AGA warns of growing risks from unregulated sweepstakes casinos

The American Gaming Association (AGA) has released new research on sweepstakes casinos, as part of its campaign against the form of gaming. 

One key finding is that although, operating outside the regulated market, sweepstakes casinos mimic the branding, language and functionality of licensed online gambling operators, according to the AGA.

The AGA argues that this approach creates consumer confusion, resulting in players being unable to differentiate these platforms from authorized online casinos.

As a result, many users engage with sweepstakes casinos as if they were legal gambling sites, without the safeguards, oversight  or consumer protections mandated by regulation, again as argued by the research.

Another highlight from the research is that most consumers perceive these platforms as forms of gambling, while operators are actively targeting users in critical states.

Besides, data from Sensor Tower, compiled by the AGA, shows that sweepstakes casino ads accounted for half of all online real-money casino advertisements viewed in the US during early 2025. These ads are heavily concentrated in populous states and in those with unclear legislation or ‘weak’ enforcement against sweepstakes gambling.

In contrast, licensed operators target their advertising primarily to consumers in jurisdictions where online casino gaming is permitted, adhering to strict content guidelines and responsible gaming messaging.

Good to know: According to AGA, 68% of sweeps players’ main motivation is winning money 

In light of these developments, the AGA and industry stakeholders emphasize the urgent need for clear legal definitions to distinguish sweepstakes casinos from regulated gaming, stronger enforcement to hold unregulated operators accountable and ongoing consumer education efforts. 

Most recently, California’s Public Safety Committee unanimously approved Assembly Bill 831, aimed at banning sweepstakes-style gambling operations across the state. The bill seeks to close legal loopholes and reinforce protections for consumers by distinguishing these platforms from regulated gaming.

Naturally, a number of sweepstakes companies argue that they provide a legitimate form of gaming. The AGA and its members, however, are not in agreement.

Carlos Mendez

Writer

Odds tell a story long before the result does. When bettors learn to read that story properly, betting becomes a matter of discipline and value rather than emotion or guesswork.

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