Sweepstakes Casinos in the Spotlight as AGA Pushes for Regulation

New AGA data shows 90% of Sweepstakes casino players see it as gambling, as more US states move to ban the sites.

The American Gaming Association (AGA) has released fresh data on Sweepstakes casinos in the US, and the headline finding won’t shock anyone who’s been paying attention.

Nine out of ten Sweepstakes players think they’re gambling. Almost 70% describe these sites as places to wager real money.

For most, the motivation is clear, with 68% saying they play to win cash, a figure much closer to regulated iGaming punters than to free-to-play customers, who mostly play for fun.

Mimicking the real thing?

Where the data gets interesting is how closely Sweepstakes behaviour mirrors traditional online casino play. The AGA found that 82% of iGaming players are motivated by money, which is only slightly higher than the Sweepstakes figure. That’s despite Sweepstakes operators insisting they’re not offering gambling at all.

Part of the AGA’s concern is that Sweepstakes sites mimic the branding, design, and even language of regulated gambling operators.

That creates confusion, especially in states where legal online casinos don’t exist. And also mixes the line between Sweepstakes and traditional casinos.

The research also shows that the number of Sweepstakes players doubles in states without specific regulation, suggesting that in the absence of a legal alternative (and without clear enforcement), players opt for the closest look-alike.

This blending of lines also affects advertising. Data from Sensor Tower, compiled by the AGA, shows that Sweepstakes casino ads accounted for half of all online real-money casino advertisements viewed in the US in early 2025.

Legal operators focus their advertising on states where online gambling is permitted and follow strict content and responsible gaming rules.

Sweepstakes operators aren’t bound by those rules, which means they can flood YouTube, where they spend nearly 60% of their ad budgets, and appear in front of younger audiences with almost no oversight.

Who’s playing?

AGA included a demographic breakdown and found that Sweepstakes players are almost evenly split between men and women, with 35% aged 31-40 and 27% aged 41-50.

The majority (69%) are white, and 42% earn less than $50,000 a year (that is below the national average). Just over 70% are in full-time employment, while 17% are unemployed, and more than a third have only a high school education.

It’s a player base not far off the profile of regulated iGaming customers, though with a slightly higher male focus.

Legislators ban sweepstakes casinos

The AGA’s report comes as more states look to control the sector. Montana has passed SB 555, which makes online gambling a felony and includes digital tokens in its definition. This is a direct hit on the gold coin/sweep cash model used by Sweepstakes casinos.

Operators face up to 10 years in prison, $50,000 in fines, and forfeiture of profits, though the law doesn’t target players. Montana is the first state to explicitly outlaw Sweepstakes casinos, and the move could set a precedent for others.

New Jersey has already banned Sweepstakes, with the Division of Consumer Affairs and Division of Gaming Enforcement enforcing penalties. In Mississippi, a bill to ban Sweepstakes casinos “died” earlier this year, but regulators still sent cease-and-desist letters to 10 major operators.

Meanwhile, California is moving forward with Assembly Bill 831, which aims to close legal loopholes and ban that style of gambling.

The bigger picture

The AGA’s position is clear: these social casinos are gambling operations without the oversight, player protections, or responsible gambling tools of the regulated market.

As AGA VP of Government Relations Tres York put it: “It’s a dangerous subterfuge that puts players at real risk.” While that’s not an unbiased take with the AGA representing the licensed gambling industry, which has an interest in pushing Sweepstakes competitors out, it’s also not inaccurate.

What the study really confirms is something most already knew: if you let people play casino games (or ones in similar style) for the chance to win cash, they see it as gambling.

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By Deni

Verified Casino Expert

Expertise: Casino Content Writing, Journalism & (PR), Gambling Regulations, Dutch & German Gambling Markets

Hi, I'm Deni! I'm a research obsessive with a passion for gambling regulations, market trends, and casino news. I dig deep into every topic I cover - so every article, review, or guide I write is built on solid research and real detail.

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Last updated: August 13, 2025

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Sweepstakes casinos in the spotlight as AGA pushes for regulation

Mimicking the real thing?

Who’s playing?

Legislators ban sweepstakes casinos