Major Study Findings Show That a Large majority of Players Perceive Sweepstakes as Indistinguishable from Gambling
In a recent study conducted by the American Gaming Association (AGA), it was found that 73% of free-to-play users cite fun as their primary reason for participating, rather than financial gain. The margin of error for this study was +/-3.6%, and it was carried out between June 11-24, 2023, with a sample size of 2,250 participants.
The behaviors of sweepstakes players closely resemble those of iGaming players, with 82% of iGaming players reporting money as their main motivation. However, the current legal status of offshore sweepstakes gaming sites in the United States is largely illegal under state laws and unregulated at the federal level.
States like Michigan, Maryland, Connecticut, New York, Louisiana, Delaware, and West Virginia have actively targeted offshore sweepstakes operators. This includes sending cease-and-desist notices, initiating investigations, and negotiating settlements. For instance, Connecticut secured a $1.5 million settlement from one such operator.
Many state officials assert that these sweepstakes-style platforms, despite their branding as "sweepstakes" or "social gaming," constitute illegal gambling because they involve betting cash-redeemable virtual coins on games of chance. A bipartisan coalition of 50 state attorneys general, including Maryland’s AG, recently urged the U.S. Department of Justice to intensify federal enforcement against illegal offshore gaming platforms.
Legal and regulatory entities seek more robust federal tools—such as domain blocking, payment system disruption, and prosecutorial actions—to effectively shut down offshore sites, drawing parallels to the 2011 federal crackdown on illegal online poker sites known as "Black Friday." Some states, such as California, are considering or have introduced legislation to explicitly ban sweepstakes gaming and related machines that mimic slot machines.
Sweepstakes platforms primarily advertise on YouTube, with Reddit coming in as a distant second. Nearly 70% of respondents describe sweepstakes sites as places where people wager real money. In early 2025, half of all online casino advertisements viewed by US players originated from offshore sweepstakes sites.
The largest age group of sweepstakes players is 31-40 years old, making up 35% of players, followed by 41-50 years old (27%) and 21-30 years old (22%). The gender split among sweepstakes players is nearly equal, with 51% identifying as male and 49% as female. 69% of sweepstakes players are white.
VGW, a company that operates sweepstakes sites, plans to end its sweepstakes model in Mississippi and New Jersey. 80% of respondents spend money monthly on sweepstakes sites, and nearly half spend weekly. A significant 59% of respondents view sweepstakes as "definitely gambling," while 31% view it as "probably gambling."
The AGA's vice president of government relations, Tres York, stated that playing games like blackjack or slots in "sweeps mode" and having the ability to cash out is "basically the very definition of gambling." Some jurisdictions have started taking action against illegal gambling sites.
References: [1] ABC News [2] The Hill [3] Forbes [4] AGA
- Sweepstakes platforms, similar to iGaming platforms, have a primary motivation of money for most users, but their legal status is often illegal under state laws and unregulated at the federal level.
- The AGA's vice president, Tres York, explained that playing games like blackjack or slots in "sweeps mode" is "basically the very definition of gambling."
- Sweepstakes sites, such as those operated by VGW, often attract a significant number of players, with around 80% spending money monthly and nearly half spending weekly.
- States are taking active measures against offshore sweepstakes operators, as they view these platforms as illegal gambling sites, despite their branding as "sweepstakes" or "social gaming."
