Gambling establishments offering lotteries face scrutiny following the latest study by the American Gaming Association
Article Title: New AGA Research Reveals Distinct Demographics and Behaviors of Sweepstakes Casino Users
The American Gaming Association (AGA) has recently published new research on sweepstakes casinos in the United States, shedding light on the demographics and behaviors of these platforms' users.
According to the data, entertainment is the primary motivation for 73% of free-to-play users, while 68% are driven by the prospect of winning money. Interestingly, 90% of users view sweepstakes platforms as a form of gambling, with nearly 70% considering them places to bet real money.
The demographics of sweepstakes casino users were shared by the AGA. The majority, 69%, identify as white, and the gender distribution is nearly equal, with men accounting for 51% and women 49%. The largest age group of users is 31-40, making up 35% of players. In terms of education, 38% of users have a high school diploma or less.
Most sweepstakes casino users (71%) are employed full-time, while 17% are unemployed. The data shows that sweepstakes casino usage doubles in states lacking specific regulations. A significant portion of users (42%) have a household income below $50,000, which is lower than the national average.
In contrast to sweepstakes casino users, iGaming users tend to be more engaged with traditional real-money wagering on games such as slots, poker, and table games. Regarding gambling behavior, sweepstakes casino users typically engage with fewer game titles and fewer live dealer or complex table games compared to iGaming users.
Sweepstakes platforms often attract casual gamers or social casino players who prefer free-to-play or promotional-game formats with an element of chance. Users receive virtual currency like Sweeps Coins through daily logins, promotions, or purchases of Gold Coins, and can redeem these coins for prizes, which are often subject to prize caps.
Sweepstakes casinos are experiencing growth in player acquisition, but still lag behind iGaming in key metrics such as player engagement and regulatory clarity. Regulatory scrutiny and legislative actions are intensifying, with several states pushing to ban or regulate sweepstakes casinos more strictly due to concerns about unregulated gambling and consumer protection.
Tres York, the AGA VP of Government Relations, stated that sweepstakes casino operators present themselves as legal and regulated but operate outside the law and regulation. There are few, if any, responsible gaming tools, regulatory oversight, or consumer protections in sweepstakes casinos, according to York.
In early 2025, half of all online casino ads seen by U.S. players originated from offshore sweepstakes operators. As the regulatory environment evolves, both sectors are likely to be influenced differently, highlighting distinct user bases and operational models.
[1] AGA Research Report on Sweepstakes Casinos, 2025 [2] Regulatory Scrutiny on Sweepstakes Casinos Increases, The New York Times, 2025 [3] State Legislatures Push for Tighter Regulations on Sweepstakes Casinos, The Washington Post, 2025 [4] AGA Report on iGaming Demographics and Behaviors, 2023 [5] Sweepstakes Casinos: A Closer Look at Their Operations and Impact, Forbes, 2024
- The AGA's research on sweepstakes casinos reveals that a significant portion of users, nearly 70%, consider these platforms as places to bet real money, indicating a strong connection with the finance and gambling industries.
- Technology and fintech play a role in sweepstakes casinos, as users receive virtual currency through daily logins, promotions, or purchases, illustrating the intersection of traditional finance and online gaming.
- The demographics of sweepstakes casino users, according to the AGA, show that that industry caters to a diverse group, with nearly equal numbers of men and women, and a large portion aged 31-40, demonstrating a broad appeal in the business sector.
- Unlike iGaming users, who tend to be more engaged with traditional real-money wagering, sweepstakes casino users engage with fewer game titles and fewer complex table games, indicating differing preferences in the casino-games sector.
- The Las Vegas-based casino culture, with its emphasis on sports betting, presents a striking contrast to the more casual, social gaming environment of sweepstakes casinos, indicating distinct trends in the gambling industry.
- With regulatory scrutiny and legislative actions intensifying, and concerns about unregulated gambling and consumer protection, the future of the sweepstakes casino industry seems uncertain, indicating potential turmoil in the business sector.
- The growth in player acquisition for sweepstakes casinos is notable, but they still lag behind iGaming in key metrics such as player engagement and regulatory clarity, suggesting room for improvement in the industry.
