US Players Classify Sweepstakes Casinos as a Variation of Gambling Services

The study encompassed 2,250 clients of RMG online portals, free-to-play social platforms, and prize-draw projects. The majority of respondents perceive the latter as a form of gambling.

Main Facts About the AGA

The AGA is a unified trade organisation that advocates for the interests of the US entertainment sector's representatives.

Among its members are:

• sportsbooks;
• industry affiliates;
• iGaming software suppliers;
• commercial and tribal land-based casinos.

The Association actively supports the country’s licensed operators and opposes all forms of sweepstakes. This segment remains largely unregulated in most states, with only a few of them having implemented relevant legislative prohibitions.

Key Takeaways from the Survey

The AGA’s research revealed the following statistics:

• 90% of respondents intentionally attend prize-draw portals and regard them as a gambling activity, similar to slot machines;
• 68% of surveyed customers view winning a large amount as the primary objective of participation;
• 69% perceive sweepstakes as a form of entertainment for real money.

Of those 90% visitors, 31% think such portals can be “probably” classified as gambling projects, while the remaining 59% are unequivocally convinced.

The survey also indicates that 80% of prize-draw website users engage in betting at least once a month, with roughly half of these individuals participating weekly. In states where such activities are unregulated, people gamble twice as often.

Advertising significantly influences the traffic distribution within the industry. According to the AGA’s specialists, more than 50% of all casino marketing materials encountered by customers in 2025 were related to sweepstakes.

Other noteworthy insights from the analytical report:

• approximately 35% of regular prize draw participants are aged 31 to 40;
• the 2nd-largest group of customers (27%) comprises individuals from 41 to 50;
• the gender distribution is almost proportionate, with 51% men and 49% women;
• about 42% earn less than $50,000 annually, which is below the US average;
• nearly 38% of respondents have only a high school diploma or an even lower educational level.

One of the primary distinctions between this form of entertainment and traditional gambling portals is that bets are exclusively placed using a specialised currency known as Sweeps Coins. This provision is legally codified, and niche project owners frequently cite it to assert that their platforms are not associated with iGaming.

In practice, a variety of exchange mechanisms and alternative methods of funds circulation have emerged within the sector. Consequently, tokens are regularly awarded as prizes in slots and similar games. According to the AGA’s experts, 95% of surveyed customers specified that the availability of Sweeps units in Gold Coin suites is of significant importance to them.

Players’ Similarities in Habits

The research demonstrated that the behaviour of draw-based casino clients closely resembles that of individuals who favour regulated iGaming services. These parallels are evident not only in their activities but also in the demographic makeup.

For 82% of online gambling enthusiasts, the primary motivation to play is the chance to win. Likewise, 67% of sweepstakes users initiate a session inspired by the prospect of gaining cash rewards.

The iGaming demographic composition is also largely similar:

• 33% of participants are aged 31–40;
• 26% are individuals between 41 and 50 years old;
• 43% earn less than $50,000 annually;
• 39% possess only a high school diploma.

A minor disparity is noted solely by nationality: 73% of whites prefer real-money gaming, whereas in the sweepstakes segment, this percentage increases to 69%. Hispanics are more inclined to participate in prize draws (11%), with only 8% engaging in regulated online sessions.

Legal Oversight of the Market

Just a year ago, Sweeps Coin betting was permitted without any restrictions in 47 states. Currently, this activity remains lawful in fewer than 40 regions.

The following regions entirely prohibit sweepstakes:

• Idaho;
• Nevada;
• Montana;
• New York;
• Washington;
• Connecticut.

Recently, New Jersey also joined the list after the local assembly approved the corresponding bill on August 15th.

Several states have launched numerous lawsuits to curb illicit activities. For example, in summer 2025, Louisiana issued 40 orders to shut down sweepstakes, with over 20 already enforced. Similarly, West Virginia has sent 47 subpoenas to niche operators. The success of this approach has led to its quick adoption in other regions.

This strategy can already be observed in:

• Arizona;
• Delaware;
• Mississippi;
• Maryland, etc.