AGA Report Reveals 90% of Players Perceive Sweepstakes as Gambling

Most Players Consider Sweepstakes Games as a Form of Gambling

A recent study by the American Gaming Association (AGA) highlights that a significant majority of sweepstakes casino participants regard these games as a type of gambling. Furthermore, the spending patterns and demographic profiles of these players closely resemble those involved in real-money iGaming.

Study Details: Player Opinions and Spending Habits

The AGA’s research, based on data from Sensor Tower collected between June 11 and 24, surveyed 2,250 individuals including real-money online casino players, free-to-play mobile casino users, and sweepstakes casino participants. The results showed that most respondents associate sweepstakes with gambling, with a margin of error of plus or minus 3.6% across the groups.

Specifically, 59% of those surveyed believe sweepstakes are “definitely gambling,” while an additional 31% view them as “probably gambling.” A majority, 68%, primarily engage with these sites to win money, and nearly 70% characterize the platforms as places for wagering real money. Spending habits reflect this, as 80% of players contribute financially on a monthly basis, and nearly half do so weekly.

These behaviors are similar to those seen in traditional iGaming, where 82% of players play mainly for monetary rewards. In comparison, 73% of free-to-play game users state their motivation is entertainment rather than financial gain. Notably, by early 2025, half of all online casino ads seen by players in the United States came from offshore sweepstakes platforms.

Demographic Profile of Sweepstakes Players

The report also offers insights into who these sweepstakes players are. The most common age range is between 31 and 40 years old, accounting for 35% of players. This is followed by 27% aged 41 to 50, and 22% between 21 and 30 years old. Gender distribution is nearly even, with 51% identifying as male and 49% as female.

In terms of ethnicity and socioeconomic status, 69% of players are white, and 42% report a household income below $50,000, under the national average. Employment status shows that 71% are employed full-time, while 17% are without work. Education levels tend to be modest, with 38% having only completed a high school diploma. These demographics are largely comparable to those of iGaming players, who tend to be slightly more male.

Perspectives from Industry Representatives

Tres York, the AGA’s Vice President of Government Relations, remarked that it is unsurprising many players equate sweepstakes games with gambling. He explained that when players participate in games like blackjack or slot machines in “sweeps mode” with the chance to cash out winnings, it essentially meets the definition of gambling.

York also pointed out that legitimate operators tend to diversify their advertising platforms, whereas sweepstakes sites focus most of their marketing spend on YouTube, with Reddit as a distant second. This contrasts sharply with the advertising strategies of licensed operators.

Regulatory Actions and Industry Shifts

A number of jurisdictions have begun cracking down on illegal gambling websites. Some operators are discontinuing their sweepstakes services; for instance, one company plans to end its sweepstakes operations in Mississippi and New Jersey. Meanwhile, states like Louisiana, Pennsylvania, Connecticut, Delaware, and Michigan are actively targeting and working to shut down offshore and black market sweepstakes operations.