Lawmakers in Tennessee and Maryland have been examining legislation this week that would explicitly ban sweepstakes casinos.
In Tennessee, a House committee approved a bill that will now move to a final committee before a full vote. Meanwhile, in Maryland, a Senate committee held a hearing, but did not vote, on a bill that has already passed the House.
Tennessee House Committee Approves Ban
Tennessee’s House State & Local Government Committee approved HB 1885 by a 21-0 vote, with one representative abstaining.
The House Departments & Agencies Subcommittee unanimously passed the bill last month. It will now move to the Finance, Ways & Means Committee. If approved there, it will go to a full vote on the House floor.
The legislation 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.”
If it passes, violators could receive a fine of up to $15,000 per violation.
Maryland Senate Hearing on HB 1226
In Maryland, the Senate Budget and Taxation Committee held a hearing on HB 1226. The House approved the legislation with little opposition on March 23 in a 135-1 vote.
The bill similarly defines sweepstakes games as “a game, contest, or promotion that:
(1) Utilizes a dual–currency system of payment allowing the player to exchange the currency for any prize, award, cash or cash equivalents, or chance to win any prize, award, cash or cash equivalents; and
(2) Simulates any form of gambling, including:
(3) Casino–style games, including slot machines, video poker, and table games such as blackjack, roulette, craps, and poker.”
The committee had not yet tabled a vote on the bill. A similar piece of legislation was introduced in the Senate in January, but it also did not progress after an initial hearing.
The state has made moves to clamp down on sweepstakes casinos. The City of Baltimore filed a lawsuit against five major operators last month, alleging the platforms are already violating the law.
The bill would increase potential penalties, with offenders facing up to 3 years in prison. The Maryland Lottery and Gaming Control Agency supports the stricter rules.
It has previously sent cease-and-desist letters to operators, including VGW. However, the company, which runs Chumba Casino, Luckyland Slots, and Global Poker, failed to comply. This led to a second round of letters being sent in November. But the platforms still appear to be accessible in the state.
Most Platforms Block Access in Maryland & Tennessee
A total of 33 operators, including some of those sued by Baltimore (High 5, Stake, Pulsz, and McLuck), have exited Maryland.
Tennessee has also largely driven out operators, with the state’s Attorney General sending a wave of cease-and-desist letters last year. Yet, some remain active.
If the bills pass in both states, it would further empower the gambling regulators to take action against any companies that continue to operate.
