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Iowa and Minnesota sign bills to crack down on sweepstakes casinos
Minnesota and Iowa have become the latest states to combat sweepstakes casinos with legislation. See what measures they've taken to outlaw sweeps operators.
With more states offering regulated forms of online gambling, there's less tolerance for unregulated gaming in the US. Iowa and Minnesota recently proved this point by signing bills to prohibit sweepstakes casinos. Lawmakers in both states have taken exception to sweeps gaming because, unlike regulated online casinos such as Fanatics, sweepstakes casinos don't have licensing. Sign up at Fanatics Casino here and play $10+ to get 1,000 bonus spins:
Louisiana passes two bills targeting sweepstakes casinos
The Bayou State has approved two pieces of legislation aimed at combating sweepstakes gaming. Gov. Jeff Landry recently signed HB 53 and HB 883 into law. The key changes from these bills include:
- HB53 – Expands the state's definition of racketeering to include, among other activities, "gambling by electronic sweepstakes device." It allows state authorities to pursue and treat non-compliant operators as a criminal enterprise.
- HB 883 – Addresses a "dual-currency system of payment allowing the player to exchange the currency for any prize or award, cash, or equivalent."
Sweepstakes casinos have long used a model of gold coins (no monetary value) and sweeps coins (redeemable for cash & gift cards) to fall under the USPS sweepstakes definition.
However, more states are starting to feel that this model emulates real money online slots and other casino games too closely. Louisiana is apparently one of them since it included specific language targeting the dual-currency system.Â
State lawmakers aren't messing around with these operators because LA racketeering penalties carry a mandatory five-year prison sentence. Max penalties include up to a $1 million fine and up to 50 years of confinement and hard labor.
Iowa gives local regulators more power to fight against sweeps operators
The Hawkeye State is taking a less aggressive approach towards sweepstakes gaming compared to Louisiana. Nevertheless, its lawmakers have made it clear that sweeps casinos aren't welcome in the state.
Gov. Kim Reynolds recently signed SF 2289 into effect. This legislation gives the Iowa Racing & Gaming Commission the power to send cease-and-desist letters to sweepstakes casinos and other unlicensed operators.
It remains to be seen what actions the Racing & Gaming Commission would take against non-compliant operators. But 2289 at least gives state regulators one strong way to discourage sweeps gaming sites.
More regulation could be the best path
One issue with states like Louisiana and Iowa is that they don't have online casino alternatives for their residents. Licensed casino apps give players the ability to enjoy progressive jackpot slots, blackjack, roulette, and more in a safe, legal environment.
Unfortunately, only a small number of states like New Jersey, Pennsylvania, West Virginia, and Michigan provided regulated markets. This means that the majority of the US can't enjoy safe online casinos through apps like BetMGM, DraftKings, and Caesars.
States would have an easier time discouraging their residents from using sweepstakes casinos and other unlicensed sites by providing legal options. Regulation in more states, such as the recent addition of legal Maine online casinos, could gradually reduce the need to pursue sweepstakes operators. Regulated online casino payment methods could also exist.
Responsible gambling
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