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The Department of Consumer Protection in Connecticut has issued a suspension of license for High5Games, which it says also illegally operated another online casino. High5Games is a legal licensed service provider in the state of Connecticut - but in a recent investigation conducted by the DCP, it was found that High5Games also illegally operates High5Casino, which is unlicensed. The Connecticut Department of Consumer Protection (Gaming Division) has submitted a suspension of the Online Gaming Service Provider license held by High5Games following an investigation that revealed the company was illegally operating another online casino which remains without a license, High5Casino. High5Games, a licensed developer and provider of slot content for legal gaming platforms, was found to be running High5Casino without proper authorization. The platform was falsely marketed as a legally licensed casino and was also accepting wagers from Connecticut residents, including persons who had voluntarily signed up for the Voluntary Self-Exclusion List in the state. Violation of Connecticut gaming laws Connecticut law permits only two platforms to offer iCasino wagering within the state: DraftKings and FanDuel, which operate under agreements with Foxwoods Casino and Mohegan Sun, respectively. The DCP Gaming Division's investigation stated that High5Casino had accepted deposits from 1,100 players in Connecticut, with 911 individuals collectively losing $937,938. Alarmingly, 108 of these individuals were on the state's Voluntary Self-Exclusion List, and they lost nearly $300,000 on the illegal platform. As a result of these violations, High5Games is now facing 1,065 criminal counts of illegal gaming activities. Each count is classified as a Class A misdemeanor under Connecticut law, carrying a maximum penalty of up to one year in jail as well as a fine of up to $2,000 per violation. DCP pledges consumer restitution and enforcement DCP has stated that it will seek compensation for eligible consumers who suffered financial losses due to the misleading marketing of High5Casino as a legitimate platform. "Thank you to our Gaming Division team for their hard work to hold this licensee accountable," said Bryan T. Cafferelli, DCP Commissioner. He went on to say that holding a gaming license is a privilege, and they expect their credential holders to take that responsibility seriously. But High5Games took advantage of their credential to mislead consumers into believing they were engaging in legal gaming when, in reality, they were breaking the law. Furthermore, he stated: "We remind consumers that there are only two licensed online casinos in Connecticut - DraftKings/Foxwoods and FanDuel/Mohegan Sun. If you choose to participate in online gaming, ensure you use only these licensed platforms." Kris Gilman, the DCP Gaming Division Director, echoed this sentiment, expressing disappointment that a licensed service provider exploited Connecticut consumers. "It is difficult to recover funds from illegal platforms," Gilman said. "Gambling on licensed platforms is the only way to guarantee recovered funds in the event of an issue with a game or platform." Immediate suspension and removal of High5Games content The suspension of High5Games' Online Gaming Service Provider license is effective immediately. Additionally, all games provided by High5Games to DraftKings and FanDuel will be removed from their platforms. A copy of the official summary suspension order has been made available to the public. The DCP encourages consumers to report any gaming-related issues or concerns by contacting [email protected]. For individuals experiencing gambling-related issues, confidential support is available through the Connecticut Council on Problem Gaming's 24/7 Problem Gambling Helpline at 1-888-789-7777 or by visiting ccpg.org. Additional information about self-exclusion programs and resources for those struggling with gambling addiction can be found at portal.ct.gov/problemgaming or ct.gov/selfexclusion. As regulatory authorities continue to uphold gaming laws in Connecticut, consumers are reminded to exercise caution and only engage with legally licensed online gaming platforms.

As more states place sweepstakes casinos under closer scrutiny, some online sweepstakes operators have already made their exit from certain states. Hello Millions and McLuck have exited the states of West Virginia and Maryland, and three other sweeps casinos have pulled out of Maryland as well, namely Mega Bonanza, Spree, and Jackpota. The exodus of online sweepstakes casinos from West Virginia and Maryland continues, as regulatory scrutiny intensifies against the controversial gaming vertical. Leading brands like Hello Millions and McLuck have now added both states to their growing list of restricted territories, while three additional platforms - Spree, Mega Bonanza, and Jackpota - have officially ceased operations in Maryland as of February 21. These five brands now block users from a minimum of 12 US states. The recent departures align with growing regulatory pressure in both states, as lawmakers and enforcement agencies take decisive action against online sweepstakes casinos. Maryland, in particular, is considering an outright ban, while West Virginia's Attorney General is reportedly investigating the industry's operations. Maryland lawmakers push for ban following cease-and-desist orders Senator Paul Corderman from Maryland has introduced Senate Bill 860 (SB860), which explicitly seeks to prohibit sweepstakes casinos. The bill defines these platforms as online gaming sites that employ a dual-currency system - one that utilizes both free and real money - mimicking the experience of traditional online casinos or lottery-style gaming. If passed, SB860 would criminalize not only sweepstakes operators but also service providers that support these platforms. SB860 is set for a committee hearing on the 5th of March, with its House counterpart, House Bill 1140, scheduled for discussion the following day. The bill was introduced following a series of cease-and-desist letters issued by the gaming regulator of Maryland to several unauthorized online gambling operators, which included some offering sweepstakes-based gaming products. The Maryland Lottery and Gaming Control Agency has confirmed that it issued a cease-and-desist order to McLuck but has not publicly disclosed enforcement actions against the other four brands that recently exited the state. West Virginia investigates sweepstakes operators On the other hand, West Virginia Attorney General JB McCuskey is reportedly leading a probe into the operations of multiple sweepstakes casinos. While specific details remain undisclosed, industry sources suggest subpoenas have been issued to several sweepstakes gaming companies as part of an ongoing investigation. Mega Bonanza, one of the recently withdrawn brands, confirmed in a statement that it has ceased operations in Maryland but did not provide additional details regarding its decision or its standing in West Virginia. The state's regulatory authority has not yet commented on whether further enforcement actions are forthcoming. Industry-wide retreat from US markets The sweepstakes casino sector has been facing increased legal scrutiny across the US, leading to multiple market withdrawals beyond Maryland and West Virginia. Just last week, High 5 Games, a major online gaming entity, announced it would shut down its operations in six states that currently have legal online casino gaming, which includes West Virginia. Similarly, Stake.US has also recently exited the Mountain State and several other jurisdictions. Beyond these two states, the national outlook for sweepstakes casinos remains uncertain. Mississippi recently became the first state legislative body to approve a full ban on online sweepstakes gaming. Meanwhile, in New Jersey, lawmakers are exploring an alternative approach - proposing to regulate sweepstakes casinos under a framework similar to online casino gaming and sports betting. What's next for sweepstakes gaming? With mounting regulatory pressure, it is unclear how many more states will move to restrict or ban online sweepstakes casinos in the coming months. The industry, which has long operated in a legal gray area, is now facing an increasing number of legal challenges that could reshape its future in the US market. For Maryland and West Virginia players who relied on these platforms for entertainment, the closures mark yet another shift in the rapidly evolving gaming arena. As legislative efforts and enforcement actions continue, the industry will closely monitor how these developments impact the wider regulatory environment for online gaming across the nation.

A recent class action lawsuit was filed against High 5 Games by players in the state of Washington who alleged that they lost money while playing the games on High 5 casino. A previous court ruling has classified High 5's social casino games as illegal gambling under state law, and the evidence submitted in court has claimed that High 5 Games has targeted players who spend more - including those with gambling addictions. In a historic ruling, a Washington state jury has ruled against High 5 Games, indicating the first class action verdict to win against a social casino operator. The jury awarded $24.9 million in damages to consumers in Washington who lost money while playing the company's online casino games. This verdict follows a prior court decision that classified High 5 Games' social casino products as illegal gambling under the law of Washington state. Social casino model deemed illegal Social casinos operate by offering digital casino-style games and slot machines where players may buy virtual chips using real money. Although these chips hold no cash value whatsoever, plaintiffs argued that they functioned as gambling bets as players had to purchase more chips to continue their gameplay. Last year, a court found that High 5's social casino model breached Washington state gambling laws. The jury determined that the customers of High 5 in Washington had lost almost $18 million through its games. In addition to this amount, the jury awarded $7 million in statutory damages, bringing the total payout to nearly $25 million. Targeting high-spending users During the trial, evidence presented in court revealed that High 5 Games specifically targeted high-spending users, often referred to as 'whales.' The company allegedly provided free chips to entice these players to continue playing. One of the most alarming revelations was that a player who had requested their account to be closed because of gambling addiction was instead offered incentives to keep playing. This approach, combined with the financial losses suffered by Washington players, played a crucial role in the jury's decision. A crucial moment for the social casino industry The verdict against High 5 Games comes on the heels of multiple settlements in similar cases, where social casino operators have collectively paid more than $650 million in compensation to affected players. However, unlike other companies that opted to settle, High 5 Games chose to fight the allegations in court, ultimately leading to this significant jury verdict. The ruling is expected to influence current litigation against major tech companies, including Meta, Amazon, Apple, and Google. These corporations allegedly profit from these social casinos because they process payments and collect transaction fees, positioning themselves as financial intermediaries in the industry. Todd Logan of Edelson PC, the law firm that represents the plaintiffs, emphasized the implications of the case, stating: "Big Tech isn't just standing by - they're cashing in. This verdict is a milestone, but it's only the beginning." High 5 Games expands amid legal battles Despite its legal challenges, High 5 Games has continued its expansion in the US online gaming market. In July of 2024, the company arrived in West Virginia, marking its fifth regulated market in the country. Its gaming portfolio includes popular titles such as Da Vinci DeluxeWays, Green Machine Deluxe, and 88 Drums. The outcome of this case could have far-reaching consequences for the social casino industry and the tech giants that facilitate its operations. With regulators and legal experts closely watching, this ruling may serve as a reason for further action against social casino operators and the platforms that support them. As more lawsuits emerge and legal scrutiny intensifies, the industry faces mounting pressure to reassess its business practices and regulatory compliance, particularly in states like Washington that have taken a firm stance against social casinos operating in a legally gray area.

Mississippi's Senate is the very first legislative body in the United States to ban online sweepstakes casinos outright. Although numerous states have taken some form of action against illegal sweepstakes, Mississippi is the first state to approve a ban to prohibit sweepstakes casinos online, with the Senate voting 44-1. With this, the bill will now head to the House of Representatives. In a historic move, the Mississippi Senate has become the first governmental body in the United States to approve a ban on online sweepstakes casinos. The legislation, Senate Bill 2510, was overwhelmingly passed with a 44 to 1 vote and is now headed to the House of Representatives in Mississippi for further consideration. Bill moves to the House of Representatives The bill, introduced by Senator Joey Fillingane, seeks to amend existing state laws to classify online sweepstakes casinos as illegal gambling activities. Specifically, the legislation expands the definition of prohibited gambling devices to include any "online, interactive, or computerized version of any game as defined in section 75-76-5 or any other game of chance or digital simulation thereof." This includes sports pools, online race books, and sweepstakes casino games. "Many Mississippians have no idea when they're on their device that they're even breaking the law because it looks completely legitimate," Fillingane stated during the hearing in the Senate. "They look just like legal online betting sites." Stronger penalties for illegal operators If passed by the House, the bill will impose stricter penalties on online sweepstakes operators. Under the proposed law, operating an online sweepstakes casino in Mississippi would be elevated from a misdemeanor to a felony offense. Violators could face fines of as much as $100,000 per offense or imprisonment for up to 10 years. Additionally, the legislation allows the state to seize and forfeit "assets, rights, and privileges" related to illegal gaming activities. These measures aim to deter operators from continuing their services in Mississippi and strengthen the enforcement of gaming laws. Crackdown on illegal gaming platforms Fillingane emphasized that the bill does not target individual users who unknowingly participate in illegal gaming activities but rather focuses on the operators who run these platforms. "That is in fact the need for this legislation," he explained. "The legislation does not target people who are on their devices mistakenly playing an illegal game. We're only targeting online operators, the people who put the platforms up, not the end user." The senator also highlighted the presence of illegal online sportsbooks and casinos, such as Bovada, that continue to operate within the state despite regulatory efforts. The Mississippi Gaming Commission has previously issued cease-and-desist orders to five of the biggest illegal gambling operators, but none have complied. Increasing enforcement power With the failure of cease-and-desist efforts, lawmakers believe SB 2510 will give the state additional authority to enforce gaming regulations. By implementing severe penalties and asset forfeitures, the bill aims to eliminate the presence of unauthorized online casinos and protect consumers from potentially deceptive gambling platforms. If approved by the House and signed into law, Mississippi will set a precedent for other states considering similar measures against online sweepstakes casinos. The upcoming vote in the House of Representatives will determine the fate of the bill and whether Mississippi will officially become the first state to outlaw these platforms. What's next? The bill now moves to the House of Representatives, where lawmakers will debate its wider implications and its potential impact on the state's gaming industry. Supporters argue that the legislation will provide much-needed clarity on legal gambling while protecting consumers and enforcing existing laws. However, opponents may raise concerns about restricting access to online gaming options.

It's confirmed: after a source informed media outlets last week that the Attorney General of West Virginia, JB McCuskey, was going to serve a subpoena to several sweepstakes casino operators, the AG has confirmed it. There aren't too many details about the subpoenas because the AG cannot comment on them until the operators respond. But the Social and Promotional Games Association isn't happy - and says the AG did West Virginians a disservice. The Attorney General for West Virginia, JB McCuskey, has officially served subpoenas to operators of so-called sweepstakes gaming platforms, according to a source with direct knowledge of the matter. This development follows last week's report from Casino Reports, which first revealed that McCuskey was preparing to take legal action against these operators. The subpoena details are insufficient Details surrounding the subpoenas remain scarce, as the law in West Virginia prohibits the attorney general from disclosing the contents of the subpoenas or commenting further until a response is received from at least one of the targeted operators. However, McCuskey's prior statements hint at the seriousness of the situation. "We have serious concerns about West Virginia consumers, specifically our children, being targeted by illegal gambling operations," stated McCuskey on the 29th of January. "From day one, my priority has been to protect consumers and ensure our children are not being exposed to these operations or their advertising - while at the same time supporting those which are licensed and operating within the confines of the law. At this time, we cannot comment on specific cases or provide any further details." McCuskey, who has served as West Virginia's Attorney General since the 13th of January, has yet to disclose which operators or how many were served with subpoenas. This move demonstrates his office's commitment to scrutinizing gaming operators that may be skirting the boundaries of legal compliance. The SPGA pushes back The Social and Promotional Games Association or SPGA, a prominent trade organization that represents sweepstakes and social gaming operators, responded swiftly to the news. While the SPGA did not confirm whether any of its members had received subpoenas, it issued a strong statement on Friday morning, criticizing what it referred to as the Attorney General's "proposal to subpoena sweepstakes operators." "West Virginia Attorney General JB McCuskey is mistakenly conflating social casino sweepstakes games - a free-to-play form of entertainment enjoyed safely and legally by millions of adult Americans - with illegal real-money gambling operations," the statement from the SPGA read. It continued, "Research has found no meaningful overlap between social sweepstakes and real-money gambling. Consumers see them as different products that they engage with for different reasons." The organization went on to argue that McCuskey's actions could harm West Virginia's digital economy. "McCuskey's actions do a disservice to West Virginians by ignoring the reality: Social sweepstakes are a legally compliant form of entertainment that gives players more choice, enables digital entrepreneurs, and creates high-skilled American jobs. Protecting consumers means embracing innovation, not stifling competition under the guise of concern." Legal gray areas The legitimacy of sweepstakes gaming has always been a contentious issue across the United States, especially in recent times. While proponents argue that these games offer a legal, free-to-play alternative to traditional gambling, critics - including licensed operators, state regulators, and tribal gaming leaders - contend that they exploit legal loopholes to operate outside stringent gambling regulations. West Virginia comprises just one of the seven states that have authorized regulated online casino gaming, joining Pennsylvania, New Jersey, Michigan, Connecticut, Rhode Island, and Delaware. Among these, New Jersey is currently the only state which has introduced regulations and legislation aimed at regulating sweepstakes casino operators. The absence of clear federal guidelines leaves each state to navigate its approach to sweepstakes gaming independently. This patchwork of regulations has led to inconsistent enforcement and widespread debate within the industry. As McCuskey’s subpoenas develop, they may set a precedent for how other states address the issue. What's next? With subpoenas now served, attention turns to how the targeted operators will respond. If any choose to contest the subpoenas, it could lead to a legal battle that further clarifies the status of sweepstakes gaming in West Virginia and potentially beyond. For now, the attorney general's office remains tight-lipped, bound by legal constraints until operators formally reply. Meanwhile, the SPGA's response indicates that the industry is prepared to defend itself vigorously against what it views as unwarranted regulatory overreach.

Several lawmakers in the state of Connecticut are making an effort to ban online sweepstakes as well as lottery ticket courier services. The Connecticut General Law Committee has filed a Senate Bill that seeks to ban the resale of lottery tickets and ticket couriers delivering lottery tickets to customers. Aside from this, it also seeks to prohibit simulated or real iGaming or sports betting for sweepstakes casino operators. A new bill introduced in Connecticut could lead to sweeping changes in the state's gambling landscape, specifically targeting lottery ticket courier services and online sweepstakes. The measure, Senate Bill 1235, was filed by the Connecticut General Law Committee and aims to prohibit the resale of lottery tickets and the operation of ticket courier services. Additionally, the bill seeks to ban simulated or real online casino gaming and sports wagering for sweepstakes operators. The introduction of SB 1235 comes at a time when online sweepstakes and casinos are under increasing regulatory scrutiny. The bill has sparked significant debate, as it could impact multiple gaming and lottery-related businesses operating within the state. Regulatory crackdown on sweepstakes operators The proposed legislation follows recent enforcement actions against online sweepstakes companies. In 2024, the Connecticut Department of Consumer Protection issued a cease-and-desist letter to Virtual Gaming Worlds, the world's biggest sweepstakes casino operator. The DCP accused Virtual Gaming Worlds of operating unlicensed gambling that violated fair trade practices and state laws. In response to the enforcement action, VGW ceased its operations in Connecticut. SB 1235 explicitly targets sweepstakes that do not involve the sale of goods, property, or services. If passed, it would grant state authorities the power to apprehend "any simulated gambling device that is used in a sweepstakes or promotional drawing." Violations of the bill's provisions would be classified as deceptive or unfair trade practices and could result in legal penalties. Furthermore, individuals found guilty of engaging in professional gambling under the proposed legislation could face a Class D felony charge. Lottery couriers under scrutiny The bill also takes aim at ticket courier services, which facilitate the purchase and delivery of lottery tickets on behalf of customers. SB 1235 defines a ticket courier as a "for-profit delivery service operated for the purpose of purchasing lottery tickets for games." This provision would effectively ban online ticket courier services like Jackpot.com and Jackpocket from operating in Connecticut. If enacted, the legislation could significantly impact the online lottery sector by limiting how consumers purchase tickets. Proponents of the bill argue that it is necessary to protect consumers from unregulated gambling operations, while critics argue that it restricts legitimate businesses and stifles competition in the lottery industry. A busy legislative period for Connecticut's gambling laws The introduction of SB 1235 is just one of several gambling-related measures being considered in Connecticut's legislative session. Recently, Representative Tony Scott proposed a series of bills aimed at modifying online sports betting regulations. Among his proposals is House Bill 5564, which seeks to establish a maximum hold percentage for sports wagers. Scott is also advocating for Connecticut to allow betting on college sports within the state, a move that could expand the state's sports betting market. In addition, Representative Christopher Rosario introduced a separate measure that would regulate and authorize sports betting done in-flight on commercial flights that originate or land in Connecticut. While federal law currently prohibits gambling on commercial flights, it does permit sports betting at airports located within jurisdictions that have legalized such activities. Both Scott's and Rosario's proposals, along with SB 1235, have been transferred to the General Law Committee for further review. Lawmakers will now assess the potential impacts of these bills on Connecticut's gaming industry and consumer protections. With multiple gambling-related bills under consideration, Connecticut's legislative session is shaping up to be a crucial moment for the future of gaming in the state. The outcome of SB 1235 and related measures could have lasting implications for online gambling, sports betting, and lottery services in Connecticut.

The ADG, which stands for the Arizona Department of Gaming, has just announced that it is taking a stand against illegal sweepstakes casinos online. It has released a Public Service Announcement aimed at visitors and residents with the proper tips and resources for safe and responsible gambling practices in the state. The Arizona Department of Gaming is taking a firm stand against online sweepstakes and casino platforms operating illegally that are unlawfully accepting users and customers within the state. To protect Arizona residents as well as visitors from potential fraud, financial losses, and identity theft, the ADG has released a public service announcement (PSA) offering tips and resources for safe and responsible gaming. ADG's warning to bettors As online sweepstakes and casino platforms grow in popularity, they have also come under increased regulatory scrutiny nationwide. In response, the Arizona Department of Gaming is urging bettors to exercise extreme caution when engaging with online gambling platforms. "Many of these operations are not legal or regulated, leaving users vulnerable to fraud, identity theft, and other serious risks," stated the ADG in its Public Service Announcement. "Due to their unregulated nature, the ADG is unable to resolve complaints and disputes arising from unregulated and illegal gaming sites, leaving victims with little to no chance of recovering lost funds." The department has identified a number of illegal online casinos and sweepstakes platforms operating within Arizona, prompting concerns about their potential to mislead and exploit unsuspecting players. To combat these risks, the ADG is urging bettors to verify the legitimacy of free-to-play offers and online casinos before participating. Efforts to protect players and combat fraud The ADG's stance against illegal gambling is part of its wider effort to safeguard players in Arizona from financial losses and fraudulent schemes. These efforts align with the department's commitment to preventing identity theft and addressing fraudulent tax claims made by certain sweepstakes operators. The release of the ADG's PSA coincides with Identity Theft Awareness Week, demonstrating the risks posed by unregulated gaming platforms. The department hopes this timing will raise awareness about the financial and personal security dangers linked to illegal gambling. Arizona gaming law and sweepstakes regulations Arizona law places online sweepstakes and casino gaming under close scrutiny, with only a few free-to-play games deemed legal. While the state does not explicitly define sweepstakes gaming, it upholds strict standards to regulate permissible free-to-play games. For example, for a free-to-play contest or game to be considered legal in Arizona, it must meet the following criteria: No purchase or monetary consideration is required for participation. No additional requirements or limitations can be imposed on free participation. All participants must have the same opportunity to enter and win, regardless of whether they choose to donate or make a purchase. These regulations ensure fairness and prevent deceptive gaming practices that could exploit Arizona residents and visitors. ADG's previous warnings about gaming scam calls This is not the first time the ADG has warned against fraudulent gambling schemes. Last year, the department issued an alert about a rise in scam calls targeting residents and visitors in Arizona and its neighboring states. Scammers were found impersonating ADG representatives, falsely claiming affiliation with the regulator to steal personal information and money. These fraudulent callers often lured victims with promises of sweepstakes winnings that did not require participation, ultimately deceiving individuals into disclosing sensitive financial details. As illegal online sweepstakes and casino platforms continue to target Arizona bettors, the ADG remains steadfast in its mission to protect players and promote responsible gaming. By raising awareness and providing educational resources, the department aims to help residents and visitors make informed decisions while avoiding the risks associated with unregulated gambling sites.

The Maryland Lottery and Gaming Control Agency has produced a report which gives details on its 11 cease and desist letters sent to sweepstakes casino operators. These operators are now required to stop operating in Maryland and serving the state's customers because they are believed to have been offering illegal online casino gaming. The Maryland Lottery and Gaming Control Agency has taken decisive action against online gaming operators it believes are operating illegally within the state. In a report published earlier this week, the agency confirmed that it had issued cease-and-desist (C&D) letters to a total of 11 sweepstakes casino and sportsbook operators, urging them to stop serving Maryland customers immediately. The agency provided a list of the targeted operators. Among them, six companies - Golden Hearts, McLuck, Zula, REBET, Stake.US, and Fortune Coins - acknowledged receipt of the letters and responded to the agency. The remaining five, namely BETUS, SlotsAndCasino, BETNOW, BetAnySports, and Everygame Sportsbook - did not respond to the directive. Sweepstakes operators under scrutiny The six operators that responded are all sweepstakes-based platforms, a category of online gaming that has often operated in legal gray areas across the US. Notably, Stake.US is the social gaming counterpart of Stake.com, a well-known international gaming entity. REBET, another recipient of a C&D letter, had previously announced nearly a year ago its intention to offer a sweepstakes sportsbook in 47 states. While sweepstakes operators argue that their business models comply with state and federal legislations and regulations, critics have accused them of exploiting legal loopholes to provide real-money gaming disguised under the sweepstakes model. The decision to single out these six companies from a broader pool of sweepstakes operators remains unclear, raising questions about the selection process. Offshore sportsbooks also targeted In addition to the sweepstakes companies, the remaining five operators that received C&D letters are believed to be offshore sportsbooks or online casinos. These sites, which often operate outside US jurisdiction, have long faced scrutiny from state regulators for offering online betting services without proper licensing. But despite the official warning, none of the 11 operators have halted operations in Maryland, according to the MLGCA's latest findings. A growing trend in enforcement The crackdown on these operators comes amidst increased regulatory action against unlicensed gaming platforms across the country. Maryland's move follows a trend of state-level enforcement actions against sweepstakes operators and offshore sportsbooks. Earlier this year, Bovada, a major offshore betting platform, was issued C&D orders in multiple states and subsequently withdrew from the Maryland market. In the meantime, lawmakers are proposing bills left and right that seek to limit or even ban these sweepstakes casinos and gaming operators outright, such as a recent bill filed in Mississippi. It's apparent that state regulators nationwide have been closely monitoring sweepstakes models, with some jurisdictions considering new legislation to explicitly define and regulate their legality. While some states, like the aforementioned Mississippi, have moved to ban certain sweepstakes-based gaming formats, others continue to allow them under existing laws. What's next? The MLGCA has not disclosed whether further action will be taken against the 11 operators if they continue to serve Maryland customers. However, regulatory agencies often escalate enforcement through fines or legal proceedings if C&D letters are ignored. With no immediate compliance from the targeted companies, Maryland lawmakers and gaming officials may push for stricter measures to enforce compliance. As the legal landscape around online gaming continues to evolve, both operators and regulators face increasing pressure to clarify the boundaries between lawful gaming and unauthorized gambling. The coming months may provide greater insight into how Maryland and other states will handle the ongoing debate over the legality of sweepstakes-based gaming platforms and offshore sportsbooks.

Some sweepstakes operators have already ceased operations in Mississippi, including Bovada. But recently, Mississippi Senator Joey Fillingane has proposed a ban on more sweepstakes casino platforms. He introduced a bill that seeks to prohibit computerized online sweepstakes casinos, and along with this, the bill also aims to ban online racebooks and online sports pools. Online sweepstakes casino platforms are facing mounting scrutiny as State Senator Joey Fillingane of Mississippi initiates new legislation aimed at prohibiting these platforms across the state. Senator Fillingane has filed Senate Bill 2510 (SB 2510), a measure seeking to amend the Mississippi Code of 1972 in order to outlaw online, computerized, or interactive sweepstakes casinos. The proposed bill explicitly states that the operation or availability of these platforms within Mississippi will be deemed unlawful. Crackdown on online gambling In addition to banning sweepstakes casinos, SB 2510 also extends its prohibition to online racebooks as well as online sports pools, aiming for a comprehensive approach to digital gambling restrictions. "The offering for play or operating an online or interactive platform that offers for play such games within the State of Mississippi shall be deemed unlawful," the measure states. The bill proposes stringent penalties for individuals and businesses that have been found to violate the provisions. Those convicted of offering or operating online sweepstakes casino-style games could face felony charges, fines of as much as $100,000 for every violation, and as much as 10 years in prison. Additionally, the legislation allows for the "forfeiture of assets, rights, and privileges used in connection with violations." To ensure compliance, SB 2510 grants law enforcement the authority to dismantle and destroy any machines or devices associated with online sweepstakes operations. This ban extends to the riverboat gaming sector in Mississippi, further reinforcing the state's commitment to restricting these platforms. Ambiguities in the bill Despite the bill's aggressive stance, one of its main criticisms is its lack of clarity regarding the definition of 'online sweepstakes casino-style games.' The language within the measure fails to explicitly define what constitutes an online sweepstakes casino, leaving room for potential legal challenges. Mississippi Gaming Commission's Executive Director Jay McDaniel has voiced concerns, stating that while he believes sweepstakes casinos are unlawful, the bill does not provide a precise legal definition. SB 2510 marks the only gaming-related legislation introduced by Fillingane during the 2025 legislative session. The bill has been transferred to the Judiciary, Division B Committee for a more thorough review and discussion. Nationwide developments in sweepstakes regulation Mississippi is not the only state examining its stance on sweepstakes casinos. Assemblyman Clinton Calabrese of New Jersey recently proposed Bill A5196, which recommends designating gaming sites and sweepstakes casinos and as regulated entities. The New Jersey bill provides a clear definition of sweepstakes, outlining them as games that do not require an initial monetary investment to play but instead operate primarily with free currency. Players can also earn rewards either at random, through bundled purchases, or by completing specified tasks. Under Calabrese's proposal, sweepstakes operators would need to apply for a 'casino service industry enterprise license,' bringing them under the regulatory oversight of the state's gambling authorities. The bill is currently under review by the Assembly, Tourism, Gaming, and the Arts Committee. Future implications With SB 2510 under review, Mississippi lawmakers must decide whether to advance the legislation and how to address its definitional gaps. If it is passed, the bill would impose some of the harshest penalties on online sweepstakes casinos in the United States. As the debate moves on, stakeholders in the sweepstakes gaming industry as well gaming regulators will be closely tuned to how Mississippi proceeds with the proposed crackdown and whether other states will follow suit in tightening regulations on sweepstakes casinos.

The gaming regulator in Maryland has sent cease and desist letters to more than 10 sweepstakes operators in the state. According to a report from the Maryland Lottery and Gaming Control Agency, they have sent a total of 11 C&D letters to such gambling operators as Fortune Coins, McLuck Casino, Golden Hearts Games, Stake.US, Zula Casino, and more, and only six have responded - but they are still all operating within the state. The Maryland Lottery and Gaming Control Agency has intensified its efforts to combat illegal online gambling within the state by issuing a series of cease-and-desist letters to operators flouting state regulations. According to a recent report, the MLGCA has sent 11 such letters, but despite partial compliance, the operators continue to accept Maryland customers, prompting plans for further enforcement measures. Partial compliance, persistent violations Out of the 11 operators targeted, six have responded to the regulator's demands, including Golden Hearts Games, Fortune Coins, Zula Casino, McLuck Casino, Rebet (it just launched last year), and Stake.US. These operators primarily offer sweepstakes-based gambling options, a popular but controversial model that allows players to participate in games without direct monetary stakes, often bypassing traditional gambling laws. Despite their responses, all six continue operations in Maryland. Meanwhile, five operators - BetNow, BetUS, Everygame Sportsbook, BetAnySports, and SlotsandCasino - have yet to respond. These entities provide users with access to offshore betting, further complicating enforcement due to jurisdictional challenges. Heightened enforcement efforts Maryland's gaming regulator is doubling down on its actions. In addition to sending follow-up letters to non-compliant operators, the MLGCA plans to extend its crackdown to include payment processors facilitating transactions for these illegal platforms. This strategy aims to disrupt the financial infrastructure supporting unlicensed gambling activities. The surge in scrutiny reflects growing concerns nationwide about the proliferation of unlicensed online gambling operations, particularly sweepstakes models. These platforms often exploit legal gray areas, making them difficult to regulate. A nationwide crackdown on sweepstakes operators Maryland's actions align with a wider trend in the United States as gaming regulators address the challenges posed by unlicensed sweepstakes and gambling operators. In Michigan, the Michigan Gaming Control Board has issued similar cease-and-desist letters to LuckyLand Slots, Stake.US, and PredictionStrike. These platforms were accused of promoting unlicensed online lotteries and offering iGaming services without proper authorization. Following these warnings, all three operators exited Michigan's market. Other states have also taken steps to tighten oversight. In Nevada, for example, Global Poker recently informed its customers that its sweepstakes services would no longer be available in the state starting April 15 due to regulatory pressures. Similarly, last year, the Delaware Division of Gaming Enforcement and the Connecticut Department of Consumer Protection issued cease-and-desist orders to sweepstakes operator Virtual Gaming World. VGW was also ordered to cease its operations in Washington and Idaho, highlighting the nationwide pushback against unlicensed operators. Outlook for the future Maryland's actions reflect a growing awareness of the need for robust enforcement mechanisms to combat illegal online gambling. The rise of offshore operators and sweepstakes platforms has created new challenges for regulators, who must now navigate jurisdictional barriers and adapt to evolving technologies. The MLGCA's approach, which includes targeting financial enablers like payment processors, signals a more comprehensive strategy to address these challenges. However, as seen in other states, achieving compliance remains a complex task, requiring coordination between regulators and lawmakers. For Maryland residents, the crackdown serves as a reminder to verify the legitimacy of gambling platforms before participating. Licensed operators ensure consumer protection, fair play, and the integrity of gaming operations - standards often lacking in unregulated markets. As Maryland continues its enforcement efforts, the gaming industry will be watching closely to see whether these measures succeed in curbing illegal operations and setting a precedent for other states dealing with similar issues.

The newly-created trade group, the Social and Promotional Gaming Association, has just released its Code of Conduct to be followed by members to ensure safety and compliance in social gaming. This code of conduct is geared toward providing a foundation to make sure that social casino operators employ safe business practices and uphold the strictest regulatory standards in their operations. The Social and Promotional Gaming Association, a recently-formed prominent organization in the social gaming space, has introduced a comprehensive code of conduct for its operator members. This initiative aims to establish robust regulatory standards along with promoting safe business practices across the industry, particularly for operators offering social games, casinos, and promotional sweepstakes. The timing of the code's implementation coincides with the growing popularity of social casinos and sweepstakes games, which have become a billion-dollar industry in the United States. According to SPGA data, US players have spent more than $40 billion on the offerings of social casinos in the past decade, demonstrating the need for industry standards to protect players and maintain integrity in the market. Four pillars of the code of conduct The SPGA's code of conduct is built on four pillars designed to foster compliance, safety, and ethical practices among operators: Age verification Operators are required to ensure that real-money wagering is strictly limited to players aged 18 and older, safeguarding minors from engaging in such activities. Identity verification Proper verification protocols must be in place to authenticate the identities of players, reducing the risk of fraudulent activities. Geolocation verification Operators are mandated to implement geolocation technology to confirm players' locations and ensure compliance with jurisdictional regulations. Anti-money laundering (AML) policies The code requires operators to maintain stringent anti-money laundering policies to monitor transactions and prevent illicit financial activities. "The pillars of the SPGA code of conduct highlight the technology and processes already in place at most social sweeps operators to ensure that the millions of adults who enjoy these games do so in a safe and reliable environment," said Camilla Wright, an SPGA spokesperson from Red Knot Communications. She added that the standards set by the code go above and beyond the best practices typically associated with traditional social casinos. A unified effort to elevate industry standards The introduction of the code of conduct follows the SPGA's establishment in September 2024. Formed by a coalition of 10 founding members, the organization represents a diverse group of companies in the social gaming industry, including Blazesoft, 10 Ten Gaming, FSG Digital, Gold Coin Group, and High 5 Entertainment, among others. The SPGA's goal is to create a unified framework that not only promotes safety and compliance but also ensures that players have a positive and trustworthy gaming experience. However, the SPGA's membership notably excludes VGW, the biggest social casino operator in the world, which has opted not to join the association. While the reasons for this decision remain unclear, VGW's absence leaves a gap in the SPGA's representation of the broader industry. A step toward responsible gaming By implementing this code of conduct, the SPGA is taking a proactive stance to address the challenges and responsibilities associated with the rapid growth of social casinos and sweepstakes. The organization's emphasis on age, identity, and geolocation verification, along with anti-money laundering measures, highlights its commitment to player protection and industry integrity. With millions of Americans engaging in social gaming, the SPGA's efforts emphasize the importance of responsible practices and regulatory alignment to ensure the industry's continued growth in a safe and ethical manner.