Most Consumers See Sweepstakes Casinos as Gambling, AGA Finds in New Report

As sweepstakes casinos face mounting legislative and regulatory pressure across the US, a new study by the American Gaming Association (AGA) reveals that most consumers overwhelmingly view them as gambling, despite the operators’ attempts to brand them otherwise.

The study, conducted between June 11 and 14, includes 2,250 real-money online casino, free-to-play social, and sweepstakes casino players. Key highlights include:

• 90% of sweepstakes casino players consider playing on these platforms to be gambling.
• 68% say their primary goal of playing on the platforms is to win money.
• 69% describe sweepstakes casinos as platforms to wager real money.

Out of the 90% who consider sweepstakes casino gambling, 59% say they are “definitely gambling,” while 31% responded that they’re probably gambling.

The AGA is a trade group representing the US gambling industry. Members include commercial and tribal land-based casinos, sports betting and iGaming companies, suppliers, and affiliated industry stakeholders.

As it represents regulated operators, the AGA has been a vocal opponent of sweepstakes casinos, which are unregulated across most of the US. Only a handful of states explicitly ban the platforms, the latest being New Jersey.

Other Findings and Demographics

The AGA report shows that 80% of sweepstakes casino players spend money at least once a month. About half of them spend money weekly.

In states without restrictions or prohibitions on sweepstakes platforms, usage is twice as high, and advertising played a significant role. AGA claims that approximately 50% of online casino ads seen by US consumers in 2025 are for sweepstakes casinos.

Demographic insights include:

• Approximately one-third (35%) of sweepstakes players are aged 31-40 years old. The second-highest group is those aged 41-50, comprising 27%.
• Gender usage is nearly even, with 51% of users being male and 49% female.
• Approximately 42% of users report an income of under $50,000, which is below the national average.
• More than a third (38%) have a high school diploma or lower. The group represented the highest share among sweepstakes players.

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. Two-thirds (67%) say they’re interested in Sweeps Coins.

Nearly all respondents (95%) say that the inclusion of Sweeps Coins in Gold Coin packages is important, with 42% saying it’s “extremely important.”

Sweepstakes vs. iGaming Players: Nearly Identical

The AGA report found that sweepstakes casino players closely resemble regulated iGaming users in both behavior and demographics, blurring the practical distinction between the two user groups.

The survey reveals that 82% of iGaming players consider winning money as the top motivator to play. Among sweepstakes users, that number is 68%.

The results are nearly identical (67% for iGaming and 65% for sweepstakes users) when it comes to real money rewards being the reason for starting to play on the respective platform.

In terms of demographics, the consumers of the two segments are nearly identical.

One third (33%) of iGaming players are aged 31-40 years old (compared to 35% at sweepstakes casinos). About 26% of iGaming players are aged 41-50 (vs 27%).

Approximately 43% of real-money online casino players (compared to 42%) report an income below $50,000. Those with a high school diploma or less at real money platforms were 39% (compared to 38% for sweepstakes casinos).

A slightly higher percentage of whites play at real money sites (73% vs. 69%), but a higher percentage of Hispanics play at sweepstakes casinos (11% vs. 8%)

States Ramp Up Enforcement

The report arrives amid a nationwide effort to regulate sweepstakes casinos through legislation, enforcement, and litigation. While the number of states that don’t restrict or ban the platforms was around 47 a year ago, it has now dropped below 40.

With New Jersey (which awaits the Governor’s signature), the number of states that have recently prohibited sweepstakes casinos is five: Montana, New York, Connecticut, Nevada, and New Jersey. They join Washington and Idaho, which have long banned sweepstakes.

In early 2024, Michigan took action against sweepstakes platforms through regulatory measures, including cease-and-desist orders. This approach has also been effective recently, as several other states have achieved similar success.

After Louisiana‘s governor vetoed a bill banning sweepstakes casinos, the state’s Gaming Enforcement Division announced that it had sent 40 cease-and-desist orders, with over 20 complying shortly after.

A similar scenario has unfolded in West Virginia, where Attorney General John McCuskey recently shared that he has sent 47 subpoenas to sweepstakes casinos. Like Louisiana, more than 20 have already exited the Mountain State. Other states that have followed a similar approach include Delaware, Maryland, Arizona, and Mississippi.

Meanwhile, in states like Illinois, Alabama, and California, sweepstakes casinos are facing numerous lawsuits. Nationwide, there are around 50 active lawsuits against the platforms.