Bills restricting sweepstakes in Louisiana and Connecticut move closer to approval for legality
Lawmakers in Louisiana and Connecticut have made significant strides in prohibiting dual-currency sweepstakes gaming within their states.
The Louisiana Senate recently approved Senate Bill 181, which aims to ban online sweepstakes casinos and dual-currency gaming systems. The approved bill was then sent to the House, where it was recently moved to the floor for further discussions. If passed, it will mark a watershed moment for the industry, as Louisiana is set to become the second state (after Montana) to ban such establishments.
Meanwhile, the Connecticut Senate passed Senate Bill 1235 unanimously, targeting the unlicensed operation of dual-currency sweepstakes gaming. The bill is now awaiting its turn in the House for further deliberation.
The legislative push to tighten regulations on dual-currency sweepstakes gaming comes amidst growing concerns over its legality and potential misuse. Both states are following a broader trend of increased scrutiny on the industry as a whole.
In an unprecedented move, the sweepstakes giant VGW Holdings Limited announced it will be withdrawing its gaming operations from New York this summer. The decision comes as several states are contemplating a legal ban on dual-currency sweepstakes. The company, which operates popular social sweepstakes brands such as Chumba Casino, Luckyland Slots, and Global Poker, will slowly phase out its services in New York over the next few months.
The companies engaged in dual-currency sweepstakes gaming will face strict penalties in Louisiana, should the bill pass. The Louisiana Gaming Control Board will have the authority to impose civil fines ranging from $10,000 to $100,000 on operators, promoters, media affiliates, or providers found to be violating the law.
Amidst this regulatory crackdown, the future of dual-currency sweepstakes gaming remains uncertain. As legislators and industry stakeholders navigate this evolving landscape, the effects of tightened regulations will undoubtedly reshape the gaming industry in these states.
- The Louisiana Gaming Control Board, if given the authority, could impose significant fines on stakeholders, such as operators, promoters, media affiliates, or providers, found to be violating the law in the sports betting and policy-and-legislation context, as a result of the proposed bill banning dual-currency sweepstakes gaming.
- As both Louisiana and Connecticut push for tighter regulations on dual-currency sweepstakes games, the future of such businesses could be linked to the outcome of politics and policy-and-legislation, especially considering the recent ban on such establishments in Montana.
- With the legal uncertainty surrounding dual-currency sweepstakes gaming, companies like VGW Holdings Limited, which operates popular brands in the general-news realm such as Chumba Casino, Luckyland Slots, and Global Poker, may face losses due to withdrawing their gaming operations from states like New York, where stricter laws and policies could potentially target their wagering activities.
