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Senate Bill 1404 moves on to the Senate fiscal committee, and it seeks to impose stronger penalties for offering and participating in illegal gambling in the state as well as a ban on sweepstakes gaming. A Florida Senate committee has taken another step toward tightening the state's laws against illegal gambling and online sports betting. Senator Corey Simon's bill, SB 1404, received a favorable report this week from the Senate Appropriations Committee on Agriculture, Environment, and General Government, moving it one step closer to becoming law. The bill, which now advances to the Senate Fiscal Policy Committee, seeks to impose harsher penalties on those who engage in or facilitate illegal gambling operations, while also banning sweepstakes gaming - a rapidly growing form of online gambling that lawmakers argue exploits loopholes in current regulations. "Without more substantial penalties, illegal gambling will continue to spread, siphoning money from Florida," Senator Simon said during the committee hearing. He continued, this bill is about protecting consumers, upholding the integrity of our gaming laws, and ensuring that gaming in Florida is conducted lawfully and responsibly. Cracking down on illegal online gambling and sports betting SB 1404 targets a wide array of illegal gambling practices, specifically prohibiting internet gambling and online sports betting outside the framework established by the Seminole Tribe's exclusive compact with the state. This move effectively outlaws sweepstakes-style gaming websites and mobile applications that simulate casino experiences - a trend that has seen increased popularity in recent years. Under the bill, 'internet gambling' is defined as playing any game based on chance - including simulated video poker, slot machines, or table games - for money or anything of value via the internet. Similarly, online sports betting is prohibited if it involves wagering on contests of speed, skill, endurance, or power, whether human or animal, unless conducted through the Seminole Tribe's authorized platform. Violations of the bill would be classified as third-degree felonies, which could carry significant legal consequences including prison time and substantial fines. Tribal gaming and DFS remain untouched Importantly, the legislation does not impact the Seminole Tribe's rights under their gaming compact with the state. The tribe retains exclusive rights to offer sports betting and certain forms of iGaming in Florida. Simon's bill also steers clear of the contentious issue of daily fantasy sports (DFS), which remains under consideration in a separate piece of legislation currently making its way through the legislature. By excluding DFS from SB 1404, lawmakers appear to be taking a cautious, measured approach - seeking to tackle unregulated and illegal gaming while allowing more time for deliberation on the evolving DFS landscape. A growing concern The advancement of SB 1404 reflects growing concern among Florida lawmakers about the proliferation of unauthorized gambling platforms that operate outside state oversight. Proponents argue that these platforms not only divert revenue from legal, regulated gaming entities but also expose consumers to fraud, lack of recourse, and addictive behaviors without appropriate safeguards. Sweepstakes gaming, in particular, has drawn criticism for mimicking the experience of traditional casino games while evading regulation by claiming to offer 'promotional' or 'free' gameplay with the chance of winning real-world prizes. Critics say such systems amount to de facto gambling. The next steps With favorable reports from two Senate committees already secured, SB 1404 now heads to the Senate Fiscal Policy Committee, where it will undergo further scrutiny. If approved, the bill will proceed to a full Senate vote before potentially moving to the House of Representatives. If signed into law, the legislation would go into effect on the 1st of October, 2025. As the debate over gambling continues to evolve in Florida and across the country, Simon's bill represents a firm stand by state lawmakers to uphold strict gaming standards and curb what they see as an unchecked expansion of illegal and unregulated gambling platforms.

The Pennsylvania Gaming Control Board has become the latest state to issue cease and desist orders to a total of 18 sweepstakes casino platforms. The platforms consist mostly of offshore entities, but some are also based in the United States. All 18 recipients of the C&D orders have complied, but counsels state that the definition of gambling in Pennsylvania needs to be amended, as it is easy for sweepstakes operators to circumvent the law and find loopholes. The Pennsylvania Gaming Control Board is stepping up efforts to combat the rise of unlicensed sweepstakes casinos operating in the state. During a recent Gaming Oversight Committee hearing, the PGCB disclosed that it has issued 18 C&D letters to sweepstakes-style online casinos that have been conducting business in Pennsylvania without proper authorization. These platforms, often referred to as "sweeps" sites, offer social casino-style games that use a sweepstakes model to award prizes. While they technically operate using virtual currency and skirt federal gambling definitions, many state regulators, including those in Pennsylvania, consider them a growing threat to the regulated gaming market. A challenge to enforce According to PGCB officials, most of the companies targeted are based offshore, though several have US origins - and some were even found to be conducting business within Pennsylvania's borders. Despite their activities, none of the 18 companies issued cease-and-desist letters held interactive gaming licenses from the PGCB. Cyrus Pitre, Chief Enforcement Counsel, described the situation as a 'whack-a-mole' challenge. "As soon as one operation is shut down, another appears to take its place," he said. Fortunately, all 18 operators contacted so far have complied with the cease-and-desist orders. However, the PGCB's enforcement capabilities are limited. Since these platforms do not fall under the traditional definition of gambling as outlined in Pennsylvania law, the agency lacks the authority to pursue legal action or impose penalties on the companies behind them. It can only issue cease-and-desist warnings. That regulatory gap is now under increasing scrutiny. Chief Counsel Steve Cook emphasized the need to revise the legal language within Pennsylvania's Gaming Act to provide clarity and close existing loopholes that allow sweepstakes casinos to operate unchecked. "Unfortunately, in the area of interactive gaming, we are significantly hamstrung by the specific language of our enabling statute," Cook said. He cited Chapter 13B of the Gaming Act, which includes conflicting sections that simultaneously appear to ban unlicensed online gaming while also limiting PGCB oversight to licensed entities. Concerns about sweepstakes casino operators regarding responsible gaming and more Cook also referenced a December 2023 ruling by the Commonwealth Court, which determined that the current definitions do not extend PGCB authority to unlicensed gambling operations - a decision that significantly impacts the board's regulatory reach. The court held that this language wasn't nonsensical - which I believe it is, Cook said. It essentially reinforces the idea that the PGCB only has control over entities it licenses, even when those outside the system may be operating illegally. Both Cook and Pitre expressed concerns about the unchecked nature of sweepstakes casinos, noting that unlike regulated platforms, these sites are not required to undergo fairness testing, verify users' ages, or provide responsible gaming tools. That lack of oversight, they warned, exposes consumers to potential harm and undermines Pennsylvania's legal gaming industry. These platforms are not subject to any consumer protection measures, Cook added. They don't play by the same rules, and that makes them a real risk. Russ Diamond, Chairman of the Gaming Oversight Committee, acknowledged the dilemma facing the PGCB and affirmed his commitment to updating the law. He expressed support for legislative action that not only addresses current challenges but also anticipates future developments in the rapidly evolving online gambling space. "We have to do it in a way that not just takes care of what's going on today," Diamond said, "but also what could be coming in a year, five years, or even a decade from now." With support building among lawmakers, it appears that the PGCB may soon gain clearer legal tools to regulate - or shut down - unlicensed sweepstakes casinos operating in Pennsylvania. Until then, the board remains vigilant, using its limited powers to preserve the integrity of the state's regulated gaming environment.

The Delaware Division of Gaming Enforcement has finally been successful in ousting VGW from operating in the state. The Delaware DGE actually issued a cease and desist order in 2023, with no result until this month. But it was only during legal proceedings conducted last August of 2024 that VGW was made aware that the C&D order was sent. Now, as of the 2nd of April, Delaware residents can no longer access and play on the sites, which include Chumba, Global Poker, and Luckyland. After years of scrutiny and regulatory ambiguity, the Delaware Division of Gaming Enforcement has officially forced Virtual Gaming Worlds (VGW) to cease operations in the state. The agency announced in a press release that VGW's sweepstakes-based gaming platforms - including Luckyland Slots, Chumba Casino, and Global Poker - are considered illegal online casinos under Delaware law. Effective April 2, residents of Delaware are no longer permitted to access or play on any VGW-operated sites. The decision marks the culmination of a prolonged investigation and legal tug-of-war, though the timeline behind the enforcement reveals a more complex story than the press release suggests. A cease and desist long ignored While the DDGE's statement gave the impression of recent enforcement, VGW was first issued a cease and desist order more than two years ago. According to prior confirmation from the DDGE, the regulatory agency initially sent the cease and desist on the 23rd of February, 2023. However, VGW did not acknowledge or act on the order until August of 2024, when it came to light during an unrelated legal proceeding. This delay in enforcement - over a year between the issuance of the notice and VGW's formal recognition of it - has raised questions about communication and compliance practices between the operator and regulatory bodies. The DDGE did not disclose the reason for the enforcement delay in its latest announcement. VGW has long maintained a strong presence in Delaware, both operationally and legally. The company's own terms and conditions mandate that all legal disputes be handled through the US District Court for the District of Delaware, making the state a focal point for ongoing and past litigation against the operator. Numerous lawsuits have been filed in Delaware targeting VGW's business model, which operates using a sweepstakes system rather than traditional online casino mechanics. Critics argue that the distinction is largely semantic and that VGW's games function as de facto online gambling, skirting the regulatory frameworks in place in many states. VGW's patchwork US presence VGW has now officially withdrawn from Delaware, joining a list of states that includes Idaho, Connecticut, Montana, Michigan, Washington, and Nevada. Despite these exits, VGW remains active in several other jurisdictions, even as competitors adopt a more conservative stance on state-by-state legality. For instance, some sweepstakes gaming companies have exited all states where online casinos are legalized and regulated - including Pennsylvania and New Jersey - opting to avoid regulatory complications altogether. A group of such operators have also recently exited New York, citing increased regulatory pressure. Yet VGW has opted to pursue its own course. Unlike many of its competitors, it has not joined the Social and Promotional Games Association or SPGA, a trade group aiming to promote transparency and establish voluntary compliance standards for sweepstakes and promotional gaming operators. VGW's absence from the SPGA demonstrates its unique, and at times contentious, position in the evolving online gaming landscape in the US. The company has already updated its platform terms and conditions to reflect the Delaware ban, preventing users with Delaware IP addresses or account affiliations from accessing their products. It remains unclear whether VGW will face further legal consequences for its extended period of non-compliance or whether additional states will follow Delaware's lead in formally challenging the legality of its operations. The DDGE's enforcement action sends a clear message to online gaming operators that Delaware is prepared to take firm action against platforms operating outside of its regulatory framework.

The Delaware Division of Gaming Enforcement has just issued a cease and desist order against VGW Luckyland, Inc. for operating an illegal online gaming platform. The officials from Delaware reportedly found that VGW Luckyland had misrepresented its offerings as promotional sweepstakes when, in fact, it enabled players to purchase coins for its casino games. The Delaware Division of Gaming Enforcement, in coordination with the Delaware State Lottery, has issued a cease-and-desist order against VGW Luckyland, Inc., an affiliate of VGW Holdings Ltd. from Australia, following an extensive investigation into illegal online gambling activity targeting Delaware residents. The DGE determined that VGW Luckyland had been misrepresenting its services as promotional sweepstakes while, in reality, offering casino-style games that allowed players to purchase virtual coins and win real-money prizes. This practice, the investigation concluded, constitutes illegal online gaming under Delaware law. Effective on the 2nd of April, 2025, residents of Delaware are no longer permitted to access or participate in any of VGW Luckyland's online gaming platforms. According to state officials, the operation violated multiple legal frameworks, including the Delaware Penal Code, the Delaware Constitution, and the Delaware Gaming Competitiveness Act of 2012. This case demonstrates the growing concern over unlicensed online gaming platforms posing as legal sweepstakes, said a spokesperson for the Delaware Lottery. Such operations are not only illegal but pose significant risks to consumers. Public safety and consumer protection at risk Delaware officials are raising red flags over the broader implications of unauthorized and unregulated gaming platforms. According to the DGE, these operations are particularly dangerous as they often lack basic consumer protection measures. Players engaging with such websites may face issues like difficulty withdrawing funds, lack of customer support, and susceptibility to cybercrime. Unregulated gaming sites present a wide range of dangers, including identity theft, fraud, and the exposure of sensitive personal and financial information, the DGE emphasized in a public statement. Without oversight, these platforms are a prime target for cybercriminals. The DGE further warned that some illegal gaming sites go as far as mimicking the branding of legitimate Delaware casinos. These deceptive tactics include the use of similar-sounding names, matching color schemes and logos, and even registering lookalike URLs. Such mimicry can easily mislead consumers into thinking they are playing on a secure, regulated platform. Economic impact and public awareness In addition to putting consumers at risk, illegal gaming platforms rob the state of substantial tax revenue. Regulated gaming operations contribute to Delaware's economy, funding public services and ensuring a safe, monitored environment for players. Unlicensed operators, by contrast, sidestep these responsibilities while exploiting local players. Officials are urging Delaware residents to remain vigilant and only participate in online gaming through authorized channels. Just because a website or app is easily accessible does not mean it is legal. Residents are advised to verify the legitimacy of gaming platforms through the official Delaware Lottery website at https://www.delottery.com. About the Delaware Division of Gaming Enforcement The Delaware Division of Gaming Enforcement was established under House Bill Number 310 during the 145th General Assembly. Operating under the supervision of Homeland Security and the Secretary of Safety, the DGE holds exclusive jurisdiction over criminal gaming offenses occurring within licensed video lottery facilities and those relating to the operations of the Delaware Lottery. The Division plays a key role in maintaining public trust by investigating the background and qualifications of gaming license applicants, enforcing gaming laws, and supporting the Delaware Lottery in regulating lottery and gaming activities. This enforcement action reaffirms Delaware's commitment to legal, responsible, and transparent gaming practices, the DGE concluded. Their top priority is to protect residents and maintain the integrity of the state's gaming environment.

In the latest stance by several states against online sweepstakes casino gaming, the newest state to join the bandwagon is Louisiana. In proposed bill SB 181, Senator Adam Bass sought to prohibit the operation and promotion of online sweepstakes gaming. The bill states that any offerings deemed similar to casino-style gaming, sports betting, or lottery gaming would amount to illegal gambling. Louisiana has become the latest battleground in the growing crackdown on online sweepstakes casinos, as lawmakers weigh legislation that would effectively outlaw such platforms across the state. A bill prohibiting sweepstakes casino gaming On April 4, State Senator Adam Bass introduced Senate Bill 181 (SB 181), a proposal aimed at banning the operation, promotion, and facilitation of online sweepstakes gaming - a model that has flourished in legal grey areas across the US. The bill is currently awaiting review in the Committee on Judiciary B. SB 181 targets what it terms "gambling by computer," broadly defined as any game, contest, or promotion conducted online that employs a dual-currency payment system - commonly seen in sweepstakes casinos - and offers players the opportunity to win prizes, cash, or any cash equivalent. This includes simulations of casino-style games, lotteries, or sports betting, regardless of whether users are required to make a purchase to participate. The strict terms of the legislation The legislation would impose strict penalties for violations. Individuals found guilty of operating or promoting such activities could face a minimum fine of $10,000 per circumstance and as much as five years in prison. Additionally, violators would be considered in breach of Louisiana's Deceptive and Unfair Trade Practices Act, exposing them to civil lawsuits and further penalties. Notably, the bill doesn't only target operators of sweepstakes platforms. It extends liability to a wide range of associated parties - including game developers, software providers, geolocation services, affiliate marketers, advertisers, and media outlets - essentially anyone who plays a role in enabling or promoting sweepstakes-style gambling. The Department of Public Safety and Corrections and the Louisiana Gaming Control Board would be granted authority to investigate potential infractions and enforce the law through mechanisms such as cease-and-desist letters. Louisiana joins the ever-growing bandwagon Louisiana's move follows a wave of similar actions across the country. In 2025 alone, New Jersey, Maryland, New York, Connecticut, and Illinois have introduced bills targeting online sweepstakes casinos. In Mississippi, a high-profile bill passed both chambers before stalling over last-minute amendments related to sports betting. While lawmakers argue these measures are necessary to protect consumers from unregulated and potentially predatory practices, opponents claim the bills go too far and could harm legitimate businesses. The Social and Promotional Games Association swiftly condemned SB 181 in a strongly worded statement, arguing the proposal "recklessly misclassifies legitimate sweepstakes as illegal gambling." The SPGA stated, "This misguided legislation endangers lawful businesses and sends a chilling message to investors, jeopardising Louisiana's burgeoning tech sector. For decades, companies - from fast-food chains to app developers - have utilised sweepstakes as legal promotional tools. Even more troubling, SB 181's overly broad definitions could unintentionally criminalize loyalty and rewards programs run by some of the most respected brands in the country." Sweepstakes platforms' free to play model are not a threat The SPGA also noted that social sweepstakes platforms typically operate on a free-to-play basis, emphasizing that most users engage with the platforms without spending money. "The vast majority of users never spend a dime," the association added, asserting that such games do not pose a competitive threat to Louisiana's regulated real-money gaming sector. As lawmakers in Louisiana continue to deliberate SB 181, the outcome could significantly influence how other states proceed with similar legislation. The debate highlights the broader national struggle to define the boundary between innovative digital promotions and unlicensed gambling - a line that continues to blur in the rapidly evolving online gaming landscape.

A player from California has filed a lawsuit against sweepstakes casino operator Sweepsteaks Limited, which operates Stake.us. Dennis Boyle has allegedly lost money with the sweepstakes casino, and he is a gambling addict who says that Stake.us provides real-money online gambling that pretends to be 'free gaming.' California's online gambling landscape is under scrutiny as Stake, a prominent gambling brand, faces a lawsuit in a federal court. The case, originally filed on the 14th of February in a state court, was later remanded to a federal court. The plaintiff, Dennis Boyle, a resident from California and former gambling addict, alleges that Stake’s social casino and sweepstakes platform, Stake.us, operates as an illegal gambling website. Allegations of illegal gambling According to court documents, Boyle has filed the lawsuit against Sweepsteaks Limited, the entity behind Stake.us, claiming that the company falsely markets real-money wagering as free gaming. The suit argues that Stake's operations violate the civil code of California by engaging in unlawful gambling and unfair business practices. The complaint states, "Because social casinos operate as if they are not subject to gambling regulations, they do not comply with the regulations that govern the operation of slot machines or other gambling." Boyle contends that Stake.us functions illegally in California, a state that prohibits online gambling offerings such as slot machines, roulette, and blackjack. He further claims that the sweepstakes platform's digital currencies, Stake Cash as well as Gold Coins, serve as proxies for real-money betting, fostering gambling addiction as they entice players to continue playing. "A user playing promotional games with Stake Cash is gambling in the purest sense - they are wagering something of value (Stake Cash) on a random event with the hope and intent of winning more Stake Cash than wagered," the complaint reads. Boyle takes his accusations a step further, comparing Stake's business model to the opioid crisis in America. He argues that the platform's monetization of addiction reflects similar exploitative practices used in the pharmaceutical industry, which has faced numerous legal battles over the past decade. Allegations of unfair business practices Beyond the claims of unlawful gambling, Boyle's lawsuit also accuses Stake of engaging in unfair business practices. A major point of contention is the company's play-through requirement to acquire Stake Cash. The complaint highlights that the platform enforces a 300% wagering requirement on promotional giveaways and welcome bonuses, compelling players to bet large amounts before being able to redeem their winnings. The lawsuit claims that this requirement is deliberately designed to keep users engaged and continuously wagering with the platform. Additionally, Boyle accuses Stake of manipulating casino results rather than offering a fair and randomized gaming experience. The suit alleges that Stake's social casino system maximizes addiction by tailoring players' wins and losses to keep players hooked, ultimately preventing them from experiencing a fair gambling environment. Although Boyle's individual claims do not go over $75,000, his primary goal is to obtain public injunctive relief. The lawsuit seeks to shut down Stake.us in California, preventing the company from continuing what Boyle describes as unlawful activities that pose a risk to the general public. Boyle's legal history against social casinos This is not Boyle's first lawsuit against an online gambling brand. Earlier this year, he took legal action against social sweepstakes casino Pulsz and its parent company, Yellow Social Interactive, filing a lawsuit in Orange County. The suit accuses Pulsz of operating an offshore criminal enterprise and using misleading terms such as 'sweepstakes' and 'social gaming' to attract users. Boyle's complaint against Pulsz highlights concerns about the company's responsible gaming standards, which suggest that players should not seek treatment for gambling addiction unless their symptoms are severe and have persisted for at least 12 months. He further stated that Pulsz's digital currencies serve as a front for real-money gambling, operating in a manner similar to Stake's virtual cash system. The Pulsz lawsuit also alleges that the platform fails to randomize its social casino results, much like Stake, and provides users with access to online slot games that are banned across California. Boyle is seeking a public injunction against Pulsz to halt its operations within the state. Stake has yet to publicly respond to the allegations. However, the outcome of this legal battle could have significant implications for the online gambling industry, particularly for platforms that market themselves as free-to-play while still incorporating real-money wagering mechanisms.

Several sweepstakes casino operators have exited from New York, with some operators sending emails to customers ahead of the proposed crackdown by legislators. Sweepstakes operators like PlayFame, SportsMillions, Hello Millions, Rolling Riches, and SpinBlitz are now starting to withdraw from the New York gaming market starting on March 25. In a major shake-up for the online sweepstakes casino industry, multiple operators are pulling out of New York following the introduction of SB S9226, which aims to explicitly ban online sweepstakes casinos in New York. Emails announcing the closures surfaced on March 25, revealing that platforms such as SportsMillions, Hello Millions, PlayFame, Rolling Riches, and SpinBlitz are winding down services for New York residents. Phased exit strategies unveiled Reddit users have reported getting almost identical email notices from several sweepstakes casino operators, each detailing a phased withdrawal strategy that culminates in full account closures come April. There was one such user, u/Ok-Pineapple5625, who shared their disappointment in the r/ChumbaCasino subreddit, stating: "Well, it was fun while it lasted, New York. Got other sweep site emails as well. Looks like I will be headed back to the land casinos. Will save $$ anyways." This wave of withdrawals signals the industry's acknowledgment of the shifting regulatory landscape in New York, where lawmakers are intensifying efforts to curtail online sweepstakes gaming. PlayFame and Rolling Riches among latest exits In an official communication to its users, PlayFame has announced that it would cease service access for players in New York as of the 30th of April, 2025. The company cited updates to its Terms of Service and a revision of "prohibited territories" as reasons for the exit. Starting April 3, players will no longer be able to get Gold Coin packages, while prize redemptions and sweepstakes gameplay will remain available until the 29th of April. After that, all accounts will be automatically closed, and any remaining balances forfeited. PlayFame wrote in its message to affected users: "We are disappointed to advise that as of April 30, players in New York will no longer have access to our social gaming services." Similarly, Rolling Riches Casino has confirmed its departure from the New York market. A notice posted by Reddit user u/Zestyclose-Leader-73 outlined the company's exit strategy, citing "regulatory changes" as the primary reason. The platform ceased new player purchases and registrations on March 20 and plans to close all New York-based accounts by April 20. Any unredeemed Sweepstakes Coins will be forfeited after this deadline. "It's with a heavy heart that we must inform you that... Rolling Riches services in New York are coming to an end," the company stated in its email to users. What lies ahead for players? With these abrupt departures, the industry's outlook in New York appears increasingly uncertain, and operators seem to be acknowledging that negotiations with lawmakers may yield little room for compromise. In response, some platforms are telling New York players that they should redeem their prizes as well as close their accounts before their respective deadlines in April. For many New Yorkers, this mass exodus of sweepstakes casinos may lead to a shift toward traditional, land-based casinos. However, some players are exploring alternative online options, including offshore casinos. "This will just push everyone to offshore crypto casinos," stated Reddit user u/Bluberryrain in one discussion thread. Unlike sweepstakes operators, offshore crypto casinos operate outside US regulatory frameworks, often providing limited consumer protections. The potential rise of these unregulated platforms could pose significant challenges for state authorities and players as they navigate a legal grey area. A defining moment for sweepstakes gaming The unfolding situation in New York could set a precedent for other states considering similar regulatory measures. The battle over the legality of sweepstakes gaming is intensifying, and New York has emerged as a critical battleground in this ongoing debate. As the industry braces for further legislative scrutiny, the long-term future of online sweepstakes casinos in the US remains uncertain. For now, New York players must decide whether to transition to land-based gaming, seek alternative platforms, or exit the scene altogether.

There may be several states that want to ban sweepstakes casino gaming altogether, and Connecticut is the latest state to join the bandwagon. The bill, SB 1235, was filed with the Legislation Commissioner's Office after it got a favorable vote, and it has several clauses - including one clause that makes owning an illegal gambling enterprise a felony punishable up to five years in jail. The Connecticut Senate's General Law Committee has taken a firm stance against sweepstakes gaming, approving a bill that would outlaw the practice in the state. Senate Bill 1235 (SB 1235) was passed unanimously by a 22 - 0 vote and has since been filed with the Legislation Commissioner's Office after a joint favorable action. The bill, which includes multiple gambling-related provisions, aims to prohibit "certain persons conducting sweepstakes or promotional drawings" from allowing or facilitating simulated or real online sports wagering or casino gaming. This legislation, proposed by the Connecticut Department of Consumer Protection, is designed to close regulatory loopholes and strengthen enforcement against unregulated gambling practices. If enacted, the bill would classify operating an unlicensed and illegal gambling enterprise as a Class D felony, carrying a penalty of up to five years in jail and a fine of $5,000. Crackdown on sweepstakes gaming Connecticut is among several jurisdictions in the US looking to make sweepstakes-based online gambling illegal. While the state already permits regulated online casinos, lawmakers are seeking to prevent sweepstakes gaming platforms from operating within its borders. Unlike traditional online casinos, sweepstakes operators allow users to game for free but offer the option to purchase additional coins, which can be exchanged for real money and prizes. This model has caught the attention of regulators, particularly in states with legal and taxed iGaming industries, where lawmakers argue that untaxed sweepstakes businesses divert revenue from licensed operators. Other states, including New Jersey, Maryland, Mississippi, and New York, have also introduced legislation to prohibit sweepstakes gaming. Additional gambling regulations in SB 1235 Beyond targeting sweepstakes gaming, SB 1235 proposes several other regulatory measures. These include: Lottery ticket sales restrictions: The bill seeks to prohibit the resale of lottery tickets and restrict ticket courier services. Changes to collegiate sports betting: Under current Connecticut law, in-state college teams, such as the University of Connecticut (UConn), can only be bet on while in postseason play. If passed, the bill suggests modifying these provisions. Expansion of wagering on combat sports: The bill includes language authorizing betting on certain boxing and MMA events. Advertising restrictions: It seeks to limit certain types of gambling-related advertisements. Parallel legislative efforts The General Law Committee has also approved SB 1464, a separate bill that would allow the state to join multijurisdictional poker compacts. This move could expand online poker opportunities by permitting shared player pools with other states where online poker is legal. Additionally, SB 1464 addresses errors in sports betting and establishes maximum wager limits for sports betting online. Meanwhile, in the Connecticut House of Representatives, the General Law Committee has approved House Bill 5269 (HB 5269). This legislation aims to prevent gaming entities from offering financial incentives designed to induce gambling behavior. Implications for the gambling industry in Connecticut If SB 1235 is enacted, it would reinforce Connecticut's commitment to regulated online gaming and consumer protection while closing loopholes that allow unregulated sweepstakes operators to thrive. With the bill's strong bipartisan support, it now moves forward in the legislative process, where further discussions and potential amendments will determine its final form. As more states take action against sweepstakes gaming, industry stakeholders will be watching Connecticut's legislative developments. The outcome of this bill could have wider implications for the online gambling landscape nationwide, particularly when it comes to sweepstakes casino gaming.

In what seems like good news for sweepstakes casino operators, a lawsuit filed in New Jersey has been dropped by complainant Julian Bargo. The lawsuit was aimed not only at sweepstakes casino operators such as McLuck, High 5 Casino, CrownCoins Casino, and Wow Vegas, but also at Apple and Google, which were all accused of being in violation of the Racketeer Influenced and Corrupt Organizations Act. In a significant legal development, a lawsuit against major tech companies Apple and Google, along with several sweepstakes casino operators, has been voluntarily dismissed in New Jersey. The lawsuit, filed by Julian Bargo in November of 2024, accused the defendants of violating the Racketeer Influenced and Corrupt Organizations (the RICO) Act by hosting and facilitating sweepstakes gambling applications. However, without explanation, attorney Gary Meyers and Bargo filed a notice of voluntary dismissal last Thursday, which was subsequently signed by Judge Madeline Cox Arceo. Lawsuit dropped without explanation The lawsuit named several sweepstakes casinos, including Wow Vegas, High 5 Casino, CrownCoins Casino, and McLuck. However, the most notable defendants were Apple and Google, which were accused of enabling illegal gambling by hosting sweepstakes casino apps on their platforms and processing payments through Apple Pay and Google Pay. Bargo's complaint alleged that he had lost more than $1,000 while gambling on these applications, which operate in a legal grey area in the United States. Despite his claims, he and his legal team abruptly withdrew the case without disclosing any reason for their decision. The voluntary dismissal leaves many questions unanswered regarding the legal standing of sweepstakes casinos and their association with major tech platforms. Legal challenges facing sweepstakes casinos Sweepstakes casinos have been facing increasing scrutiny across the US. While not outright illegal in most states, they operate in a legally ambiguous space. These platforms use a dual-currency system: 'gold coins,' which hold no monetary value, and 'sweeps coins,' which players can redeem for cash or prizes. While users can play for free, they also have the option to purchase gold coins, which come with bonus sweeps coins - allowing them to participate in games with real-money rewards. Despite this model, lawmakers in multiple states are attempting to crack down on sweepstakes casinos. Currently, legislation seeking to ban online sweepstakes is being considered in seven states: Florida, Connecticut, Mississippi, New Jersey, Maryland, Nevada, and New York. Connecticut has taken one of the most aggressive stances against sweepstakes gambling, recently charging High 5 Casino with 1,065 criminal counts for allegedly conducting illegal gaming operations within the state. In response, High 5 Games issued a statement asserting its commitment to regulatory compliance: "High 5 Games has always upheld the highest regulatory standards and remains committed to compliance across all jurisdictions in which we operate. Throughout our 30-year history as an established gaming brand in the US, we have worked closely with regulators to ensure responsible and transparent business practices, offering an experience to our loyal business partners that is both enjoyable and safe. We are committed to cooperating with Connecticut regulators to resolve this matter and maintain the integrity of our gaming licenses." New Jersey's changing approach to sweepstakes casinos Meanwhile, New Jersey has been at the center of the sweepstakes casino debate. In January of 2025, Assemblyman Clinton Calabrese introduced a bill to regulate sweepstakes gaming, suggesting that oversight and legal clarity were the best ways to address concerns surrounding these platforms. However, in a surprising turn, Calabrese reversed course last week and proposed a new bill seeking to ban sweepstakes casinos entirely. This shifting stand demonstrates the ongoing uncertainty surrounding the industry. While some lawmakers aim to bring the sector under regulatory control, others advocate for outright prohibition, citing concerns over consumer protection and potential ties to unregulated gambling practices. A win for Google and Apple For Google and Apple, the dismissal of Bargo's lawsuit eliminates a potential legal headache. The lawsuit alleged that by hosting sweepstakes casino applications and processing in-app transactions, the tech giants were complicit in illegal gambling operations under the RICO Act. If the case had moved forward, it could have set a precedent for holding digital platforms accountable for the activities of third-party applications. With the lawsuit dropped, Apple and Google are off the hook - for now. However, the broader debate over sweepstakes casinos and their legality remains unresolved, with multiple state legislatures actively considering new regulations or bans.

The New York Senate Racing, Gaming, and Wagering committee officially advanced a bill, S5935, which moves to prohibit sweepstakes gaming in the state. Even though the bill isn't scheduled for a hearing yet, the passing of it by the New York Senate committee is a vital step in the fight to make social and sweepstakes casinos and sportsbooks illegal in NY. A bill that would ban sweepstakes gaming in New York took a significant step forward on Tuesday, receiving a favorable vote in the Senate Racing, Gaming, and Wagering Committee. The committee unanimously passed Senate Bill S5935, moving it to the Senate floor for further consideration. The legislation, introduced by committee chairman Senator Joseph Addabbo, aims to crack down on controversial online social casinos and sportsbooks that operate under a sweepstakes model. Although the bill has not yet been scheduled for a hearing on the Senate floor, this advancement marks an important step in the push to make such platforms illegal in the Empire State. Targeting online sweepstakes gaming The proposed legislation, titled S5935, seeks to "prohibit online sweepstakes games and revenue from illegal markets" while establishing enforcement measures and penalties. The bill targets gaming platforms that use a "dual-currency" system, which has drawn scrutiny from multiple states. Sweepstakes casinos operate similarly to traditional online gaming platforms, offering slots, table games, and even sports betting. But while players can access some virtual coins for free, they can also purchase additional currency with real money. Winnings from these games can often be exchanged for cash or prizes, creating a grey area in gambling regulation. The bill not only aims to outlaw sweepstakes gaming but also holds payment processors, financial institutions, geolocation providers, media affiliates, and gaming content providers accountable for supporting such operations. Under S5935, violations could result in fines ranging from $10,000 to $100,000, along with the potential loss of a gaming license. The gaming commission, law enforcement agencies, and the attorney general's office would be responsible for enforcing the law if the bill passes. Growing legislative support A companion bill has also been introduced in the New York State Assembly by the chair of the Assembly's Racing, Gaming, and Wagering Committee, Carrie Woerner. However, that bill has not yet progressed out of committee. Senator Addabbo has been vocal about the need for regulatory action against these online platforms. The bill states that online sweepstakes casinos have become widely available in New York through personal computers and mobile devices, often making them accessible to minors. Lawmakers argue that these operations sidestep consumer protection measures, responsible gaming requirements, and anti-money laundering regulations. Additionally, because they are unregulated and untaxed, they pose unfair competition to New York's legal and highly regulated gambling industry. Nationwide crackdown on sweepstakes casinos New York is not alone in its efforts to ban sweepstakes gaming. Several other states have recently introduced similar measures. In Maryland, lawmakers are even closer to outlawing online sweepstakes casinos and sportsbooks. The state's Senate recently passed a bill that is now being considered in the House of Representatives. If approved, Maryland would become the first state to officially ban this form of gaming. New Jersey has also entered the debate, with Assemblyman Clinton Calabrese filing a bill to prohibit sweepstakes casinos. This move comes less than two months after Calabrese had initially proposed legalizing them. Meanwhile, lawmakers in Mississippi and Connecticut have also introduced legislation aimed at shutting down these platforms. As more states take action against sweepstakes gaming, the industry will be watching closely to see if New York follows through with a full ban. If S5935 advances to the Senate floor and passes, it could have a lasting impact on the future of online gaming regulations in the state and beyond.

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 DCP.Gaming@ct.gov. 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.