All Social Casino news

Mere months after Connecticut brought criminal charges to its sweepstakes casino platform, the state of Connecticut has agreed to a settlement with High 5 Games. With the settlement, High 5 Games has agreed to pay a fine of almost $1.5 million, and the Connecticut Department of Consumer Protection has also agreed to reinstate High 5 Games' provider licence - but not for its sweepstakes casino, High 5 Casino. High 5 Games has regained its online gaming service provider license in Connecticut following a settlement with the state's Department of Consumer Protection. The agreement comes nearly three months after the company was hit with a summary suspension and criminal charges - the first of their kind in the US - over its operation of the unlicensed sweepstakes platform, High 5 Casino. As part of the settlement, High 5 Games will pay a $1.5 million fine and has agreed to discontinue High 5 Casino's availability across Connecticut. The settlement is not considered an admission of liability or a violation of law. While High 5 Games has been licensed in Connecticut since 2021 to supply content to regulated operators such as DraftKings and FanDuel, the company's separate sweepstakes platform, High 5 Casino, was operating without state approval. DCP investigation reveals sweeps violations The DCP's six-page Assurance of Voluntary Compliance, dated May 22, outlined how High 5 Games violated two state statutes by running the unlicensed casino for 25 months. During that time, more than 1,000 Connecticut customers deposited over $3.1 million into the platform. Though High 5 Games informed regulators in February of its intention to exit the state, investigators found that the casino remained accessible to users via simple geolocation workarounds. The platform's dual-currency model, a hallmark of sweepstakes operations, allowed users to collect free 'virtual coins' while also purchasing 'virtual cash' redeemable for real-money prizes - a structure that has drawn criticism from consumer protection advocates nationwide. Consumer restitution and compliance measures Under the settlement terms, High 5 Games will pay $643,000 in restitution to affected consumers and contribute nearly $800,000 toward consumer protection efforts, including education, complaint resolution, and enforcement. In addition to financial penalties, the company agreed to enhance geofencing technology to block users within Connecticut and to prevent access via VPNs and proxy servers. The agreement also prohibits the reintroduction of any sweepstakes platform in the state unless it complies with applicable licensing regulations. "This case is just one example of the hard work our gaming division does to ensure a fair, safe, and legal gaming market in Connecticut," said Commissioner Bryan Cafferelli. "We appreciate High 5 Games' cooperation in bringing this matter to a resolution." Wider legislative push against sweepstakes casinos Connecticut's action against High 5 Games has contributed to a growing national spotlight on sweepstakes casinos, which critics argue exploit regulatory loopholes. For instance, earlier last month, Montana became the first state to outright ban such platforms. In Louisiana, legislation aimed at closing the same loopholes has advanced to a third reading in the House of Representatives. Connecticut lawmakers are also responding swiftly. On 23 May, the Connecticut Senate unanimously passed a bill to prohibit unregulated sweepstakes casinos; the measure now awaits a vote in the House before the legislative session ends next week. The DCP's unprecedented move in March to bring criminal charges against a sweepstakes casino operator set a national precedent and sent a clear message to others in the sector. While High 5 Games has resumed its role as a licensed content supplier in Connecticut, the resolution of this case highlights growing regulatory momentum against unlicensed gambling operators. High 5 Games Chief Executive Officer Tony Singer has not publicly commented on the settlement. However, in a previous statement, the company said it was committed to cooperating with regulators and maintaining the integrity of its licenses.

Sweepstakes platform VGW – owner of LuckyLand Slots, Chumba Casino, and Global Poker – has announced that it is pulling out of New York, and it is a decision that it didn’t take lightly. Beginning on the 2nd of June, New York players will no longer be able to purchase Gold Coins, participate in contests, and the like. The remaining Sweeps Coins in players’ accounts can still be used until July 2, and on August 1, the redemption of Sweeps Coins will no longer be possible. In a significant move for the online social casino industry, VGW - the powerhouse behind Global Poker, Chumba Casino, and LuckyLand Slots - has announced it is phasing out its sweepstakes operations in New York. While the company will continue offering its free-to-play Gold Coin games, Sweeps Coin functionality is being systematically wound down over the coming months. Sweeps Coins to be discontinued starting June 2 VGW stated that New York players have already been notified of the decision via email. Beginning June 2, players will no longer be able to acquire Sweeps Coins through any means - including daily logins, contests, Gold Coin purchases, or mail-in entries. However, existing Sweeps Coin balances can still be used for gameplay until July 2. From July 2, gameplay using Sweeps Coins will be fully disabled, and any new mail-in requests will no longer be processed. By August 1, the ability to redeem any remaining Sweeps Coins for prizes will be permanently discontinued. A VGW spokesperson emphasized that players in New York will still have access to their favorite games using Gold Coins, which are entirely free-to-play and remain unaffected by the regulatory concerns driving the decision. “We are 100 percent focused on ensuring players are fully informed about the changes, and that this transition is as smooth and seamless as possible,” said the spokesperson. A decision made in the best interests of all stakeholders VGW acknowledged the significance of this decision, particularly for long-time players in New York. “We understand this is an adjustment after many years, and some players may be disappointed,” said the spokesperson. “This decision wasn’t taken lightly and was made at this time in the best interests of all our stakeholders.” This move reflects the company’s ongoing strategy to align with evolving expectations around regulatory compliance. In February, VGW raised its minimum player age from 18 to 21, citing a commitment to safe and responsible gaming. The New York exit follows that same philosophy. “VGW has operated in North America for more than a decade, creating not only great games, user experiences and entertainment but ensuring this is done safely, responsibly and at the highest level of standards,” the company said. Regulatory clouds prompt sweeps retreat VGW is not the first sweeps operator to leave the Empire State. Other major platforms, including High 5 Casino, McLuck, Hello Millions, and Funzpoints, have also exited the market in recent months. The trend coincides with increased legislative scrutiny. In March, Senator Joseph Addabbo introduced a bill to ban online sweepstakes casinos in New York. While that bill has seen little movement since April 30, and a duplicate Assembly Bill is only just entering committee on May 28, the industry has already begun to act preemptively. VGW is not a member of the Social and Promotional Games Association, which has advocated for regulatory clarity and held conversations with New York officials. However, the company is part of the newer Social Gaming Leadership Alliance, which shares similar goals around responsible growth and engagement with lawmakers. “As we’ve previously said, we acknowledge increased interest in our innovative industry that millions of Americans enjoy,” VGW said. “We are committed to respectful engagement on establishing modern, appropriate regulatory structures that benefit players and states alike.” Social gaming remains viable in New York More importantly, VGW’s Gold Coin-based social casino gaming will continue to be available to New York players. Unlike Sweeps Coins, which can be redeemed for real-world prizes, Gold Coins are purely for entertainment and fall outside the regulatory gray areas affecting sweepstakes promotions. Although New York has not yet enacted new laws restricting these platforms, VGW’s decision demonstrates a growing sense of caution and strategic foresight within the industry. For now, the departure of VGW - the largest and most recognized sweepstakes operator in the US - marks a pivotal moment. But one thing is clear: the industry is preparing for change, and VGW is intent on leading the transition with transparency and responsibility.

Well-known operators of social games have gathered together and formed a gaming alliance in response to the ongoing scrutiny into sweepstakes gaming operations. The group, called the Social Gaming Leadership Alliance, is set to push for more friendly rules and regulations in the social gaming industry. It is led by former congressman Jeff Duncan, and he is joined by major players like VGW (Virtual Gaming Worlds), Yellow Social Interactive, B-Two Operations, ARB Interactive, and PLAYSTUDIOS. A collective of prominent social gaming operators has come together to form the Social Gaming Leadership Alliance, a newly established advocacy group aimed at addressing mounting regulatory challenges and shaping a sustainable future for the industry. The coalition will be led by former US Congressman Jeff Duncan, and its founding members include Virtual Gaming Worlds (VGW), Yellow Social Interactive, PLAYSTUDIOS, B-Two Operations, and ARB Interactive, along with payment provider Nuvei. The SGLA marks a significant step for the social gaming industry as it seeks to better educate lawmakers, regulators, and the public about the nature of its platforms and practices. Promoting standards and clarifying misconceptions Laurence Escalante, Chief Executive Officer of VGW, emphasized the importance of unifying under one voice to promote transparency and industry best practices. “Online social gaming is a well-established, popular form of entertainment in North America, where we’ve operated for more than a decade,” said Escalante. “As a pioneer and market leader, we recognize the rising interest in our sector and our responsibility to both ensure the facts about our games, operations, and standards are understood and advocate for what we believe the appropriate industry frameworks should look like,” continued Escalante. The coalition aims to develop and promote clear, consistent industry standards to help lawmakers and regulators differentiate social gaming from other forms of online gambling. Core principles guide the SGLA's mission The SGLA will be grounded in four core principles: Free-to-play options - Ensuring players can enjoy games without spending money. Responsible Gaming - Promoting player well-being and sustainable gameplay practices. Player and platform protection - Upholding data privacy and ensuring secure, fair gameplay environments. Age Restrictions - Enforcing strict age verification processes to keep minors from accessing gaming content. By aligning on these values, the alliance hopes to present a united front when advocating for balanced regulations and preserving innovation in the sector. Response to mounting legal pressure The creation of the SGLA comes at a pivotal time for the social gaming industry, which has increasingly come under scrutiny from state regulators. VGW and several other sweepstakes operators have recently faced cease and desist orders in states such as Connecticut, Michigan, Idaho, Montana, Washington, and Nevada. In one high-profile development, VGW made the decision earlier this year to shut down its Global Poker brand in Nevada, citing increased regulatory pressure. Gold Coin sales were discontinued in January, and customer accounts were fully closed by mid-April. This climate of uncertainty has spurred leading operators to organize and present a coordinated effort to protect the viability of their businesses and the enjoyment of their users. Competing visions within the industry The SGLA’s formation also highlights a growing divergence within the social gaming sector. Another industry group, the Social and Promotional Gaming Association, was launched in September 2024 with a focus on opposing legislative efforts that seek to curtail sweepstakes and other social gaming models. While both groups aim to defend the social gaming space, their approaches and priorities appear to differ. The emergence of multiple advocacy organizations suggests an evolving and increasingly complex regulatory environment, as operators navigate differing interpretations of how social gaming should be governed. The SGLA plans to begin an outreach campaign targeting lawmakers, regulatory agencies, the media, and the general public, advocating for informed and balanced policy decisions that allow the industry to flourish while protecting consumers. With seasoned leadership and backing from influential stakeholders, the alliance hopes to shape the narrative around social gaming and prevent overly restrictive laws that could stifle innovation.

Governor Greg Gianforte of Montana has signed the bill seeking to ban sweepstakes casino operators in the state, making Montana the first-ever US state that officially prohibits sweepstakes casinos online. While Senate Bill 555 doesn't specifically state sweepstakes casinos, the bill seeks to ban casino operators that make use of dual currencies in gambling. Other states have introduced similar bills, but Montana is the very first state to sign it into law. Montana has officially become the first state in the nation to outlaw online sweepstakes casinos, following the signing of Senate Bill 555 by Governor Greg Gianforte. The new legislation, which goes into effect on October 1, prohibits internet gambling platforms that use dual-currency models - commonly associated with sweepstakes-style online casinos. While the bill does not explicitly mention "sweepstakes," it was crafted to target operators that allow users to place bets using one currency and redeem prizes in another - a hallmark of many online sweepstakes platforms. According to the bill's language, any online gambling operation that "knowingly transmits or receives gambling information" and "makes payouts of any form of currency" falls under the prohibition. Strict penalties for violators Under the new law, violators could face severe penalties, including felony charges, fines of as much as $50,000, and prison sentences of up to 10 years. The legislation underscores Montana's intent to draw a hard line against emerging forms of online gambling that operate in legal gray areas, especially those offering casino-style experiences under the guise of sweepstakes or promotional gaming. The House and Senate in Montana both passed SB 555 in April, setting the stage for Governor Gianforte's signature this week. While several states have introduced similar legislation, Montana is the first to see such a bill successfully enacted. Industry group denounces the bill's ambiguity The Social and Promotional Games Association, a trade group representing sweepstakes operators, has sharply criticized the new law. In a statement, an SPGA spokesperson argued that the bill's broad and ambiguous language could have far-reaching consequences beyond its intended targets. "Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans," the spokesperson said. "It's a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices." The SPGA further warned that the vague phrasing might inadvertently criminalize free-to-play sweepstakes and other promotional contests that do not involve real-money gambling. Broader legislative efforts struggle elsewhere Montana's move comes as other states deal with how to regulate or prohibit online sweepstakes casinos. Earlier in the year, the Senate of Mississippi became the first legislative body to pass a bill aimed at banning such platforms. However, that legislation ultimately failed in a conference committee amid broader discussions about legalizing online sports betting. Similarly, attempts to pass comparable bans in Florida, Arkansas, and Maryland also fell short. Despite the setbacks, several other states currently have active bills under consideration, reflecting growing concern over the legality and consumer protection issues surrounding online sweepstakes gambling. Montana's new law may serve as a catalyst for other states considering action against sweepstakes casinos. As these platforms continue to gain popularity - often marketed as legal alternatives to traditional online gambling - state lawmakers face increasing pressure to define and regulate their operations. The enactment of SB 555 marks a significant moment in the ongoing debate over how best to address the evolving landscape of online gambling. Whether other states follow Montana's lead remains to be seen, but the move has certainly reignited national attention on the legality and ethics of sweepstakes-based gaming.

In recent times, a lot of states in the US have initiated bans for sweepstakes casino platforms. While some states' bill proposals are still ongoing, some have already been rejected. We take a look at bills that are still active and find out what's happening with these bills in some key states, like New Jersey, New York, Connecticut, and more. In a year marked by legislative scrutiny of online sweepstakes platforms, US state lawmakers have introduced a wave of bills seeking to regulate or ban these dual-currency gaming operators. While several proposals have failed to gain traction and died in session, others remain active and are advancing through statehouses. The legislative movement stems from concerns around the legality, consumer protections, and perceived overlap between sweepstakes models and online gambling. However, recent trends show growing resistance to sweeping bans, particularly in states prioritizing innovation and economic freedom. Early setbacks in the south and mid-Atlantic Some states took swift action early in the legislative year, only to see efforts fizzle amid wider gaming debates. In Mississippi, for example, the Senate passed a bill banning sweepstakes operators. Yet the measure was ultimately derailed in a conference committee, tangled in the state's larger conversation around expanding online sports betting. Similarly, Florida's attempt to prohibit sweepstakes platforms ended in quiet withdrawal earlier this month. That move was welcomed by industry advocates like the Social and Promotional Games Association. "The defeat of these bills continues a clear national trend," said an SPGA spokesperson. "Lawmakers across the country are rejecting these anti-innovation, anti-business efforts that attempt to dictate what games American adults can play on their phones." The spokesperson also pointed to Maryland and Arkansas, where similar legislation failed to pass, indicating growing skepticism toward restrictive bills. A state-by-state look: where the action continues Despite setbacks in some regions, several states still have active legislation that could reshape the landscape for online sweepstakes platforms. Connecticut: Senate yet to vote In Connecticut, SB 1235 was introduced in February to prohibit both real and simulated online casino gaming or sports betting conducted via sweepstakes platforms. The bill has cleared several committee hurdles and is now awaiting a vote on the Senate floor. With the state's legislative session running until June 4, there is still time for further movement. Louisiana: unanimous Senate support Louisiana has made notable progress. The Senate passed SB 181 with a unanimous 39 - 0 vote. This bill seeks to expand the definition of 'gambling by computer' to include sweepstakes operators using dual-currency systems. It now moves to the House Committee on Administration of Criminal Justice. The legislative session continues until June 12, giving proponents a narrow window to finalize the bill. New Jersey: slow but active In New Jersey, Assembly Bill 5447 gained momentum after a dormant period. The Assembly's Tourism, Gaming and Arts Committee advanced the measure last week. A5447 targets platforms offering virtual currencies that yield real cash prizes, and it still requires approval from additional committees. Given the legislature remains in session until December 31, lawmakers have time to refine and debate the proposal. New York: Addabbo's bill advances New York legislators have also taken a strong interest. Senate Bill S5935, led by gaming advocate Sen. Joseph Addabbo, has already reached the Senate floor. A companion House bill, AB6745, remains in committee. Addabbo's bill includes an amendment granting the New York State Gaming Commission more authority to define what constitutes a sweepstakes system - potentially allowing for nuanced regulation over outright bans. New York's session ends on June 12. Montana: awaiting the signature of the Governor In Montana, lawmakers have already passed SB555, sending it to Governor Greg Gianforte's desk for approval. The bill avoids using the term 'sweepstakes' directly but amends gambling definitions to include any platform that transmits gambling information and allows wagers or payouts in any currency. Notably, it preserves legal standing for free-to-play casino models. A mixed national picture As legislative sessions near their end in several states, the fate of online sweepstakes bills remains uncertain. While many proposals have stalled or died, active measures in states like Louisiana, Connecticut, and New York suggest the debate is far from over. Industry advocates continue to push back against what they see as restrictive, anti-consumer laws. Meanwhile, state lawmakers are weighing how best to regulate a fast-evolving digital gaming sector without stifling innovation. The next few weeks will be critical in determining which states move toward prohibition - and which choose a more measured regulatory path.

Popular Scandinavian gaming provider Play'n GO has vowed never to supply its games to sweepstakes casinos, and it further confirms its commitment to promoting only regulated and licensed gaming markets worldwide. Swedish gaming powerhouse Play'n GO has made a strong and definitive statement regarding its business practices, as it vows never to supply its industry-leading portfolio of casino games to sweepstakes casinos. Johan Törnqvist, the company's Chief Executive Officer and Co-Founder, made the declaration, further demonstrating Play'n GO's unwavering commitment to operating strictly within regulated and licensed gaming markets worldwide. "Sweepstakes casinos do not operate inside a regulated framework, and that's not something we support," said Törnqvist. "Our commitment to regulated markets is absolute. We will never supply our games to sweepstakes casinos." The ever-growing regulatory scrutiny on sweepstakes casinos Sweepstakes casinos, often operating in legal grey areas by circumventing gambling laws through promotional and virtual currency models, have come under increasing scrutiny - especially across the United States. These platforms operate outside conventional regulatory frameworks, raising serious concerns among policymakers, regulators, and responsible gaming advocates. Shawn Fluharty, Play'n GO's Head of Government Affairs, voiced strong opposition to these unregulated entities. "Sweepstakes casinos threaten the regulated market model that many of us in the industry have worked so hard to achieve," he said. "That model protects players first and foremost and delivers much-needed revenue to jurisdictions." Fluharty further warned of long-term consequences for businesses engaging with unregulated markets: "Regulators have long memories. Anyone doing business with sweepstakes casinos today will find it very difficult to do business in a future regulated market." A history of ethical leadership This announcement is consistent with Play'n GO's longstanding position as a responsible and forward-thinking industry leader. The company has repeatedly taken proactive steps to align with evolving regulatory standards and promote industry integrity. For instance, Play'n GO was notably the first supplier to rule out the production of 'bonus buy' games - game titles that allow players to purchase features directly - long before such games were officially banned by Dutch and UK regulators. This stand has since become a benchmark in regulatory compliance and ethical game design, as several other jurisdictions consider similar restrictions. Backed by industry partners and policy advocates The company's recent strategic partnership with Tipico, a major German casino operator, demonstrates Play'n GO's commitment to clean, regulated markets. Through this alliance and partnership, Tipico has chosen to prioritize Play'n GO's games on its platforms while removing titles from providers that operate in both regulated and black markets. Chief Commercial Officer at Play'n GO, Magnus Olsson, acknowledged the financial implications of such decisions but emphasized the importance of long-term integrity. "It's no secret that with this decision - much like with our stance towards Bonus Buy games - we have been, and continue to leave a lot of money on the table," said Olsson. "But everyone in the industry has a choice about what kind of industry we want. We want to see a fully regulated and sustainable industry that protects players, promotes innovation, and ensures that we actually have an industry in the future." A call to action for industry peers Play'n GO's bold move serves as both a commitment and a challenge to others in the gaming industry. With increasing momentum toward tighter regulation and more ethical business models, the company is urging fellow suppliers and operators to take a stand for sustainability and player protection. "We are starting to see both regulators and operators, such as with Tipico in Germany, recognize that the future of the industry is through regulation," said Olsson. "It's time for other suppliers to do their part too - and I'm delighted to see Play'n GO leading the way once again."

Sweepstakes casino operators continue to take a hit in the US as more and more states seek to prohibit their operations - and this now includes a lawsuit involving VGW, the entity behind sweepstakes casinos like Chumba Casino, Luckyland, and Global Poker. In the lawsuit, a third defendant was brought in last month: Ryan Seacrest, the popular American Idol emcee and TV personality, who is also a Chumba Casino spokesperson. A popular California sweepstakes operator is facing heightened legal scrutiny - this time with a celebrity twist. Television host and personality Ryan Seacrest has been named as a defendant in an amended lawsuit against VGW, the parent company of well-known sweepstakes sites including Chumba Casino, Luckyland Casino, and Global Poker. The lawsuit, brought by California resident Aubrey Carillo, was originally recorded in October of 2024 in Riverside County Superior Court. Initially focused solely on VGW, the suit was revised last month to include Seacrest, who serves as a prominent spokesperson for Chumba Casino. The revised complaint significantly expanded in scope, growing from 16 to 71 pages, and deepened its legal arguments against both the operator and its celebrity endorser. Suit alleges illegal gambling under state law At the core of Carillo's claim is the allegation that VGW's sweepstakes-based gaming products operate as illicit online casinos within the state of California. The lawsuit draws a direct comparison between VGW's platforms and the internet cafes that proliferated in the early 2000s. These cafes offered phone cards or paid internet access along with bonus credits that could be used to play slot-like games - a model that California lawmakers later deemed unlawful gambling. Carillo argues that the model used by VGW's platforms is functionally identical, contending that the purchase of virtual currency or other entry methods does not eliminate the element of 'consideration,' a key component in determining what constitutes gambling under state law. The complaint claims VGW has effectively revived the outlawed business model in digital form. Celebrity endorsement draws fire The revised complaint singles out Ryan Seacrest for allegedly helping to legitimize and promote an unlawful business through his celebrity endorsement. In a pointed statement within the filing, Carillo accuses Seacrest of leveraging his fame irresponsibly: "Someone this blessed in life does not need to hurt people for more money, but Defendant Seacrest does that by serving as the official celebrity endorser for ChumbaCasino.com. Defendant Seacrest promotes illegal gambling and in so doing, contributes to the rise of online gambling addiction among adults and adolescents." The suit claims that Seacrest's influence and promotion of Chumba Casino contribute to a growing trend of online gambling addiction, particularly among vulnerable populations. Challenge to binding arbitration In addition to targeting VGW and Seacrest, the lawsuit disputes the enforceability of the sites' terms and conditions - specifically, their use of mandatory arbitration clauses. Carillo argues that because the underlying business model is potentially illegal, the user agreements and any clauses within them, including arbitration, are therefore unenforceable - and void - under California law. This aspect of the suit could have wider implications as mandatory arbitration is a common legal shield for many online platforms facing user complaints. Part of a legal trend While Seacrest is the very first celebrity to be named in such a lawsuit, he is not the first third party to be pulled into the growing legal battles surrounding sweepstakes gaming platforms. Other ongoing lawsuits have targeted payment processors like Worldpay and major technology companies such as Google and Apple, alleging that these firms facilitate access to illegal gambling. To date, no court has issued a final ruling holding these companies liable. However, most cases - including Carillo's - remain active and could set significant legal precedents in the coming months. As the pressure mounts, the outcome of this lawsuit may influence how sweepstakes-based gaming is treated nationwide - and it could also determine the liability of public figures and tech platforms involved in their promotion.

The state of Louisiana has unanimously approved a bill proposal aimed at expressly prohibiting sweepstakes casinos from operating in the state. In a sweeping 39 to 0 vote, the LA Senate not only banned sweepstakes casino gaming - it also sought to penalize all affiliates, investors, operators, and suppliers - in short, anyone involved in the sweepstakes casino industry. In a powerful and unanimous 39 - 0 vote on Tuesday, the Louisiana Senate passed Senate Bill 181, legislation aimed at outlawing sweepstakes gambling across the state. The bill introduces some of the harshest penalties seen to date, signaling a strong bipartisan stance against the unregulated and controversial gaming model. Harsh penalties and swift implementation If signed into law, SB 181 would take effect on the 1st of August, introducing steep consequences for those involved in sweepstakes gambling. Operators, influencers, affiliates, investors, and suppliers could face fines of up to $100,000 per violation and prison sentences of up to five years. Unlike licensed online casinos, sweepstakes gambling platforms allow users to wager with 'free' coins. However, users often have the option to purchase additional coins using real money or cryptocurrency. These coins can then be exchanged for cash or prizes - a structure that lawmakers argue constitutes illegal gambling under the guise of promotional gaming. A national trend: more states join the crackdown Louisiana's legislation comes during a week of accelerated momentum against sweepstakes gambling. Connecticut and New York also took decisive steps toward banning the practice, with similar bills passing key legislative hurdles - each garnering unanimous support. Connecticut's SB 1235 was introduced in February and has progressed steadily. It passed its very first committee vote unanimously in March and, just last week, cleared the Senate Judiciary Committee with a 37 - 0 vote. The bill is now under review by the state's Office of Legislative Research and Office of Fiscal Analysis, with findings expected on May 5. Meanwhile, New York took action on Wednesday when the Assembly Racing and Wagering Committee passed Bill A06745, aimed at banning online sweepstakes gaming in the Empire State. It follows Senate Bill 5935, which had already received a unanimous nod from the Senate Racing, Gaming, and Wagering Commission in March. Currently, nearly a dozen states have either introduced or passed similar measures to curb sweepstakes gambling. The rising concern centers on the lack of oversight, as these platforms often operate without licenses, potentially exposing consumers to unfair practices and lack of recourse. Industry pushback: sweepstakes defenders warn of overreach Despite the legislative momentum, the sweepstakes industry is not backing down without a fight. The Social and Promotional Games Association, which represents stakeholders in the space, has voiced concerns about the sweeping nature of the new laws. The SPGA warns that these bills could have unintended consequences, potentially criminalizing legitimate promotional activities used across industries - from fast food giveaways to app incentives and airline loyalty programs. Promotional sweepstakes have been a cornerstone of marketing for decades, the association argues. We worry that vague language in some of these bills could target innocuous loyalty programs and promotional tools, the SPGA continued. Nevertheless, the association faces an uphill battle. The sheer number of unanimous legislative votes suggests a growing bipartisan consensus that the current sweepstakes gambling model poses too great a regulatory and consumer protection risk. As states ramp up efforts to rein in sweepstakes gambling, 2025 could mark a turning point in the broader conversation around online gaming regulation in the US. While legitimate, licensed online casinos continue to gain ground under strict oversight, the once-blurry lines separating gaming and gambling are being redrawn with increasing clarity. Unless the tide turns, the wave of anti-sweepstakes legislation could soon close the doors on one of the most controversial corners of online gambling.

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.