Two Florida lawmakers introduced legislation last week that would ban sweepstakes casinos from operating in the Sunshine State.
Rep. Walter Barnaby, a Republican representing the 29th district, filed HB 953, while fellow Republican Sen. Corey Simon filed SB 1404.
According to gaming lawyer Daniel Wallach, these two bills “seek to extend FL’s statutory prohibition against gambling to include both ‘Internet gambling’ and ‘Internet sports wagering.’” The bills would include sweeps casinos in the definitions of those terms.
Additionally, Wallach tweeted that violating the weeps ban would be punishable as a third-degree felony.
The bill would also apply to any online sports wagering while excluding the state’s agreement allowing the Seminole tribe to operate a mobile sports betting app in the state.
“This prohibition basically covers every participant in the supply chain — i.e., operators, vendors and suppliers, payment processors, and media affiliates,” Wallach said on social media.
More Legal Backlash for Industry
Sweepstakes casinos allow players to use virtual currency to play casino-style games. Typically, users make a purchase on the site and they receive two different types of coins, where one currency is functionally play money, while the other can be redeemed for real cash and prizes.
Critics argue that the platforms circumvent gaming law and take advantage of players. The industry has faced a slate of lawsuits in recent months and states like New Jersey, New York, and Connecticut have moved to ban or regulate the platforms.
Operators argue that users can play for free and do not have to purchase additional virtual currency to participate. Players have no expectation for winning, they note, and should be seen more as traditional mobile gaming rather than gambling.
Advocacy Group Argues Bills Have Negative Outcomes
The Social and Promotional Games Association released a statement on Monday noting that the bills inaccurately conflate safe and legal social sweepstakes 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 noted. “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 could accidentally criminalize companies that aren’t associated with gambling at all.
“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 engage with industry representatives to learn more about the industry and operational differences between sweepstakes gaming and gambling before advancing the legislation.
Ban Could Spell Regulated iGaming In The Future
Wallach believes passage of the bills could actually pave the way for real-money online casinos in Florida, after the Seminoles won in federal and state court to control sports betting in 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.”
