AGA: 90% of ‘Sweepstakes’ Players Know It’s Gambling, Half of All Online Casino Ads Are for Unregulated Sites

A “Dangerous Subterfuge”

The AGA’s report argues that sweepstakes casinos are exploiting legal loopholes to operate outside the regulated gaming market. This creates a “dangerous subterfuge that puts players at real risk,” according to Tres York, the AGA’s Vice President of Government Relations.

The research shows that this confusion is intentional. These sites often mimic the look and feel of legal operators, blurring the lines for consumers.

However, they lack the essential consumer protections found in regulated markets, such as responsible gaming tools and regulatory oversight. The data confirms that players are not just playing for fun; 68% of users said their primary reason for playing is to win real money.

Aggressive and Targeted Marketing

A key finding of the report is the sheer scale of the sweepstakes advertising machine. According to data from Sensor Tower, half of all online, real-money casino ads seen by consumers in early 2025 were promoting these offshore sweepstakes sites.

This advertising is not random. The data shows these unregulated operators concentrate their marketing efforts in populous states, strategically targeting large consumer bases.

This stands in stark contrast to legal, regulated operators, who are required to advertise responsibly and only in states where they are licensed to operate.

The Data Speaks for Itself

The AGA’s research provides a clear picture of how consumers view and interact with these platforms. The findings underscore the disconnect between the “sweepstakes” legal model and the reality of the user experience.

• 90% of sweepstakes casino users consider the activity to be gambling.
• 69% describe sweepstakes casinos as places to wager real money.
• 80% of sweepstakes players spend money monthly, with nearly half spending weekly, all without the safety nets of a regulated market.
• The number of monthly sweepstakes players is twice as high in states that have not explicitly banned the model.

The AGA is using this new research to call on lawmakers and regulators to take action. As states continue to scrutinize the sweepstakes model, this data provides powerful evidence that these platforms are functioning as unregulated gambling sites in the eyes of their own customers.

“The data is clear,” York added. “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.”