As state legislatures and gaming regulators continue to criticize online sweepstakes casinos for offering a dual-currency system to players, new research from the American Gaming Association (AGA) shows that consumers overwhelmingly use these platforms to gamble.
Half Of All Online, Real-Money Casino Ads Promoted Sweepstakes Casinos
The AGA said in a press release that “by exploiting loopholes in the law, these operations undermine the integrity of the legal, regulated gaming marketplace.”
According to Sensor Tower data compiled by the AGA, half of all online, real-money casino advertisements seen by consumers in early 2025 promoted sweepstakes casinos. The data shows that sweeps operators concentrate their advertising in populous states.
“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.”
Sweepstakes Casinos Have Strict Age Verification, Responsible Gaming Tools
Contrary to popular belief, York’s information just isn’t true, especially concerning responsible gaming tools. Sweepstakes operators have taken many steps to boost their legitimacy.
During last month’s California Senate Governmental Organization Committee hearing on Assembly Bill 831, the Social Gaming Leadership Alliance (SGLA) cited four consumer safeguards that its partners utilize, including:
- Strict age verification using robust identity and geolocation technology and processes to prevent access to games and platforms by minors.
- Comprehensive security protocols including anti-money laundering (AML) procedures and “Know Your Customer” (KYC) frameworks.
- Responsible gameplay tools including spending limits, self-exclusion options, and one-click access to responsible gaming resources.
- Financial protections through partnerships with major payment networks that require the same security standards as major retailers.
AGA Unveils Other Research Findings
According to the AGA’s data, sweepstakes casinos are widely perceived by players as gambling platforms, with 68% of users saying their primary reason for playing is to win real money.
“This confusion is no accident – many of these sites mimic the look, feel, and language of legal operators, blurring the line for consumers and reinforcing the need for clearer enforcement and public education,” the Gaming Association added.
Key findings from AGA’s research study include:
- 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 monthly, and nearly half spend weekly, without the safety nets offered by regulated operators.
- The number of monthly sweepstakes casino players is twice as high in states lacking sweepstakes prohibitions.
In addition, the AGA believes sweepstakes casino operators market their sites on popular digital platforms throughout the nation. It went on to insinuate that only regulated gaming operators should be allowed to “advertise responsibly in legal states” where consumer protections and regulatory oversight are in place.
“The data is clear,” added York. “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.”
Sweepstakes Casinos Are Legal Gaming Platforms
Sweepstakes casinos are online gaming platforms that allow players to enjoy casino-style games for free while having the chance to win real cash prizes via a dual-currency system.
The platforms offer a unique system of virtual currencies, primarily Gold Coins (GC) and Sweeps Coins (SC). Players can acquire Gold Coins for free or through purchases.
Sweeps Coins are earned through gameplay and can be redeemed for real cash prizes.
Popular sweepstakes casinos include Stake.us, McLuck, and Hello Millions.