Most sweepstakes casino users view them as gambling, AGA study finds

According to new research by the American Gaming Association (AGA), most consumers who utilize online sweepstakes casinos view them as gambling. The study comes as these platforms face mounting legislative and regulatory pressure across the US, and as the operators attempt to brand their products as entertainment.

A surge in advertising and consumer engagement with these unregulated platforms has prompted renewed scrutiny from state attorneys general, gaming regulators, and lawmakers. The regulated industry says they operate in legal gray areas to bypass oversight, consumer protections, and responsible gaming standards.

The AGA report, drawing from data compiled by analytics firm Sensor Tower, reveals that nearly half of all online real-money casino advertisements viewed by consumers in early 2025 were for offshore sweepstakes casinos. These operators disproportionately target densely populated states, says the association, where gambling demand is high and regulations may be limited or unclear.

“These operators present themselves like legal, regulated platforms – but they operate outside the law and regulation,” said AGA Vice President of Government Relations, Tres York. “There are few, if any, responsible gaming tools, no regulatory oversight, and no consumer protections. It’s a dangerous subterfuge that puts players at real risk.”

Key findings from the report highlight the extent of consumer engagement with sweepstakes casinos. Ninety percent of users consider sweepstakes casinos to be a form of gambling, and 69% describe sweepstakes casinos as places to wager real money. 

Sixty-eight percent of players say their primary motivation is to win cash. Additionally, 80% of users report spending money on these platforms each month, with nearly half doing so on a weekly basis. The number of players is also twice as high in states that do not have explicit bans on sweepstakes casinos.

These platforms mimic the appearance and language of legal operators, creating confusion and making it harder for consumers to distinguish between regulated and illegal gambling, added the association.

“The data is clear,” added York. “Consumers see right through the “sweepstakes” casino facade, and they’re calling it what it is: gambling. We look forward to policymakers continuing to enforce their laws and create clarity through new policy measures to protect their residents.”

Meanwhile,  AGA noted that regulated operators continue to promote their services in jurisdictions where gaming is legal, maintaining compliance with state laws and implementing consumer protection tools. In contrast, sweepstakes casinos advertise aggressively across national digital platforms, regardless of state legality or oversight.

Most users of these platforms are between 31 and 50 years old, with 35% aged 31–40 and 27% aged 41–50. Gender use is nearly split, with 51% male and 49% female. About 42% of users earn less than $50,000 a year, and 38% have a high school diploma or less—more than any other education group.

While players cannot purchase Sweeps Coins directly (one of the legal distinctions these platforms rely on), the premium virtual currency was a driving factor in spending, with two-thirds (67%) of respondents saying they’re interested in Sweeps Coins.

States are increasing enforcement against sweepstakes casinos. In the past year, the number of states without bans or restrictions has dropped from around 47 to under 40. Five states—Montana, New York, Connecticut, Nevada, and New Jersey—have recently banned sweepstakes casinos, joining Washington and Idaho.

Michigan began enforcement in early 2024, sending cease-and-desist orders to operators. Louisiana issued 40 cease-and-desist letters after its governor vetoed a ban; over 20 operators complied.

In West Virginia, the attorney general sent 47 subpoenas, and more than 20 platforms exited the state. Delaware, Maryland, Arizona, and Mississippi have taken similar steps. Meanwhile, sweepstakes casinos are facing lawsuits in Illinois, Alabama, and California. There are currently about 50 active lawsuits across the U.S.