The Montana ban on Sweepstakes Casinos is affecting the iGaming industry. Now, two more states may follow. Connecticut and Louisiana are taking legal steps. They want to ban sweepstakes casinos, too. If all goes as planned, these casinos will be banned in their current form.
In Connecticut, the House of Representatives has approved Bill 1235 after the Senate passed it unanimously 36:0. The bill aims to prevent sweepstakes casinos from doing business in the Constitution State but leaves out third-party lottery courier services for now.
Elsewhere, Louisiana follows a similar roadmap. The House of Representatives has just approved Bill 181 with a vote of 99:0. The bill, proposed by Senator Bass, is effectively a crackdown on operators that use a dual-currency payment system (aka sweepstakes) and now moves to Governor Jeff Landry’s office.
Heavy-Handed Penalties
If both bills get signed into law, Connecticut and Louisiana would become the fourth and fifth states to ban sweepstakes casinos, joining Idaho, Washington, and now Montana.
The bills criminalise both the operation and/or promotion of sweepstakes platforms. In Connecticut, violations are classified as a Class D felony, carrying penalties of up to $5,000 in fines and a potential five-year prison sentence. In Louisiana, violators could face fines of up to $100,000 and up to five years in prison.
However, not everyone is in favour of the bills. The Social and Promotional Gaming Association (SPGA) criticised the bill for allegedly confusing legal promotional games with illegal gambling. The association accused the bill of threatening innovation in the tech and marketing sectors.
Clearing the Air
The bills mark an end to a years-long skirmish against illegal gambling. In Connecticut, casino operator VGW Holdings was issued a cease-and-desist letter and ordered to leave the state. More recently, High5Games agreed to pay a $1.5 million settlement fee for providing casino-style games.
However, earlier this week, the casino’s B2B gaming licence was reinstated by the Department of Consumer Protection (DCP), though it is unlikely to resume operations.
On the other hand, Louisiana has focused its legislative muscle on outlawing Historical Horse Racing (HHR) machines. As a result of the recent ruling, operators like Churchill Downs will have to remove HHR machines from their off-track betting parlours.
Meanwhile, New York, New Jersey, Nevada, and Ohio are closely monitoring the situation.
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