” element and keeps social casinos outside gambling law.
In the dual-currency model, Gold Coins are pure virtual currency in this sense, while Sweeps Coins are deliberately not, they are structured as sweepstakes entries precisely so that they can be redeemed.
The abstraction effect
Virtual currency amplifies the same psychological distance that chips create in a physical casino, and it does so more strongly.
A balance of 2,500,000 coins bought for $9.99 bears no legible relationship to money. Spending 50,000 on a spin feels different from spending 20 cents, and the denominations are typically chosen so that they do.
Large round numbers, frequent small top-ups and bundled “value” packages all work in the same direction.
Where it appears beyond gambling
The model is the standard monetisation approach for mobile gaming generally, and the mechanics overlap heavily. Loot boxes, gacha pulls, premium currencies with awkward denominations that leave residual balances.
Several jurisdictions have examined whether loot boxes constitute gambling, with different conclusions. Belgium banned them outright; the UK concluded existing law does not cover them but pressed for industry measures. The debate turns on exactly the same question, whether a virtual reward counts as a prize.
What to watch
- Denomination inflation. Large coin numbers obscure the underlying cost
- Residual balances. Bundles priced so you rarely end at zero, leaving a reason to buy again
- Time-limited offers, which compress the purchase decision
- No refunds. Virtual currency purchases are generally final, and app store refund policies are the only recourse
Common questions
What is virtual currency in gambling?
In-game money that can be bought and won but never redeemed. That one-way flow removes the prize element, which is what keeps social casinos outside gambling law.
Why do virtual currency balances use such large numbers?
Because a balance of 2,500,000 coins bought for $9.99 bears no legible relationship to money. Denominations are chosen so that spending 50,000 on a spin feels different from spending 20 cents.