A recent analysis by the American Gaming Association (AGA) reveals a concerning trend in the U.S. online gambling landscape: nearly 50% of online casino advertisements are from offshore or sweepstakes-based operators, many of which lack proper licensing. These findings highlight a growing divide in the digital casino market, where illegal or loosely regulated entities match, and in some cases exceed, the visibility of legal online casinos.
Between January and May 2025, offshore and sweepstakes casinos accounted for 49.09% of all ad impressions, competing closely with legal platforms such as FanDuel, DraftKings, and BetMGM, which collectively held 50.91%. High-profile sweepstakes brands like Chumba Casino, McLuck, and Pulsz.com were among the most visible, despite operating outside traditional regulatory structures.
Offshore Brands Focus on YouTube, Target Lenient States
The AGA’s data, compiled using Sensor Tower’s ad tracking, illustrates the aggressive digital strategies employed by these unlicensed operators. “Offshore and sweepstakes sites heavily concentrate their ads on specific channels like YouTube or Reddit, while legal operators are more balanced across platforms,” the report states.
YouTube alone accounts for nearly 65% of sweepstakes casino ad spend. The platform delivered more than 1.3 billion impressions for these brands in just five months, far outpacing Reddit, Facebook, and TikTok. Notably, McLuck and Pulsz devoted over 90% of their advertising budgets to YouTube, reflecting a deliberate attempt to flood high-visibility, lightly regulated platforms.
These ads are also strategically placed in states lacking enforcement or prohibition of sweepstakes gambling. According to the AGA, “offshore and sweepstakes casinos target consumers in states without sweeps enforcement or prohibition actions,” enabling them to operate with minimal oversight.
Legal Casinos Prioritize Diverse Channels and Regulated Markets
In contrast, legal online casinos maintain a more balanced and compliant approach. Their ad spend is distributed across a variety of platforms—OTT services (29%), Facebook (17%), and YouTube (14%) being the top three. Facebook leads in impressions for these operators, exceeding 1.4 billion views, followed by Instagram and X (formerly Twitter).
Rather than focusing on one or two platforms, companies like FanDuel, BetMGM, and DraftKings diversify their marketing across seven or more channels. They also adhere to geographic regulations, restricting their ad campaigns to states with legalized online gambling frameworks. The AGA report emphasizes, “legal iGaming operators overwhelmingly advertise in legal iGaming states”.
Call for Clarity as Sweepstakes Blur Gambling Boundaries
The prevalence of unregulated sweepstakes operators raises red flags among industry stakeholders. These businesses often blur the line between promotional sweepstakes and real-money gambling.“Sweepstakes casinos exploit legal loopholes to operate outside regulatory oversight without consumer protections, responsible gaming standards, or accountability,” the AGA warned.
Consumer spending patterns echo these concerns. Approximately 80% of sweepstakes players reported making monthly financial contributions to these platforms—significantly higher than the 50% of social casino users who spend money on free-to-play apps. Despite not being regulated, these sites often present themselves similarly to legitimate operators, contributing to consumer confusion.
Source:
“AGA: Online Casino Advertising Trends”, americangaming.org, July 2025
The post Offshore Casino Ads Rival Legal Rivals in U.S. Digital Space first appeared on RealMoneyAction.com.