Data suggests US customers view sweepstakes casinos as gambling
Some 80 per cent of players spend real money on sweepstakes sites monthly,
US.- As state gaming regulators and legislators turn scrutiny on the operations of so-called sweeptakes casino platforms, new data suggests that consumers view the unregulated segment as gambling.
Operators often argue that such products don’t count as gambling under US law because of free entry options such as the use of virtual coins or credits that can be obtained without purchase. However, figures published by the American Gaming Association (AGA) suggest that customers view the games differently.
Collected by Sensor Tower, the data shows that 80 per cent of players spend money on sweepstakes sites monthly, and almost half do so weekly, often without the protections that regulated operators provide.
Nearly seven out of ten players see winning real money as their main motivation for using the platforms, and 90 per cent of users consider the activity to be a form of gambling. some 69 per cent described sweepstakes casinos as places to wager real funds.
Meanwhile, in early 2025, offshore sweepstakes casinos accounted for half of all online advertisements promoting real-money gaming. The statistics also show that player engagement is substantially higher in states that do not prohibit sweepstakes, with the number of monthly users doubling in these regions.
Tres York, vice president of government relations at the AGA, warned that operators were misleading consumers. He said: “These platforms mimic the look and feel of regulated gambling sites. But they lack oversight, responsible gaming tools, and consumer protections. It’s a dangerous subterfuge that puts players at real risk.”
He added: “The data is clear. Consumers see right through the sweepstakes casino facade and they’re calling it what it is: gambling. We encourage policymakers to strengthen enforcement and create new policies that offer clarity and protect their residents.”
Several states in the US are taking steps to close the loopholes to explicitly prohibit unregulated gaming that uses virtual currencies. Montana was the first US state to pass legislation with a law that will enter effect on October 1. Connecticut has also passed legislation, and New York’s Senate Bill 5935 was passed in a landslide vote last month, sending the proposal on its way to governor Kathy Hochul. In California, assemblymember Avelino Valencia has proposed Assembly Bill (AB) 831.
