Two Florida lawmakers launched laws final week that might ban sweepstakes casinos from working within the Sunshine State.
Rep. Walter Barnaby, a Republican representing the twenty ninth district, filed HB 953, whereas fellow Republican Sen. Corey Simon filed SB 1404.
According to gaming lawyer Daniel Wallach, these two payments “seek to extend FL’s statutory prohibition against gambling to include both ‘Internet gambling’ and ‘Internet sports wagering.’” The payments would come with sweeps casinos within the definitions of these phrases.
Additionally, Wallach tweeted that violating the weeps ban could be punishable as a third-degree felony.
The invoice would additionally apply to any on-line sports activities wagering whereas excluding the state’s settlement permitting the Seminole tribe to function a cellular sports activities betting app within the state.
“This prohibition basically covers every participant in the supply chain — i.e., operators, vendors and suppliers, payment processors, and media affiliates,” Wallach mentioned on social media.
More Legal Backlash for Industry
Sweepstakes casinos enable gamers to make use of digital forex to play casino-style video games. Typically, customers make a purchase order on the location and so they obtain two several types of cash, the place one forex is functionally play cash, whereas the opposite will be redeemed for actual money and prizes.
Critics argue that the platforms circumvent gaming legislation and benefit from gamers. The trade has confronted a slate of lawsuits in current months and states like New Jersey, New York, and Connecticut have moved to ban or regulate the platforms.
Operators argue that customers can play at no cost and should not have to buy further digital forex to take part. Players haven’t any expectation for profitable, they observe, and needs to be seen extra as conventional cellular gaming fairly than playing.
Advocacy Group Argues Bills Have Negative Outcomes
The Social and Promotional Games Association launched a press release on Monday noting that the payments inaccurately conflate secure and authorized social sweepstakes video games with “Internet gambling” and “Internet sports wagering.”
“This legislative overreach would criminalize legitimate business activities that entertain millions of Florida adults who enjoy social gaming experiences,” the SPGA famous. “The bills risk depriving Florida of tens of millions of dollars in revenue at a time when the state’s budget deficit is projected to grow to $7 billion in the next three years.”
The group added that these proposals might unintentionally criminalize firms that aren’t related to playing in any respect.
“These misguided proposals threaten significant unintended consequences that could make criminals out of major companies that regularly use sweepstakes promotions, such as Coinbase and Starbucks, not to mention the thousands of small businesses that rely on sweepstakes and similar marketing tools to survive and thrive.”
The SPGA urged Florida lawmakers to have interaction with trade representatives to study extra concerning the trade and operational variations between sweepstakes gaming and playing earlier than advancing the laws.
Ban Could Spell Regulated iGaming In The Future
Wallach believes passage of the payments might truly pave the way in which for real-money on-line casinos in Florida, after the Seminoles gained in federal and state courtroom to regulate sports activities betting within the state.
“Don’t be surprised if the Seminole Tribe and Gov. DeSantis soon announce that they have reached a deal on an amended compact that would grant the Tribe statewide exclusivity over iGaming,” he predicted. “Presaged by the D.C. Circuit decision, new DOI (Department of Interior) rule, and prior compact drafts. It’s coming.”
