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Read Full BioSweepstakes casino operator Modo Casino is launching a new system to allow players in California and other states to continue playing on its platform despite an impending ban.
The company emailed users to inform them of its new Modo Stars system, which will launch on January 1. This is the same day that a ban on sweepstakes casinos will come into force in California.
The new law makes it illegal for anyone to “knowingly and willfully” engage in, promote, or facilitate sweepstakes casinos that use dual-currency systems. The dual-currency format typically uses “gold coins” for entertainment and “sweeps coins” redeemable for cash prizes.
Modo Stars To Bypass Ban?
The impending ban in California has seen many operators exit the state. However, Modo has devised a new system that attempts to bypass the law.
It continues to offer players the ability to play with Gold Coins, which are free to play. Now, however, they will have a chance to turn those coins into Modo Stars, which can then be redeemed for other prizes.
In the email to users, it states that “Modo Stars are our new in-game rewards you earn just by playing with Gold Coins.” It then adds that Modo Stars may be converted, writing, “As your balance grows, you’ll be able to redeem Modo Stars for Gold Coin Packages, and even more fun rewards in the future!”
The company did not clearly state whether the ‘fun rewards’ would include cash prizes. This would seemingly be prohibited under the new law in California. Bill AB891 prohibits platforms from allowing users to play simulated gambling games in exchange for “a prize or award, or cash or cash equivalents”.
Even if users were not able to exchange Modo Stars directly for cash, the reward of gaining the prize for playing with Gold Coins could also conceivably fall outside the law.
System To Go Live In All States
Modo said the Modo Stars system will go live in all states. Currently, it only allows users to play with Gold Coins, rather than Sweeps Coins, in 16 states. This includes New York, which also passed a ban on dual-currency gambling earlier this month.
New York’s bill defines an “online sweepstakes game” as any internet or mobile game that uses a dual-currency system and offers players a chance to win cash prizes while simulating casino-style gameplay, such as slots, table games, poker, bingo, lottery formats, or sports wagering.
Given the terms of the New York and California bills, it seems likely Modo Stars may be redeemed for alternative prizes, such as hotel stays, cruises, buffets, or show and concert tickets.
Other operators employ similar systems, including Light & Wonder’s social casino apps and the Yuhaaviatam of San Manuel Nation’s social casino Play.Yamaava. The Yuhaaviatam of the San Manuel Nation was the chief tribal backer of the bill in California.
Other platforms may also implement new systems as more and more states clamp down on the sweepstakes model. In total, six states have passed laws banning the platforms this year. In addition to New York and California, lawmakers in Connecticut, Montana, New Jersey, and Nevada also enacted bills to outlaw sweepstakes casinos.
