Sweepstakes Social Casinos Under Scrutiny in the United States

Sweepstakes social casinos are currently facing significant challenges in the United States. Despite predictions suggesting that their presence would continue to grow in the coming years, these platforms are under a comprehensive attack targeting their legitimacy. This assault has been initiated by established gambling operators, tribal gaming enterprises, and various business coalitions.

Growing Opposition in Maryland Against Sweepstakes Casinos

The situation has been exacerbated by Mississippi’s decision to become the first state to ban online sweepstakes casinos. Now, Maryland is making strides to follow suit.

A bill, introduced by Sen. Paul D. Corderman, known as Senate Bill 860, is actively seeking to eliminate internet gaming based on the sweepstakes model.

• The Maryland Senate Budget and Taxation Committee passed the Senate Bill 860 with a 13-0 vote.
• House Bill 1140, supported by Eric Ebersole, is under review by the House Ways and Means Committee.

The objective of the Senate bill is to ensure that sweepstakes casinos cannot operate unless they have obtained a license from the Maryland State Lottery and Gaming Control Commission.

Currently, Maryland lacks a clear definition for sweepstakes, allowing these businesses to function based on historical precedents, where sweepstakes are not classified as gambling and thus do not necessitate a license.

Lawmakers have expressed strong opposition to the sector, contending that sweepstakes casinos have consistently violated protocols and have used their framework to infringe upon regulated gambling. Various groups, including the American Gaming Associations and tribal representatives, have described the sweepstakes model as ‘legal acrobatics’, designed to circumvent the law while maximizing business opportunities.

The SPGA, a newly established organization countering this narrative, argues that its operations are legitimate, rooted in historical practice. The association criticizes the abrupt attacks on the sector, emphasizing that millions of people across the United States enjoy sweepstakes casinos and the model they offer.

Unified Push Against the Sector by Lawmakers, Tribes, and Private Companies

In Maryland, there is a growing consensus among lawmakers that could soon render local operations of sweepstakes casinos infeasible. Some platforms, such as MrLuck and Hello Millions, have already exited the market in anticipation of the bill’s likely passage.

Other states are also joining the fight against the sweepstakes model. Recent actions have been initiated by Washington State, New York, and New Jersey. These states have identified similar issues with the sector, arguing that despite promoting free gaming, these platforms still enable users to win real money prizes and generate revenue.