According to new data the American Gaming Association (AGA) collected, consumers recognize sweepstakes casinos as gambling websites.
Key takeaways
- Recent data the AGA compiled shows 90% of sweepstakes casino users consider the activity to be gambling.
- States are currently attempting to close legal loopholes sweeps operators targeted.
- Some sweeps operators are vacating states attempting to crack down on the unlicensed activity.
There is an oft used expression that says, “If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.” And for sweepstakes consumers, if they can win or lose real money, apparently, it’s gambling.
Sweepstakes gambling sites let customers wager with free coins. They can buy additional coins, however, with real money and/or cryptocurrency and exchange them for cash and prizes. These types of online casinos, unlicensed and unregulated, are under fire from lawmakers and regulators.
“These operators present themselves like legal, regulated platforms – but they operate outside the law and regulation,” said AGA vice president of government relations, Tres York. “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.”
Meanwhile, the Social and Promotional Games Association (SPGA) – sweepstakes operators' lobbying arm – considers such legislation to be “reckless.” When Louisiana was considering a bill banning sweeps, the SPGA issued this statement:
“For decades, companies—from fast-food chains to app developers—have utilized sweepstakes as legal promotional tools. SB181’s failure to distinguish between these lawful activities and gambling not only threatens these businesses but also undermines established legal frameworks that support innovation and economic growth.”
While the SPGA continues to defend sweeps as mere marketing tools, users consider them to be gambling.
Consumer data says sweeps = gambling
Sensor Tower data, compiled by the American Gaming Association (AGA), shows half of all online, real-money casino advertisements consumers saw in early 2025 promoted offshore “sweepstakes” casinos. Furthermore, consumers recognize those sites as gambling sites, rather than free play, promotional sites. Key findings include:
- 90% of sweepstakes casino users consider the activity to be gambling.
- 69% of consumers describe sweepstakes casinos as places to wager real money.
- 80% of sweepstakes players spend monthly, and nearly half spend weekly, without the safety nets regulated operators offered.
- The number of monthly sweepstakes casino players is twice as high in states lacking sweepstakes prohibitions.
A few states recently passed legislation prohibiting sweepstakes casinos. And more are in the process of closing legal loopholes sweeps are currently exploiting. Montana was the first state to adopt a law specifically banning sweeps. Connecticut soon followed suit.
While Gov. Jeff Landry recently vetoed Louisiana’s anti-sweeps bill, it was because he felt the state’s current laws were sufficient. The Bayou State’s Attorney General Liz Murrill concurred, stating “Internet gaming or iGaming or the offering of casino-style games online is not a legal form of gaming in Louisiana, as no law authorizing it has been passed nor any election for such has been conducted.”
Additionally, as states take steps to ban unlicensed sweeps, some operators are proactively leaving. For instance, VGW, the parent company of Chumba Casino and Luckyland Slots, vacated a number of states considering sweeps bans. Along with New York and Delaware, VGW exited Montana before the state passed a law banning sweepstakes gambling. The company also left Connecticut, Washington, Michigan, Idaho, and Nevada.
