In the last month, the landscape for sweepstakes casinos has shifted significantly as they withdraw from several key states, coinciding with lawmakers pushing forward with bills aimed at banning these operations across the United States.
The sweepstakes casino industry is under increasing examination from both legislators and regulatory bodies nationwide. Over the past month, numerous platforms have revised their operational territories, with Illinois emerging as a notable case. In early February, the state issued cease-and-desist letters to 65 operators, with only two complying initially, while others have followed suit in recent weeks.
Here are some of the notable exits from the market:
- Carnival Citi: Hawaii, Illinois, Indiana, Maine, North Dakota, Ohio, Vermont
- Lonestar Casino: Tennessee
- Moonspin Casino: Tennessee
- Sixty 6: Arizona, California, Illinois, Virginia
- Ruby Sweeps: Illinois
- Sweeps Jungle: Arizona, California
- Zunado: West Virginia
- The Win Zone: Arizona, California, Pennsylvania, Rhode Island, West Virginia
- Gold Treasure: Illinois
- Spin Saga: Illinois and Minnesota
California has officially prohibited sweepstakes casinos since January 1, yet some operators are still revising their terms. Carnival Citi, known for its cautious approach, has added Indiana and Maine to its restricted list, as a ban is set to take effect in Indiana on July 1, and Maine is advancing a prohibition bill.
Legislative Developments: Key States to Monitor
This year, over a dozen states have introduced or progressed legislation targeting sweepstakes casinos. Here are the primary jurisdictions to keep an eye on:
- Maine: The Senate passed LD 2007, which explicitly bans “sweepstakes games” defined as online games employing a dual-currency system. The bill is currently pending in the House.
- Tennessee: The Senate unanimously approved SB 2139, which prohibits “online sweepstakes games.” However, progress in the House has been slow.
- Oklahoma: The Senate passed SB 1589, defining “online casino games” as those involving any risk of value, including dual-currency systems.
- Iowa: The Senate passed SF 2289, which doesn’t directly target sweepstakes casinos but expands the Iowa Racing and Gaming Commission's authority over unregulated gambling.
- Maryland: The House passed two bills targeting sweepstakes casinos just before the crossover deadline, with both bills receiving Senate hearings.
- Minnesota: Lawmakers have introduced two bills, HB 4474 and HB 4410, focusing on dual-currency payment systems.
The legislative sessions for these states are set to conclude in the coming weeks, making this a crucial period for the future of sweepstakes casinos.