According to new research from the American Gaming Association (AGA), the vast majority of sweepstakes casino users consider their activity to be gambling — despite operators framing it as promotional play.
Key Findings from the AGA Report
The AGA compiled recent data that reveals:
- 90% of sweepstakes casino users believe they are gambling.
- 69% of consumers say these sites allow real-money wagering.
- 80% of players spend monthly, with nearly half spending weekly — all without the consumer protections that licensed casinos provide.
- States with no sweepstakes bans report double the number of monthly users.
These findings align with common consumer sentiment: if people can win or lose real money, then it’s gambling — regardless of the legal loopholes operators exploit.
How Sweepstakes Casinos Work
Sweepstakes casinos let users play with free virtual coins. However, players can also buy more coins using real money or crypto and potentially redeem them for cash prizes. This monetized element — despite the “free-to-play” façade — is what makes these platforms controversial.
“They look and act like real, legal casinos but are not subject to the same rules,” said Tres York, AGA VP of Government Relations. “There’s no consumer protection, no oversight — it’s a dangerous gray area.”
Legal Pushback Is Gaining Momentum
In response to the growing concern, multiple U.S. states are beginning to crack down:
- Montana became the first state to pass a law directly banning sweepstakes casinos.
- Connecticut followed soon after.
- Louisiana’s Governor Jeff Landry vetoed a similar bill, stating that the state’s current laws already ban such platforms.
Attorney General Liz Murrill echoed that position, saying Louisiana law doesn’t authorize any form of iGaming.
Meanwhile, operators are pulling out of states where legislation is tightening. VGW, the parent company of Chumba Casino and Luckyland Slots, has exited New York, Delaware, Montana, Connecticut, Washington, Michigan, Idaho, and Nevada in anticipation of stricter laws.
Industry Pushback from SPGA
The Social and Promotional Games Association (SPGA), a lobbying group for sweepstakes operators, continues to argue these platforms are lawful promotions — not gambling. In a statement regarding Louisiana’s SB181, the group said:
“For decades, companies—from fast-food chains to app developers—have used sweepstakes as legal promotional tools. This bill fails to differentiate those from gambling, which could hurt innovation and growth.”
Still, data shows that users see through the narrative, and regulators are beginning to act.
As the AGA’s findings reveal, consumers overwhelmingly recognize sweepstakes casinos as real gambling platforms, not promotional games. The pressure is mounting on lawmakers to close regulatory gaps, and with operators retreating from several states, the legal tide appears to be turning.
