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The phrase "play money" is correct and usable in written English.
You can use it to refer to money that is used in a game or to simulate an economy, such as monopoly money or poker chips. For example, "My kids love to play with monopoly money, it's like their own pretend play money."
Dictionary
play money
noun
Noticeably fake bills or coins intended for use as toy currency, especially with board games, rather than currency in a legitimate exchange market.
Exact(59)
East Germans counted their aluminium play money".
The bills were actually play money.
"It's just play money," she said.
"This is not their play money.
The Hudson Valley Bank sponsored the play money.
Salaries were merely play money — a pittance compared to bonuses.
It was, he said, "like spending play money".
Some observers suggest that this might work only for play money.
It has a sister site, FullTiltPoker.net, where only play money is used.
They will make their own "play" money in the correct currency of the culture, and use it to purchase goods.
Similar(1)
"It's almost like play money-it's prepaid in the psychological sense," Prelec says.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com