As gaming regulators, state Attorneys General, and state legislatures continue to scrutinize the business practices of online “sweepstakes” casinos, new research shows that consumers overwhelmingly use these platforms to gamble – and that sweepstakes operators are heavily targeting players in key states. By exploiting loopholes in the law, these operations undermine the integrity of the legal, regulated gaming marketplace.

According to Sensor Tower data compiled by the American Gaming Association (AGA), half of all online, real-money casino advertisements seen by consumers in early 2025 promoted offshore “sweepstakes” casinos. The data shows these unregulated operators concentrate their advertising in populous states.

“These operators present themselves like legal, regulated platforms – but they operate outside the law and regulation. 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,” said AGA Vice President of Government Relations, Tres York.

Despite operating outside the regulated gaming market, “sweepstakes” casinos are widely perceived by players as gambling platforms, with 68% of users saying their primary reason for playing is to win real money. This confusion is no accident – many of these sites mimic the look, feel, and language of legal operators, blurring the line for consumers and reinforcing the need for clearer enforcement and public education.

Key findings include:

• 90% of sweepstakes casino users consider the activity to be gambling.

• 69% describe sweepstakes casinos as places to wager real money.

• 80% of sweepstakes players spend monthly, and nearly half spend weekly, without the safety nets offered by regulated operators.

The number of monthly sweepstakes casino players is twice as high in states lacking sweepstakes prohibitions.

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“Sweepstakes” casinos aggressively market on popular digital platforms throughout the country. Legal, regulated gaming operators, by contrast, advertise responsibly in legal states where consumer protections and regulatory oversight are in place.

“The data is clear. Consumers see right through the ‘sweepstakes’ casino facade and they’re calling it what it is: gambling. We look forward to policymakers continuing to enforce their laws and create clarity through new policy measures to protect their residents,” added York.

The Michigan Gaming Control Board (MGCB) has issued cease-and-desist letters to six unlicensed online gambling platforms attempting to target Michigan residents without state authorization. The action underscores the MGCB’s relentless, ongoing efforts to shut down illegal gambling operations and protect Michigan consumers from financial risk, identity theft, and unfair play.

The targeted sites—Crypto Slots, NitroBetting, NewVegas, Las Vegas USA Casino, Grand Rush Casino, and Slotgard Casino—were found to be operating in violation of Michigan laws that require licensure for internet gaming and sports betting.

“These sites were attempting to exploit Michigan players while operating outside the law. We take this seriously. When unauthorized operators offer games without regulation, Michigan players are left exposed—and we will not tolerate it,” said Henry Williams, MGCB Executive Director.

This enforcement action is part of the MGCB’s larger crackdown on illegal online gambling platforms. In recent months, the agency has issued numerous cease-and-desist letters, with additional investigations currently underway.

The MGCB continues to monitor online gaming activity and urges the public to be cautious when engaging with gambling content on social media or through digital advertisements.

The National Indian Gaming Commission (NIGC) announced Gross Gaming Revenues (GGR) of $43.9 billion for fiscal year 2024. This historic figure reflects a $2.0 billion increase over FY 2023, representing an overall growth of 4.6% across the Indian gaming industry.

“This year’s GGR reflects not only the resilience of the tribal gaming industry, but also the dedication of tribal leadership in preserving and growing this important economic driver for their communities. The continued success of Indian gaming is a testament to the strong tribal governance and the sound regulation that protects the integrity of the industry,” said NIGC Acting Chairwoman Sharon Avery.

The GGR figure is calculated from independently audited financial statements from 532 independently audited gaming operations owned by 243 federally recognized tribes across 29 states. Two NIGC regions, Oklahoma City and Washington, D.C., reported double-digit growth over the previous fiscal year.

“These revenue numbers demonstrate the positive impacts of tribal gaming and the essential role it plays supporting tribal sovereignty, job growth, infrastructure, education, and important social, health, and welfare programs in tribal communities – just to name a few. NIGC remains committed to working with Tribes and their regulators to ensure the long-term integrity and success of Indian gaming,” said Vice Chair Jeannie Hovland.