Sweepstakes gaming is still under threat as two new bills have been introduced to crack down on illegal iGaming.
Senate Bill 555 in Montana seeks to revise state gambling laws, focusing on internet gaming and associated technology. In Arkansas, House Bill 1861 would clarify the regulation of online gambling in the state, only authorizing licensed casinos to offer services.
Both bills are related to the sweepstakes industry, and if they become law, services could be shut down in each state. The pieces of legislation join a growing list of bills in other states that focus on sweepstakes gaming services as a real gambling activity.
HB 1861 recommended for study
House Bill 1861, filed in late March, is sponsored by Representative Matt Duffield and Senator Dave Wallace, with 20 additional co-sponsors. The proposal has already moved through the House Judiciary Committee and is now recommended for study in the Interim by the Committee on Judiciary Committee-House.
If approved, the legislation would move quickly as it includes an emergency clause for immediate enactment if signed by the governor. The measure would allow the three licensed casinos in Arkansas to offer online casino gaming.
This includes the Saracen Casino Resort, Oaklawn Racing Casino Resort, and the Southland Casino Resort. The casinos could feature blackjack, slots, and roulette games via their sports betting apps.
The measure targets offshore entities and unlicensed operators, including sweepstakes sites. Based on the language of HB 1861, any operator offering illegal gambling services in Arkansas would face a felony charge.
If the measure passes, sweepstakes operators would be forced to stop services in the state or face serious punishment.
Senate Bill 555 expands the definition of gambling in Montana
At the same time, Senator Vince Ricci has introduced Senate Bill 555 in Montana, proposing revisions to the state’s gambling laws. The legislation focuses on internet gambling and the technologies associated with such services.
The measure would expand the definition of gambling, clarify prohibitions, and update criminal penalties for violations. Under SB 555, the term internet gambling would be broadened to include online casinos and the use of cryptocurrency as a form of exchange.
The bill does include exceptions for lawful gambling services, such as nonprofit raffles, state lottery games, and simulcast facilities.
By addressing the cryptocurrency element, the legislation would close loopholes that could have allowed online gambling operators to continue offering services despite state laws by offering an alternative form of payment.
The measure defines gambling platforms as those that allow consumers to place a bet and receive a payout with any form of currency. Online sweepstakes sites do not use currency for gaming, as Gold Coins and Sweeps Coins are utilized for slots and table games. This small discrepancy could help the industry avoid issues, but law expert Daniel Wallach disagrees.
Wallach spoke to Next.io about the legislation and stated that the bill clearly says that sweepstakes sites that accept payment from players and offer prizes are not allowed. According to Wallach, the use of the phrase “any form of currency” would be enough to cover sweepstakes games.
SB 555 updates the penalty structure for illegal gambling activities, with the solicitation or advertisement of illegal gambling as a misdemeanor offense. Anyone who knowingly operates illegal gambling platforms in Montana will be subject to felony charges.
Penalties may include up to $50,000 in fines or 10 years in prison. Judges can seek both punishments if they see fit.
What’s next?
For now, the Arkansas and Montana bills are in the early stages. To see such legislation move forward, support will need to be garnered in both chambers. It would not be surprising to see amendments made to clarify more on gambling, specifically sweepstakes casino services.
