West Virginia is reportedly the latest regulated iGaming state looking to take a stand against sweepstakes casinos.
Casino Reports on Wednesday published an unconfirmed report that West Virginia Attorney General JB McCuskey plans to either subpoena or send cease-and-desist letters to sweeps casinos operating within the state of West Virginia during his first month as AG.
With such action, West Virginia would join Michigan, Connecticut, and Delaware as the fourth regulated iGaming state to seek legal enforcement against social or sweeps gaming sites. What is different here is that the action is originating from the AG’s office, rather than the state’s gambling regulatory board, as is the case with the others on that list.
AG: WV residents ‘being targeted by illegal gambling operators’
McCuskey confirmed his concern around the unregulated casino sites in a statement to Casino Reports:
“We have serious concerns about West Virginia consumers, specifically our children, being targeted by illegal gambling operations,” he said.
“From day one, my priority has been to protect consumers and ensure our children are not being exposed to these operations or their advertising — while at the same time supporting those which are licensed and operating within the confines of the law.”
Recent increased attention on sweepstakes operators has made them more difficult for legislators and regulators to ignore. The standing of social and sweepstakes casinos has increasingly been called into question, but ultimately, it’s up to each state to address their stance on sweeps gaming sites — or choose not to do so. Lately, more states are opting for the former, but with varying approaches.
The legislation approach against sweeps
A few states so far are looking to address sweepstakes gaming directly through legislation.
A legislator in New Jersey recently proposed a bill that would provide a path for sweepstakes operators to be licensed and regulated within the state’s existing iGaming market.
Meanwhile, New York Sen. Joseph Addabbo aims to exclude sweeps operators by way of a provision in his filed iGaming bill. That provision bans any operator that has provided internet casino games to players in New York in the three years leading up to the bill passing. The chairman of the NY State Gaming Commission also recently shared a concern around social gaming sites.
“I have serious concern that there are operators conducting business inside our state that are running afoul of New York’s penal restrictions on unlawful gambling,” O’Dwyer said this week during a NYSGC meeting. “I have discussed with our staff. It is my understanding that staff have made several referrals to law enforcement and is assisting in case development.”
Mississippi also just proposed an amendment to expand the definition of unregulated sweepstakes gambling to include online platforms, and to increase criminal penalties for promoting or operating them.
Cease-and-desist the most popular method to date
It appears West Virginia will join the growing list of sites taking the cease-and-desist approach, which also likely serves as a warning to other sweeps operators.
States to take that approach so far include regulated gaming states Michigan, Connecticut, and Delaware, as well as Massachusetts and the latest addition, Maryland.
Whatever the path, expect more states to address their stance on sweepstakes sites going forward as industry pressure continues to mount.