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Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioLawmakers in Tennessee and Hawaii both took steps towards explicitly banning sweepstakes casinos on Tuesday. In both states, lawmakers advanced legislation through Senate committees.
In Tennessee, the Senate Commerce and Labor Committee approved SB2136 in an 8-0 vote. The legislation has an accompanying bill in the House, but it has yet to come to a vote since its introduction last month.
The bill’s sponsor, Sen. Ferrell Haile, said he aims to tackle “growing concerns about illegal online gambling in our state.” His office has collaborated with the state’s gambling regulator, the Sports Wagering Council, and Attorney General Jonathan Skrmetti to create legislation that will allow stricter enforcement against operators.
Increased Action Against Sweepstakes Casinos
The bill states that the “operation, conducting, or commercial promoting of online sweepstakes games and other forms of online or app-based gambling are unlawful and are offenses against the public health, safety, and welfare of this state.”
It defines an online sweepstakes game as a platform that utilizes a virtual-currency system allowing players to engage in “gambling of any kind, including, but not limited to, casino-style gaming such as slot machines, video poker, table games, lottery games, bingo, or unlicensed sports wagering,” which can later be exchanged for “a prize, award, cash, or cash equivalent.”
AG Skrmetti has already been active in targeting sweepstakes casinos. His office sent 40 cease-and-desist letters to companies last year, leading many platforms to withdraw from the state.
Skrmetti stated, “Our Office was glad to chase these shady operations out of Tennessee and will keep working to protect Tennesseans from illegal gambling.”
If enacted, the bill will grant his office more power to drive out any companies still accepting users in the Volunteer State.
Hawaii Bill Primarily Targets Gambling Machines
Elsewhere, lawmakers in Hawaii also recommended passage of Senate Bill 3281. The bill was backed in a 4-0 vote in the Senate Judiciary Committee on Tuesday.
The legislation is less focused on online sweepstakes casinos than on general illegal gambling in the state. It would increase penalties for the possession or promotion of illegal electronic gambling devices.
It defines an illegal electronic gambling device as “any machine; table; device commonly known as a fish game, fish table, or fishing game; sweepstakes gaming machine; or a similar electronic gambling device that awards or allows the exchange of points, credits, tokens, prizes, merchandise, gift cards, cash equivalents, or anything of value based in whole or in part upon chance or a combination of chance and skill.”
In its current form, this could apply to sweepstakes casinos, but lawmakers may seek to add more specific text to include online illegal gambling.
The bill has been backed by the Nation of Hawaii. Vice President Brandon Makaʻawaʻawa signed off on a letter supporting the legislation as “a practical step that supports enforcement in addressing unlawful activity in a measured and consistent manner.”
The Nation is a group advocating for an independent Hawaii. It says its “mission is to restore, maintain, and preserve the sophisticated religion, language, and culture of the Native Hawaiian people.”
Tennessee and Hawaii are two of 11 states with active legislation targeting sweepstakes casinos. Follow ‘The Pulse’ on sweepstakes casinos for more updates on this ever-changing industry.
