New research from the American Gaming Association (AGA) has revealed that consumers knowingly use online sweepstakes casinos for gambling, with the platforms exploiting legal loopholes to deliberately target players in key states.
This action undermines the regulated gaming industry, prompting ongoing scrutiny from gaming regulators, state Attorney Generals, and legislatures.
Sensor Tower data, compiled by the AGA, indicated that in early 2025, 50% of online real-money casino ads promoted unregulated offshore “sweepstakes” casinos, with heavy advertising in populous states.
New AGA research confirms consumers consider sweepstake casinos to be gambling. By exploiting loopholes in the law, these operations undermine the integrity of the legal, regulated gaming marketplace.
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— American Gaming Association (@AmericanGaming) July 31, 2025
The findings show that despite their unregulated status, 68% of users view these platforms as gambling sites, driven by the urge to win real money.
While there is a focus on attracting users who know of their illicit status, several sweepstakes companies intentionally replicate the design and language of legal operators, confusing consumers and duping others.
“These operators present themselves like legal, regulated platforms – but they operate outside the law and regulation, said Tres York, the AGA Vice President of Government Relations.
“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.”
Customers see right through sweepstakes, says AGA VP
Critics would argue this reflects the need for ongoing strict enforcement and public awareness, while the ASA research also detailed that the number of monthly sweepstakes users is around twice as high in those states that do not prohibit the activity.
York continued with a damning conclusion, calling on the authorities to take action.
“The data is clear. 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.”
The onslaught against sweepstakes continues after BetMGM CEO Adam Greenblatt spoke out to discredit the alternative social casinos in a recent interview.
He stated that the sweepstakes should be made illegal, as it’s a negative for the regulated sector, while welcoming the actions taken in states such as New York, California, Connecticut to outlaw the activity.
Image credit: AGA
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