AGA Study Shows Most Consumers View Sweepstakes Casinos as Gambling

Research published by the AGA indicates that the public views sweepstakes casinos as just another form of gambling.

Ziv Chen

Last Updated: August 1, 2025 2:08 PM EDT • 2 minute read

State lawmakers, gaming regulators, and Attorneys General are ramping up pressure on sweepstakes casinos amid growing evidence that these platforms are primarily used for gambling and heavily promoted in key US markets. Research published by the American Gaming Association (AGA) indicates that the public views sweepstakes casinos as just another form of gambling.

Using data from Sensor Tower, the AGA found that 90% of sweepstakes casino users consider the activity gambling, and 69% say they use the platforms as real-money online casinos. These platforms usually seem identical to registered sites, with matching branding and interfaces.

However, they do not comply with state gaming laws and lack oversight, consumer protections, or responsible gambling safeguards. AGA Vice President of Government Relations Tres York described the model as "a dangerous subterfuge that puts players at real risk."

Most players, 80%, spend monthly, and nearly half spend weekly, often without the protection of regulated operators. Consumer confusion is widespread, with 68% saying their primary motivation is to win money, reinforcing the perception that these are gambling sites, not promotional platforms.

The AGA study also found that 50% of all real-money online casino ads seen by US consumers in early 2025 were for offshore sweepstakes casinos, despite their unregulated status.

States without explicit prohibitions against sweepstakes casinos have double the number of monthly players compared to those with restrictions. Offshore operators continue advertising aggressively, especially in high-population states, while legal operators remain bound to regulated jurisdictions and consumer protection standards.

AGA expands responsible gaming outreach

As policymakers target deceptive sweepstakes platforms, the AGA has launched the Play Smart Consumer Hub to equip players with tools for safe and informed gambling. Introduced in June, the new digital platform expands the AGA's Play Smart from the Start initiative, which promotes responsible gaming practices across all forms of legal gambling.

The Play Smart Consumer Hub offers educational and behavioral resources to support informed player decision-making. AGA President and CEO Bill Miller stated that the initiative supports the organization’s objective of incorporating responsible gaming into the player experience.

The site instills three core principles: having the proper mindset, being knowledgeable of the game being played, and playing with intention. These are supplemented with practical tools like a Pre-Play Checklist, educational segments explaining odds and betting mechanics, and a Responsible Gaming IQ Quiz.

It also links to national and statewide support services like the National Problem Gambling Helpline.

Additionally, the platform is home to an Industry Toolkit that provides licensed operators with campaign language, creative materials, and advice on executing responsible gambling initiatives. This effort is part of an industry-wide effort to differentiate legal sites from non-licensed operators and give players the tools and information they need to gamble responsibly.

Written by:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.