Sweepstakes casinos under scrutiny in latest AGA research

The American Gaming Association (AGA) has published new research on sweepstakes casinos in the United States.

The findings reveal that the vast majority of users view sweepstakes platforms as a form of gambling, with 90% acknowledging this – 59% categorizing it as “definitely gambling” and 31% saying it’s “probably gambling.” Additionally, 68% of users said their main motivation for using these platforms is to win money. Nearly 70% consider sweepstakes casinos as places to bet real money, with 80% making monthly deposits and almost half engaging on a weekly basis.

These behaviors closely mirror those of iGaming users, 82% of whom also play primarily for monetary rewards. In contrast, 73% of free-to-play users cite entertainment as their main reason for playing.

The data also shows that sweepstakes casino usage doubles in states lacking specific regulations, and in early 2025, half of all online casino ads seen by U.S. players originated from offshore sweepstakes operators.

AGA VP of Government Relations Tres York said:

These operators present themselves like legal, regulated platforms – but they operate outside the law and regulation. 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.

The AGA also shared insights into the demographics of typical sweepstakes casino users. The largest age group is 31–40, making up 35% of players, followed by 27% aged 41-50 and 22% aged 21-30. Gender distribution is nearly equal, with men accounting for 51% and women 49%.

The majority of players (69%) identify as white, and 42% have a household income below $50,000—lower than the national average. Most (71%) are employed full-time, while 17% are unemployed. In terms of education, 38% have a high school diploma or less. While these demographics are similar to those of iGaming users, sweepstakes players show a slightly more balanced gender split compared to the male-leaning iGaming audience.