AGA Report Reveals 90% Players See Sweepstakes as Gambling

A new American Gaming Association (AGA) study finds that the vast majority of sweepstakes casino players view the activity as gambling. In addition, the spending habits and demographics of said players closely mirror those of real-money iGaming users.

AGA Study Finds Majority of Players See No Difference Between Sweepstakes and Gambling

Based on Sensor Tower data compiled for the AGA between June 11–24, a survey of 2,250 participants, which includes real-money iCasino players, free-to-play mobile casino users, and sweepstakes casino players, found that the majority of respondents view sweepstakes as a form of gambling. The margin of error for the three core groups was +/-3.6%.

Breaking the data down further, 59% say it is “definitely gambling,” while 31% say it is “probably gambling.” Additionally, 68% use these sites primarily to win money, and nearly 70% describe them as places where people wager real money. Spending is also consistent: 80% of players spend money monthly, and nearly half do so weekly.

These behaviors closely resemble those of iGaming players, 82% of whom report money as their main motivation. In contrast, 73% of free-to-play users cite fun, rather than financial gain, as their primary reason for playing. It is also worth noting that, in early 2025, half of all online casino advertisements viewed by US players originated from offshore sweepstakes sites.

The AGA also shared demographic insights into the typical sweepstakes casino player. The largest age group is 31–40 years old, making up 35% of players, followed by 27% aged 41–50 and 22% aged 21–30. The gender split is nearly equal, with 51% of players identifying as male and 49% as female.

In terms of race and socioeconomic background, 69% of sweepstakes players are white, and 42% report a household income under $50,000, which is below the national average. Most (71%) are employed full-time, while 17% are unemployed. Educational attainment is relatively low, with 38% having completed no more than a high school diploma. These demographics are broadly similar to those of iGaming players, though the iGaming audience skews slightly more male.

Here’s What Some Officials Had to Say

The AGA’s vice president of government relations, Tres York, stated that it was unsurprising that so many players view sweepstakes games as a form of gambling. According to York, when a player uses a site to play games like blackjack or slots in “sweeps mode” and has the ability to cash out, “that is basically the very definition of gambling.”

York noted that most legal operators maintain a fairly balanced approach in terms of the platforms they advertise on. In contrast, he explained that sweepstakes platforms concentrate the majority of their ad spending on YouTube, with Reddit coming in as a distant second. This strategy, he explained, is essentially the opposite of how licensed operators typically allocate their advertising resources.

Several jurisdictions have started taking action against illegal gambling sites. Some Operators are also ending sweepstakes operations. For example, VGW plans to end its sweepstakes model in Mississippi and New Jersey. Meanwhile, states such as Louisiana, Pennsylvania, Connecticut, Delaware, and Michigan are actively working to shut down black market and offshore sweepstakes operations.