AGA Study Reveals: 90% of Sweepstakes Casino Users Know They’re Gambling

You might think sweepstakes casinos are fun freebies, but a new American Gaming Association (AGA) study reveals something else entirely: almost everyone who plays these platforms knows they’re gambling.

Sliced Las Vegas Casino Collage Concept

More Than a Game

A new AGA study makes one thing painfully obvious: sweepstakes casino users know they’re gambling, and they’re not shy about it. Despite all the “free-to-play” branding and legal loopholes, 90% of players admit it’s gambling, plain and simple. And we’re not talking about people casually spinning a few reels on a lunch break. Nearly 70% say they’re wagering real money, and 68% are in it for one thing only: cold, hard cash.

But here’s where it gets even more interesting. While the platforms love to parade around as “just for fun,” most users are paying, and they’re paying way more often. Eight in ten drop real money every month, and nearly half are shelling out weekly. That’s not some innocent time-killer, that’s a serious spending habit.

And it’s no coincidence where this is happening. In states where sweepstakes casinos operate without restrictions, player counts are nearly double of what you’ll find in areas with actual rules. People are treating these games like real-money casinos because, let’s face it, that’s exactly what they are. The stakes feel real, the spending is real, and the only thing that’s “virtual” is the legal gray zone these platforms are hiding in.

How Platforms Hook Audiences

If it feels like casino ads are everywhere lately, you’re not imagining things. According to data from Sensor Tower, nearly half of all online real-money casino ads viewed in early 2025 were for offshore sweepstakes platforms.

These aren’t your Vegas-style, regulated operators, they’re unlicensed sites that blur the line between gaming and gambling.

And they know exactly where to cast their net: densely populated states with weak licensing laws. That targeting strategy lets them slip into your feed looking all polished, familiar, and deceptively legit, just like legal casinos all.

AGA’s Vice President of Government Relations, Tres York, didn’t mince words:

“These operators present themselves like regulated platforms—but operate outside the law… with no responsible gaming tools and little to no player protection. It’s a dangerous subterfuge that puts players at real risk.”

It’s not just about sneaky advertising, it’s about platforms skipping past consumer safeguards entirely while cashing in on confusion.

States Already Pushing Back

Sweeps platforms aren’t just in regulators’ sights, they’re now being removed. Montana, New York, Connecticut, Nevada, and New Jersey have banned them outright. In other states, like Michigan, Louisiana, West Virginia, Arizona, Mississippi, official letters, subpoenas, and enforcement actions are pushing dozens of operators out.

With nearly 50 court cases pending in places like Illinois and California, the future looks unstable for these grey-area casinos.

Who’s Playing? The User Profile

The AGA’s latest data shines a revealing light on who’s spending real money on sweepstakes casinos, and the profile might surprise you.

Players look a lot like typical iGaming users:

  • Roughly 35% are between 31 and 40 years old, and another 27% fall in the 41–50 range, which are prime spending ages for online entertainment.
  • The gender split is almost dead-even: 51% male, 49% female, showing broad appeal across identities.
  • About 42% earn less than $50K a year, and 38% have a high school diploma or less, making sweepstakes platforms accessible for those outside the premium income bracket.

But the real proof of engagement comes from what’s keeping them hooked: 67% say they play primarily to get Sweeps Coins, the premium currency redeemable for cash prizes, not because it’s free. That’s not a casual click-around. That’s the same mindset driving traditional online gambling.

Why This Matters Right Now

The AGA’s report completely squashes the argument that players are being duped, they clearly know they’re gambling. Still, sweepstakes platforms continue to skate by, dodging the licensing rules, safety nets, and consumer protections that legit operators have to follow.

Now the AGA’s calling for real change: tighter rules, fewer loopholes, and more tools like its “Play Smart” hub, packed with quizzes, guides, and safer play tips. Because this isn’t just about awareness anymore, it’s about leveling the playing field.

What to Watch Next

With the heat turning up on sweepstakes casinos, the big questions are impossible to ignore. Will more states take the hardline approach like New Jersey and Montana and shut the door entirely? Or will they go the regulation route, setting clearer rules instead of outright bans?

As more players recognize what’s really going on, and big-name casino brands push back, the pressure is building to clean things up. That might mean stricter ad rules, tighter legal definitions, and a move toward more transparent, player-friendly platforms.

One thing’s clear: however this shakes out, the next few months could reshape the entire sweepstakes casino game.

Blaise Luis Image

Blaise Luis

News Writer 59 Articles

Blaise is an expert casino content writer who crafts engaging, SEO-optimized articles on online casinos, betting strategies, and industry trends to drive player engagement and conversions. With deep knowledge of iGaming, sweepstakes, and player incentives, he delivers high-value content for top gaming brands, covering everything from slot mechanics to responsible gambling.

More info on Blaise Luis Arrow