A study conducted by the American Gaming Association discovers that 90% of players in sweepstakes casinos are aware that sweepstakes casinos are, in fact, offering gambling. In addition, 69% of these players know that they can bet real money on these sites, and 80% also spend regularly on sweeps casinos without the usual protections offered by regulated casinos.

A new study from the American Gaming Association has confirmed what many in the gaming industry have long suspected: despite their claims of legality, online sweepstakes casinos are overwhelmingly perceived by the majority of consumers as platforms for gambling. As the popularity and advertising presence of these unregulated sites rise across the US, industry advocates and lawmakers are sounding the alarm about their impact on player safety and the integrity of the legal gaming industry.

Unregulated operators dominate online casino advertising

According to data provided by mobile analytics firm Sensor Tower and compiled by the AGA, nearly 50% of all real-money casino ads online seen by consumers in early 2025 came from offshore sweepstakes casinos. These sites, which use legal loopholes to offer casino-style games in exchange for sweepstakes entries rather than direct wagers, are exploiting vague legal frameworks in many states.

"These operators present themselves like legal, regulated platforms - but they operate outside the law and regulation," said Tres York, AGA Vice President of Government Relations. "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."

Consumers know it's gambling - and they're playing anyway

The new research dispels the notion that players view sweepstakes casinos as innocent entertainment. In fact, the study found that a majority of users see them for what they are: gambling sites.

Key findings include:

  • 90% of sweeps casino users consider themselves gambling when they engage with these sites.
  • 69% of users define sweeps casinos as places where they can wager real money.
  • 68% say their main motivation is to win real money, not entertainment or social interaction.
  • 80% of users spend money monthly on these sites, with nearly half spending weekly.

Despite these figures, sweepstakes casinos continue to operate largely outside the bounds of regulated gaming, offering none of the safeguards found in licensed environments. With no required responsible gambling measures, no consumer recourse, and little transparency, advocates warn the risks are growing.

Legal loopholes, state inaction fuel the trend

One of the most troubling elements of the sweepstakes casino boom is how concentrated these ads are in high-population states that lack specific prohibitions. The AGA's data shows the number of monthly sweepstakes players is twice as high in states that don't actively regulate or restrict such platforms.

While licensed online casinos are held to strict standards and only advertise in jurisdictions where they're legally permitted, sweepstakes casinos flood social media and mobile platforms with ads, often mimicking the design, language, and promotions of legitimate brands.

The confusion is intentional, said York. These sites are crafted to look, feel, and sound like legal gambling options, making it extremely difficult for the average player to distinguish between the two, York added.

Calls for enforcement and legislative action

As public awareness grows, the AGA is urging lawmakers and regulators to take stronger action. The association believes the findings should prompt a more aggressive crackdown on unregulated gaming and clearer policy guidelines to protect consumers. "The data is clear," emphasized 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."

The AGA has long advocated for a well-regulated gaming market that prioritizes consumer safety, responsible gambling, and industry transparency. This latest research strengthens the case for federal and state authorities to close the legal gaps that allow sweepstakes casinos to flourish unchecked.