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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.