Customers Are Aware Sweepstakes Casinos Are Gambling, According to AGA Research

The business practices of online “sweepstakes” casinos are being closely examined by state legislators, gaming regulators, and attorneys general. According to recent research, the majority of consumers use these platforms to gamble, and sweepstakes operators are specifically targeting players in important states. These activities compromise the integrity of the legitimate, regulated gaming business by taking advantage of regulatory loopholes.

Offshore “sweepstakes” casinos were advertised in half of all online real-money casino ads that consumers saw in early 2025, according to Sensor Tower data gathered by the American Gaming Association (AGA). According to the statistics, these unregulated businesses focus their advertising efforts in states with high population densities.

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“These operators pose as legitimate, regulated platforms, but they are not operating within the law or regulations,” stated Tres York, vice president of government relations at the AGA. “There is no governmental control, no consumer rights, and very few, if any, instruments for responsible gambling. It’s a risky deception that really endangers gamers.

With 68% of users stating that winning real money is their main motivation for playing, “sweepstakes” casinos are commonly viewed by players as gambling platforms even though they are not part of the regulated gaming industry. There is a reason for this confusion: a lot of these websites imitate the appearance, tone, and vocabulary of legitimate businesses, making it difficult for customers to distinguish between them and highlighting the need for more transparent enforcement and public awareness campaigns.

Key findings include:

• 90% of those who use sweepstakes casinos think of it as gambling.
• 69% of respondents said they can bet real money in sweepstakes casinos.
• Almost half of sweepstakes participants spend weekly, and 80% spend monthly, without the protections provided by registered operators.
• States without sweepstakes bans have twice as many monthly sweepstakes casino players.
  
  Across the nation, “sweepstakes” casinos actively advertise on well-known digital channels. In contrast, legitimate, regulated gambling businesses do responsible advertising in jurisdictions with consumer protection laws and regulatory monitoring.

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