Sweepstakes & Lottery Fraud by State: The States Most Affected
(Featured Image Credit: Sam Greene/The Enquirer / USA TODAY NETWORK via Imagn)
Our analysis reveals where fake winnings cost Americans the most — and how to tell the difference between real luck and a rigged game.
The Odds Are Rigged
Every gambler knows the rush of a win. Scammers know it too — and they’ve weaponised that thrill.
Between 2020 and 2025, Americans lost more than $660 million to sweepstakes and lottery scams nationwide — proof that this isn’t a fringe issue, it’s a long-running industry of deceit (FTC).
In 2024 alone, losses reached $351 million, showing that the problem isn’t slowing — it’s accelerating.
The playbook keeps evolving: from postcards and robocalls to AI-polished “official” notices and social-media DMs that look and sound legit. Impersonation scams — often supercharged by AI — have surged in the past year, according to the Identity Theft Resource Center (ITRC).
We analysed national complaint data to map where these scams hit hardest and why. Fraud isn’t random — it follows patterns of age, access, and awareness. Scammers borrow gaming language — “jackpots,” “winnings,” “congratulations” — but the game is rigged.
“In real gaming, you know the odds,” says a Vegas Insider analyst. “In a scam, the odds are 100% against you.”
Here’s where the fraud runs hottest — and how to tell real luck from a setup.
Key Findings
According to the Federal Trade Commission’s Consumer Sentinel Network Data Book 2024, Americans reported more than $660 million in total losses between 2020 and 2025, with $351 million of that occurring in 2024 alone — one of the largest categories of prize-related fraud in the U.S. (FTC, 2024).
From Texas to Michigan, the story’s the same — high hopes, low verification, and huge losses.
Top takeaways:
- Florida tops the list with $66.3 million lost and over 2,070 scam reports per million residents — more than any other state.
- West Virginia has the highest per-capita rate of any state: 3,367 reports per million residents despite just 1.8 million people.
- North Carolina recorded 2,228 reports per million and $41.4 million in losses, ranking second overall.
- California saw $52.1 million lost — one of the highest in the nation — with many cases tied to fake social-media giveaways and AI-generated “lottery” messages (per the California Attorney General’s consumer alerts).
- Wyoming, Vermont, and North Dakota ranked lowest, each with under 900 reports per million residents.
- AI and impersonation scams surged between 2023 and 2025, according to the Identity Theft Resource Center’s 2025 report, as criminals used deepfakes and fake verification messages to mimic legitimate sweepstakes.
The States Where Scams Hit the Hardest
We analyzed FTC and state complaint data (2020–2025) to reveal where sweepstakes and lottery scams strike most often — and cost the most. The ranking combines verified losses, per-capita reports, and behavioral trends shaping risk across the U.S.
All figures represent cumulative losses and reports from January 2020 through June 2025.
#1 Florida
Florida ranks #1 nationwide for sweepstakes and lottery scams, with victims losing $66.3 million between 2020 and 2025, according to our analysis of FTC data.
A high share of retirees, seasonal residents, and phone-based promotions makes the state the ultimate target zone. Scammers impersonate lottery officials, charge “verification fees,” and exploit trust during peak tourist seasons.
- Victim Score: 80.7
- Total Losses: $66.3 million
- Reports per Million Residents: 2,070
Our Take: “Fraud follows opportunity — and Florida has plenty of both.”
#2 North Carolina
North Carolina ranks second nationally, recording $41.4 million in losses and 2,228 scam reports per million residents.
Cases have nearly doubled since 2020 as fake Publishers Clearing House messages and text alerts sweep through rural and senior communities. Even sheriff’s departments now issue public warnings as scams move from inboxes to doorsteps.
- Victim Score: 64.3
- Total Losses: $41.4 million
- Reports per Million Residents: 2,228
Our Take: “Fraud went mobile — and North Carolina’s scammers followed fast.”
#3 California
California ranks third overall with $52.1 million lost and 1,546 reports per million residents. Its digital-first culture fuels exposure: scammers use AI-generated “lottery official” messages, fake influencer giveaways, and cloned casino promotions to deceive younger victims.
- Victim Score: 62.2
- Total Losses: $52.1 million
- Reports per Million Residents: 1,546
Our Take: “In California, scams evolve as fast as the tech.”
#4 Ohio
Ohio ranks fourth, logging $34.6 million in losses and 2,152 reports per million residents. The state’s active sweepstakes scene gives scammers easy cover to pose as “second-chance drawings,” charging bogus processing or tax fees. Officials say embarrassment and silence keep the real numbers higher than reported.
- Victim Score: 58.1
- Total Losses: $34.6 million
- Reports per Million Residents: 2,152
Our Take: “The silence helps the scammers. Shame is their best shield.”
#5 West Virginia
West Virginia has the highest scam rate per capita in the U.S. — 3,367 reports per million residents — despite total losses of $9.2 million. Many cases trace back to overseas call centers using spoofed U.S. numbers. Small-town trust and limited digital awareness create ideal conditions for repeat targeting.
- Victim Score: 56.9
- Total Losses: $9.2 million
- Reports per Million Residents: 3,367
Our Take: “In small towns, scammers exploit trust as much as technology.”
#6 Arizona
Arizona ranks sixth, with $31.2 million in losses and 2,229 reports per million residents. Scammers target older victims with fake “vacation sweepstakes” and “car prize” pitches. Some use real casino names and branding to appear legitimate, blurring the line between gaming and grifting.
- Victim Score: 56.7
- Total Losses: $31.2 million
- Reports per Million Residents: 2,229
Our Take: “The line between gaming and grifting gets blurry fast in Arizona.”
#7 Oregon
Oregon reports 2,702 scam cases per million residents, placing it seventh with $18.5 million lost. Fraudsters tailor pitches to local values — eco raffles, charity prizes, and “green rewards.” High awareness drives more reporting, meaning Oregon’s numbers reflect vigilance as much as victimization.
- Victim Score: 54.1
- Total Losses: $18.5 million
- Reports per Million Residents: 2,702
Our Take: “Reporting isn’t a weakness — it’s the win.”
#8 Tennessee
Tennessee ranks eighth, with $25.8 million lost and 2,302 reports per million residents. Faith-based prize scams are common — fake church raffles, charity drawings, and Facebook giveaways exploit social trust to collect fees.
- Victim Score: 53.7
- Total Losses: $25.8 million
- Reports per Million Residents: 2,302
Our Take: “If it asks for money first, it’s not a blessing — it’s bait.”
#9 Missouri
Missouri ranks ninth, losing $23.4 million to sweepstakes scams and logging 2,388 reports per million residents. Its central mail routes make it a hub for courier-based fraud, where victims receive realistic checks and letters demanding “delivery fees.”
- Victim Score: 53.1
- Total Losses: $23.4 million
- Reports per Million Residents: 2,388
Our Take: “If it looks too official, check it twice.”
#10 Alabama
Alabama rounds out the Top 10 with $18.9 million lost and 2,569 reports per million residents. Without a state lottery, residents are more vulnerable to fake “national” or “faith-based” jackpots. Scammers exploit charitable language and local trust to extract small “verification” payments that add up fast.
- Victim Score: 52.4
- Total Losses: $18.9 million
- Reports per Million Residents: 2,569
Our Take: “In Alabama, belief itself becomes the bait.”
Where Scams Hit the Least
At the other end of the spectrum, states like Vermont, Wyoming, and Maine report fewer than 1,000 scam cases per million residents — the lowest in the nation.
Small populations, strong community awareness, and quick attorney general response times keep fraud in check. In these states, vigilance and communication — not luck — are the real safeguards.
“The best defense isn’t stronger enforcement,” says a Vegas Insider analyst. “It’s knowing the game before you play.”
The Vegas Insider Take
Sweepstakes scams don’t just steal money — they hijack emotion.
The promise of a prize, a sudden win, or a dream vacation mirrors real gambling psychology — except here the game is fixed from the start.
Legitimate play always comes with transparency and verified platforms. If you’re looking for the real thing, start with trusted sweepstakes casinos or vetted real-money operators like the Golden Nugget Online Casino, where fairness and licensing are clear from the first spin.
“Fraud runs on emotion,” says a Vegas Insider analyst. “Scammers sell the same fantasy as the casino floor — except the house always wins.”
These findings reflect what law enforcement calls modern lottery fraud: a digital con that mimics legitimate play to steal data and cash.
The patterns are always the same: urgency, secrecy, and pressure to act fast. Real winnings never need that.
“The real giveaway isn’t the prize,” the analyst adds. “It’s the push. Any message that demands payment or silence is a bluff — and the odds are 100% against you.”
In the world of gaming and gambling, knowledge is the only true edge — and that’s what we aim to give our readers: clear, trusted insight that separates real wins from costly bluffs.
How to Protect Yourself
Knowing the signs of lottery fraud is only half the battle — prevention is the real win.
Here’s how to avoid scams and protect yourself from future lottery fraud cases.
Vegas Insider’s Five Golden Rules of Real Winnings
1. If you didn’t enter, you didn’t win.
Every legitimate prize starts with participation. No entry means no payout — ever.
2. Fees equal fraud.
Real sweepstakes never ask for “verification,” “processing,” or “delivery” fees. If you’re asked to pay to claim a prize, it’s a scam.
3. Social media is not official.
No genuine lottery, casino, or giveaway notifies winners by direct message, text, or social post.
4. Pressure is a tell.
Urgency, secrecy, or demands to “act now” are classic scam tactics. Real winnings don’t expire overnight.
5. Trust, but verify.
Confirm all prize notifications through the organization’s official website or customer service channel — not the link or number provided in the message.
Where to Report Suspected Scams
To report lottery fraud, contact the Federal Trade Commission or your state’s Attorney General.
Your State Attorney General’s Office – Most states offer consumer fraud hotlines and online reporting portals.
Better Business Bureau Scam Tracker – Log details to help alert other consumers and track fraud trends.
Nevada Gaming Control Board – Report Vegas- or casino-related scams or suspicious gambling activity.
Methodology
We analyzed five years of sweepstakes and lottery fraud data (2020–2025) from the Federal Trade Commission’s (FTC) Consumer Sentinel Network, which collects scam reports from consumers and partner agencies nationwide.
Timeframe: January 2020 – June 2025
Source: FTC Consumer Sentinel Network Data Book – “Prizes, Sweepstakes & Lotteries”
Scope: All 50 U.S. states and the District of Columbia
Total losses and report rates are cumulative across the five-year period (2020–2025) and not annualized.
Metrics
Each state was evaluated across three key measures:
- Total losses – The total amount of money lost to sweepstakes and lottery scams between 2020 and 2025.
- Reports per million residents – The number of scam reports, adjusted for population size.
- Victim Impact Score (0–100) – A composite index giving equal weight to financial losses (50%) and report frequency (50%).
Ranking
States were ranked by both losses per capita and reports per capita, then combined into the overall Victim Impact Score, which determines where scams hit the hardest.
Limitations
Figures are based on reported data; real losses are likely higher due to underreporting and state-by-state differences in how “sweepstakes” and “lottery” fraud are classified.
Sources
- Federal Trade Commission (FTC) – Consumer Sentinel Network Data Book 2024 (Prizes, Sweepstakes & Lotteries category)
- Identity Theft Resource Center (ITRC) – 2025 Annual Data Breach & Impersonation Scam Report (report notes a 148% year-over-year increase in impersonation scams)
- California Attorney General – Consumer Alert: Beware of AI-Generated Lottery & Sweepstakes Scams (2024)
- Better Business Bureau (BBB) – BBB Scam Tracker Reports
- U.S. Department of Justice (DOJ) – Consumer Protection Branch – Enforcement Actions and Fraud Bulletins
- Federal Bureau of Investigation (FBI) – Internet Crime Complaint Center (IC3) Annual Reports
- State Attorney General Offices – State-by-State Consumer Protection Portals
- Public Awareness Campaigns and Enforcement Releases – State and federal initiatives related to lottery and sweepstakes scams
Conclusion
Sweepstakes scams will keep evolving — from postcards to DMs to AI-generated “wins” that feel real enough to believe. But the rules never change. In gaming and in life, the safest bet is always the same: play smart, verify before you pay.