AGA Study Finds Vast Majority of Players See Sweepstakes Casinos as Gambling Sites

^{The American Gaming Association's study shows that most players treat sweepstakes casino apps like real-money gambling — despite being unregulated. (Photo: Tero Vesalainen / Alamy)}

A study commissioned by the American Gaming Association (AGA) found that 90 percent of sweepstakes casino users considered playing at the sites to be gambling, despite the dual currency model implemented by sweepstakes operators.

The study, conducted by Interpret on behalf of the AGA, surveyed 2,250 real money online casino, free-to-play, and sweepstakes casino players between June 11-24, 2025.

AGA: Consumers ‘See Right Through’ Sweepstakes Model

Other findings from the survey included that 68 percent of sweepstakes casinos say that their primary reason for playing on the sites is to win real money, while 69 percent say they see sweepstakes casinos as places to wager real money.

“Despite operating outside the regulated marketplace, sweepstakes casinos present themselves in ways that mirror legal gaming operators,” the AGA wrote in a summary of the study’s results. 

“The result: most players treat sweepstakes casinos exactly as they would legal gambling platforms -- without the safeguards or oversight required in regulated markets.” 

Additionally, the AGA cited Sensor Tower data that said half of all online real-money casino advertisements in early 2025 came from sweepstakes casino sites. According to the AGA, those ads were primarily in states that lacked clear legal guidance and enforcement standards against sweepstakes sites.

The AGA called for stronger enforcement against unregulated operators and for the passage of clear legal definitions that distinguish sweepstakes casinos from regulated iGaming sites.

“Consumers see right through the ‘sweepstakes’ casino façade and they’re calling it what it is: gambling,” AGA Vice President for Government Relations Tres York said in a statement. “These platforms operate outside the law and put players at serious risk.”

More States Putting Sweepstakes Casinos Under Scrutiny 

While the Social and Promotional Games Association (SPGA) – a trade group representing the sweepstakes casino industry – has not issued a response to the AGA study, it has previously reacted strongly to assertions that sweepstakes sites should be categorized alongside offshore and unregulated online casinos.

“Sweepstakes promotions are not gambling under federal law and are legally permitted in the overwhelming majority of US states,” the SPGA wrote in a June 7 statement reacting to comments by New York Attorney General Letitia James ahead of a ban on sweepstakes casinos in that state. “Instead of working collaboratively to establish clear, modern rules for platforms that offer free-to-play games and do not require a purchase to win, the state has opted for overreach.”

Despite such arguments, states have increasingly moved to regulate or outright ban sweepstakes casinos. States like Montana, Connecticut, and New Jersey have recently joined the list of jurisdictions where the dual currency model is now considered unregulated gambling.

However, there have been exceptions to this trend. While Louisiana legislators overwhelmingly voted for a ban on sweepstakes casinos, Governor Jeff Landry vetoed the bill on June 12, saying that the Louisiana Gaming Control Board already had the authority to combat illegal gambling, including sweepstakes casinos.

 “As such, this bill is a solution in search of a problem that is already being solved by our current system,” Gov. Landry wrote in a letter explaining his veto to the Louisiana Senate.