New Research Depicts Deceptive Practices in Unregulated Sweepstakes Casinos
New findings shed light on the murky landscape of unregulated sweepstakes casinos, exposing consumer confusion, aggressive marketing tactics, and the regulatory gaps that unscrupulous platforms exploit.
The American Gaming Association (AGA) has unveiled fresh research focusing on sweepstakes casinos, intensifying its stance against this often-misleading form of gaming.
One significant discovery is that, despite operating in a legal gray area, sweepstakes casinos adopt branding, language, and features similar to licensed online gambling operators. As the AGA points out, “this approach creates consumer confusion, resulting in players being unable to differentiate these platforms from authorized online casinos.”
Such confusion often leads players to treat sweepstakes casinos as if they were fully legal, despite lacking the regulatory safeguards and consumer protections that licensed operators must uphold, the research emphasizes.
The study highlights that most users perceive these platforms as genuine gambling options, with operators actively targeting critical markets in states with ambiguous or weak regulations.
Data from Sensor Tower, compiled by the AGA, indicates that in early 2025, sweepstakes casino advertisements made up 50% of all online real-money casino ads viewed in the U.S. These ads are predominantly concentrated in populous states and areas where legislation is unclear or enforcement is lax.
In contrast, licensed operators focus their advertising efforts on regions where online gambling is legal, adhering to strict content standards and promoting responsible gaming.
Notably, the AGA reports that 68% of sweepstakes players are primarily motivated by the prospect of winning money.
In response to these concerns, industry stakeholders and advocacy groups stress the necessity for unambiguous legal definitions that clearly differentiate sweepstakes casinos from regulated gaming. They also call for enhanced enforcement to hold rogue operators accountable and for ongoing consumer education initiatives.
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Most recently, California’s Public Safety Committee unanimously approved Assembly Bill 831, which aims to outlaw unregulated sweepstakes-style gambling operations statewide. The legislation intends to close legal loopholes and bolster protections for consumers by explicitly distinguishing these platforms from licensed gaming entities.
While some unregulated sweepstakes casinos claim they offer a legitimate gaming experience, the AGA and many of its members strongly disagree, emphasizing the risks posed by unregulated operators and the importance of safeguarding players from deceptive practices.
