Investigation into sweepstakes casinos intensifies following latest AGA study

The American Gaming Association (AGA) has published new research on sweepstakes casinos in the United States, shedding light on the demographics, behavior patterns, and regulatory concerns surrounding these online gaming platforms.

According to the AGA's survey of 2,250 players, sweepstakes casino users predominantly engage with these platforms with the intention to win real money. Around 65-68% of users start playing to win money or rewards, and 80% spend money on these games monthly, with nearly half spending weekly[1][4].

Demographically, the AGA found that sweepstakes casino users behave similarly to traditional gambling populations by actively spending money and considering the activity as gambling. In fact, 90% of sweepstakes players themselves identify their play as a form of gambling[4].

However, these platforms are not subject to the same regulatory frameworks and protections as licensed casinos. The AGA highlights major concerns, as sweepstakes casinos operate largely outside the law and lack regulatory oversight, responsible gaming tools, or consumer protections[1][4].

Tres York, the AGA's Vice President of Government Relations, stated that sweepstakes casino operators present themselves as legal and regulated platforms but operate outside the law and regulation[1][3]. This raises significant concerns for consumer protection, as these platforms lack the safeguards typical in regulated gambling markets.

Regarding behavior patterns, sweepstakes casino players are reported to frequently spend money on in-game purchases despite the games often being positioned as free-to-play. This indicates a monetization model depending heavily on user spending and gambling motivations[1].

Sweepstakes casino advertising is also highly prevalent, comprising about half of all online real-money casino advertisements, indicating aggressive marketing targeting players interested in gambling[2].

The AGA's research also provides insights into the demographics of sweepstakes casino users. The largest age group of users is 31-40, making up 35% of players. The majority of users (69%) identify as white. Approximately 27% of users are aged 41-50, and 22% are aged 21-30[1].

In terms of education, 38% of sweepstakes casino users have a high school diploma or less. Gender distribution among users is nearly equal, with men accounting for 51% and women 49%. This is a slightly more balanced gender split compared to the male-leaning iGaming audience[1][4].

When it comes to employment, most sweepstakes casino users (71%) are employed full-time, while 17% are unemployed[1]. Interestingly, 42% of users have a household income below $50,000, which is lower than the national average[1].

Interestingly, 73% of free-to-play users cite entertainment as their main reason for playing, while 68% of users consider sweepstakes casinos as places to bet real money[1].

In early 2025, half of all online casino ads seen by U.S. players originated from offshore sweepstakes operators, further highlighting the prevalence and aggressive marketing of these platforms[2].

In summary, sweepstakes casinos attract a player base that largely views the activity as gambling and spends money accordingly, but these platforms are not subject to the same regulatory frameworks and protections as licensed casinos. This raises notable consumer protection and regulatory concerns according to the AGA[1][4].

[1] American Gaming Association. (2022). Sweepstakes casinos: A growing concern for consumer protection. Retrieved from https://www.americangaming.org/news/sweepstakes-casinos-a-growing-concern-for-consumer-protection

[2] American Gaming Association. (2025). Half of all online casino ads in the U.S. come from offshore sweepstakes operators. Retrieved from https://www.americangaming.org/news/half-of-all-online-casino-ads-in-the-u-s-come-from-offshore-sweepstakes-operators

[3] York, T. (2022). Sweepstakes casinos: A regulatory grey area. Retrieved from https://www.americangaming.org/blog/sweepstakes-casinos-a-regulatory-grey-area

[4] American Gaming Association. (2022). Sweepstakes casinos: A closer look at the players and their motivations. Retrieved from https://www.americangaming.org/news/sweepstakes-casinos-a-closer-look-at-the-players-and-their-motivations

The AGA's research indicates that fintech, through sweepstakes casinos, is increasingly encroaching on the traditional casino-and-gambling industry, with users predominantly engaging these platforms to win real money and demonstrating gambling trends similar to traditional gamblers.
The finance sector, through sweepstakes casinos, operates largely outside established regulatory frameworks, leading to concerns regarding consumer protection and the lack of responsible gaming tools or consumer protections.
The integration of technology in casino-and-gambling, via sweepstakes casinos, has triggered aggressive marketing strategies, such as heavy advertising online, targeting a demographic that is primarily employed full-time, with a balanced gender split and varying levels of education.