Yes, the free game is different to the real one. Exactly the same thing happens on online Roulette. Play the free game and employ a Martingale strategy and you will make thousands in free chips, make some really stupid bets (25% of BR) and see how difficult it is too lose! Try the same thing with real money and you will quickly lose everything.
Free games are not regulated as they don't involve money. How could they be regulated? What if I put a free BJ game on the web? Do I need a licence? No, because it's just a game, it's not gambling. Similarly, the gaming authorities will not be monitoring the results of free-play as it doesn't involve gambling and therefore isn't under their jurisdiction.