Maryland is starting the fight against Sweepstake Casinos

Maryland is taking action to block sweepstakes casinos for several reasons:

1. Legal concerns: The state views these operations as potentially illegal, with the Maryland Lottery and Gaming Control Agency issuing cease-and-desist letters to 12 online casinos and sportsbooks, including several sweepstakes casinos.
2. Consumer protection: There are concerns about the lack of age and identity verification, weak responsible gaming measures, and insufficient consumer protection in sweepstakes casinos.
3. Revenue loss: The state does not benefit from tax revenue generated by these unregulated operators, which diverts players from legal, regulated markets.
4. Regulatory oversight: Sweepstakes casinos operate outside the state’s regulatory framework, making it difficult to ensure fair play and responsible gambling practices.
5. Legislative action: A new bill, Senate Bill 860, has been introduced to explicitly ban sweepstakes casinos in Maryland. The bill would criminalize both operating an online sweepstakes site and supplying services to such operators.
6. Competition with legal operators: These unregulated sites compete with state-licensed operators, potentially undermining the regulated gambling market.

If passed, the proposed legislation would impose severe penalties on violators, including fines ranging from $10,000 to $100,000 and up to three years in prison. The bill also targets suppliers, affiliates, and payment processors who work with sweepstakes casinos, risking their licenses and facing potential criminal charges.

Sweepstake casino’s that will close in Maryland
– Mega Bonanza
– Mc Luck
– Spree
– Sportzino
– HelloMillions
– Jackpota

All have excited the market from the 21st of February.

The main arguments against sweepstakes casinos in Maryland are:

1. Legal concerns: Maryland’s Lottery and Gaming Control Agency has labeled these operations as potentially illegal, issuing cease-and-desist letters to several sweepstakes casinos.
2. Lack of regulation: Sweepstakes casinos operate outside the state’s regulatory framework, making it difficult to ensure fair play and responsible gambling practices.
3. Consumer protection issues: There are concerns about weak responsible gaming measures, lack of age and identity verification, and insufficient consumer protection in sweepstakes casinos.
4. Revenue loss: The state does not benefit from tax revenue generated by these unregulated operators, which diverts players from legal, regulated markets.
5. Competition with legal operators: These unregulated sites compete with state-licensed operators, potentially undermining the regulated gambling market.
6. Potential for fraud: The lack of proper age and identity verification makes these platforms susceptible to fraudulent activities.
7. Impact on land-based casinos: There are concerns that online sweepstakes casinos could cannibalize revenue from brick-and-mortar casinos, potentially leading to job losses.
8. Difficulty in enforcement: Despite cease-and-desist letters, many operators have refused to block access to Maryland residents, claiming their services are compliant with state law.

These arguments have led to legislative action, with Senate Bill 860 proposing to explicitly ban sweepstakes casinos in Maryland and impose severe penalties on violators and their suppliers

Letters Send

According to the information provided, six sweepstakes casinos have responded to the cease and desist letters issued by the Maryland Lottery and Gaming Control Agency:

1. Golden Hearts
2. Zula
3. McLuck (also referred to as MC Luck)
4. REBET
5. Fortune Coins
6. StakeUS (also known as Stake.US)

It’s important to note that while these operators have responded to the letters, none of them have agreed to block access to Maryland residents as of the most recent reports. The Maryland Lottery and Gaming Control Agency is sending follow-up letters to these operators and initial letters to payment processors, demanding that they block access to what the state has deemed illegal websites.

What are your state rules

Several states have taken different approaches to regulating sweepstakes casinos:

1. Washington and Michigan: These states have explicitly banned sweepstakes casinos. Washington’s Gambling Commission states that no law or rule authorizes this type of activity.
2. Idaho: While not illegal, Idaho prohibits players from receiving cash prizes, limiting participation to gold coin play only.
3. Florida and New York: These states have implemented stricter regulations, setting prize limits and voiding any winnings over $5,000.
4. Connecticut, Delaware, New Jersey, Pennsylvania, Rhode Island, and West Virginia: Some sweepstakes casinos, such as High 5 Casino and Stake.us, have voluntarily exited these states where real-money online casinos are legal.
5. Nevada, Kentucky, and Wyoming: Some sweepstakes casinos have chosen not to operate in these states due to legal uncertainties.
6. California, Texas, and Florida: These states allow sweepstakes casinos to operate under specific regulations ensuring compliance with local gambling laws and promotional standards.
7. Indiana: Oversight of sweepstakes is placed with the state attorney general’s office, while the General Assembly is responsible for legalizing gaming forms.

Overall, the regulatory landscape for sweepstakes casinos varies significantly across states, with some embracing them under certain conditions, others imposing strict limitations, and a few banning them outright.