Five well-known online sweepstakes casinos have pulled out of states that have recently taken action — or started the process to take action — against the sweeps industry.
McLuck and Hello Millions have both added West Virginia and Maryland to lists of prohibited states in their terms and conditions. Meanwhile, Jackpota, Spree, and Mega Bonanza have all done the same for Maryland.
All five sweeps operators made the changes to their respective terms and conditions on Feb. 21.
Jackpota, Spree, and Mega Bonanza already had West Virginia on their exclusion lists prior to Feb. 21. Those three have now prohibited access in these 12 states (emphasis added to iGaming states):
- Alabama
- Delaware
- Georgia
- Idaho
- Kentucky
- Louisiana
- Maryland
- Michigan
- Montana
- Nevada
- Washington
- West Virginia
McLuck and Hello Millions also have those 12 on their prohibited lists, in addition to New Jersey.
Why are they leaving Maryland and West Virginia?
In Maryland, Senate Bill 860 would ban online sweeps operators. It was introduced on Feb. 5 and is slated for a March 5 hearing with the Senate Budget and Taxation Committee. The fact that the bill secured a hearing so quickly suggests there is at least interest in discussing the topic. Many bills don’t reach the committee stage.
Maryland lawmakers are also considering bills to legalize and regulate real-money online casinos, which would compete directly against sweepstakes gaming sites. Both bills — one in the Senate and one in the House — have already received hearings in late January and the second week of February. There is no word yet on potential next steps.
Maryland also has a track record of being tough on sweeps operators. In January, the Maryland Lottery and Gaming Control Agency issued cease-and-desist letters to 11 operators, including six sweeps platforms — Stake.us, Zula, Golden Hearts, REBET, Fortune Coins, and McLuck (which confirms why McLuck left Maryland).
In West Virginia, Attorney General JB McCuskey has issued subpoenas to an unknown group of sweepstakes operators, per reporting by Casino Reports.
It’s unclear whether McLuck and Hello Millions were included in the subpoenas, but their decision to exit may be linked to increasing scrutiny, where it may be better to voluntarily leave the state before getting forced out in a time where optics are crucial for the sweepstakes industry — which has long maintained it offers a safe and legal form of gaming entertainment that doesn’t require players to spend any money.
The latest in a recent slew of moves from sweeps sites
The moves from these five sites aren’t quite as dramatic as the departures from two other noteworthy sweeps operators over the past week.
On Feb. 18, High 5 Casino stopped accepting new accounts or purchases from anyone located in six states with regulated iGaming — Pennsylvania, New Jersey, West Virginia, Delaware, Connecticut, and Rhode Island. (Michigan had already been on its prohibited list.)
Then, on Feb. 20, Stake.us followed suit, adding Pennsylvania, New Jersey, West Virginia, Delaware, and Rhode Island to its prohibited list. A customer service representative said Connecticut would be added soon. Like High 5, Michigan had already been on the Stake.us list.
Jackpota, Mega Bonanza, and Spree are all still active in Pennsylvania, New Jersey, Connecticut, and Rhode Island. Hello Millions and McLuck are still available in Pennsylvania, Connecticut, and Rhode Island.
It is possible that additional sweepstakes platforms may update their prohibited state lists in response to ongoing legislative discussions. The decisions by these operators to withdraw from certain states appear to be strategic responses to evolving perceptions of their industry. The moves demonstrate a willingness to be flexible in an ever-evolving market. (Except in McLucky’s case in Maryland, where they were ordered to leave.)
In a time where lawmakers in several states are trying to push bills that would ban sweeps sites altogether, some operators may view compliance and not ruffling too many iGaming feathers as a long-term business strategy, despite potential short-term revenue impacts.
That could also be why VGW, the owner behind Chumba Casino, LuckyLand Slots, and Global Poker, recently upped its minimum age requirement from 18 to 21. This change aligns with responsible gambling initiatives and may reflect an effort to comply with industry trends and regulations.
Of course, a recent Sweepsy analysis suggests VGW’s move could also have been a reaction to upcoming Google Ads policy updates regarding gambling.
SPGA: ‘We urge lawmakers to consider a regulatory approach’
It feels like sweeps sites are open to regulation, especially because that may ultimately be their only path forward.
Beyond reading between the lines of recent operator decisions, the Social and Promotional Games Association also made that openness pretty clear when it issued a statement in response to a sweeps ban bill passing the Mississippi Senate in which it specifically asked for member operators to be regulated.
“Rather than enacting punitive measures that reduce innovation and consumer choice,” the statement read, “we urge lawmakers to consider a regulatory approach that enshrines transparency and consumer protections while allowing Mississippi adults to continue enjoying the fun, fair, and free-to-play games offered by social sweepstakes operators.”