Despite operating under the guise of promotional contests, sweepstakes casinos are widely seen by their users for what they truly are: gambling platforms.
In a recent survey from the American Gaming Association (AGA), a significant portion of sweepstakes casino users acknowledged that they aren’t just there for fun. Ninety percent of respondents described their experience as gambling, while 68% said the pursuit of real money was their main reason for playing. These findings confirm what many regulators have suspected: users know exactly what these platforms are offering, even if the legal framework hasn’t caught up.
Loopholes, Legal Gray Areas, and Player Confusion
While traditional iGaming is strictly regulated and confined to certain states, sweepstakes casinos operate in murkier territory – largely outside formal oversight. And yet, their digital advertising presence is formidable. Data from Sensor Tower, as compiled by the AGA, shows that about half of all real-money online casino ads seen by U.S. consumers in early 2025 were for offshore sweepstakes sites.
“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.”
With user interfaces and promotional tactics that mirror licensed online casinos, many sweepstakes sites blur the line between entertainment and gambling. Their reach is particularly strong in populous states where legal restrictions are minimal or absent. In fact, states without explicit bans see double the number of monthly sweepstakes casino players compared to states with clearer regulation.
A Real-Money Focus Behind “Free” Play
Although these platforms are often marketed as free-to-play games, most users engage in real-money transactions. The AGA’s survey, conducted in June 2025 among 2,250 participants—750 sweepstakes users, 750 iGaming players, and 750 free-to-play users—found that 80% of sweepstakes players spend money monthly, and nearly half do so on a weekly basis.
The in-game economy reflects these spending habits. Among users who pay, 67% said they’re primarily purchasing ‘sweeps coins’, which can typically be exchanged for cash or prizes. Only 33% reported interest in ‘gold coins’, the currency often labeled as non-redeemable or for entertainment use only.
A Disconnect Between Perception and Oversight
While regulated iGaming users and sweepstakes players reported similar motivations—with both groups saying their goal was to win real money—the infrastructure surrounding each experience is vastly different. Legal operators are required to uphold responsible gaming standards, offer self-exclusion tools, and provide customer support governed by local laws.
Sweepstakes platforms, by contrast, face no such accountability. They’re not bound by state regulatory bodies or required to maintain the same standards of transparency and fairness.
“The data is clear,” said 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.”
As pressure mounts for states to address these legal loopholes, the AGA’s research suggests that public perception is already there. For many players, the thrill lies in the chance to win—not in the illusion of free play.
Source:
“AGA Research Reveals Consumers Know Sweepstakes Casinos Are Gambling”, americangaming.org, Jul 31, 2025
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