Consumers Say Sweepstakes Casinos Are Gambling

The debate over sweepstakes casinos is heating up, and new research from the American Gaming Association (AGA) makes one thing clear: players see these sites as gambling, no matter how they’re marketed.

Before diving into the details, here are a few things to keep in mind:

Good to know

• 90% of sweepstakes casino users say they consider the activity gambling.
• States like Montana and Connecticut have already moved to ban unlicensed sweeps.
• Major operators like VGW have exited multiple states to avoid legal battles.

Sweepstakes casinos let users play with free coins but also allow buying extra coins with real money or cryptocurrency. Those coins can be redeemed for cash or prizes, creating a real-money experience without a gaming license.

The AGA says these operators often look like legal online casinos, but they are unregulated and leave players exposed.

“These operators present themselves like legal, regulated platforms – but they operate outside the law and regulation,” said Tres York, AGA vice president of government relations. “There are few if any responsible gaming tools, no regulatory oversight, and no consumer protections. It’s a dangerous subterfuge that puts players at real risk.”

Meanwhile, the Social and Promotional Games Association (SPGA), the lobbying arm for sweepstakes operators, continues to push back. When Louisiana lawmakers proposed a ban earlier this year, the group called the move “reckless,” arguing that traditional promotional sweepstakes used by brands for decades could be swept into the same category.

New Data Underscores the Risk

According to Sensor Tower data compiled by the AGA, consumer perception is clear:

1. 90% of sweepstakes players see the activity as gambling.
2. 69% of consumers say these sites are where they “wager real money”.
3. 80% of users spend monthly, and nearly half spend weekly, without regulated safeguards.
4. States without bans have double the monthly sweepstakes players compared to states with restrictions.

The AGA’s findings highlight why regulators are starting to act.

States Start Closing Loopholes

Several states have already passed or considered legislation to address the issue. Montana became the first state to specifically ban sweepstakes casinos, with Connecticut quickly following. Louisiana’s governor vetoed an anti-sweeps bill but said current laws were already sufficient to keep these operations illegal.

State Attorney General Liz Murrill supported that stance, noting that iGaming or online casino games “is not a legal form of gaming in Louisiana, as no law authorizing it has been passed nor any election for such has been conducted.”

Some operators aren’t waiting for final votes. VGW, the company behind Chumba Casino and Luckyland Slots, has already withdrawn from states that are cracking down. Their exit list includes Montana, Connecticut, Washington, Michigan, Idaho, Nevada, New York, and Delaware.