Nevada’s Senate unanimously approved SB 256 Monday. The bill significantly increases penalties for illegal online gambling operators, including sweepstakes casino providers, and allows for the “disgorgement of any profits, gains, gross receipts, or other benefits relating to illegal gaming activities.”
Key insights
- Given Nevada’s dependence on its legal casino industry, House approval is likely.
- Nevada SB 256 is poised to hit sweepstakes casinos where it hurts, giving the state legal authority to claw back profits.
- While other states are looking to ban sweepstakes gambling and increase the penalties for illegal offshore gambling providers, Nevada may be the first to up the ante to include a provider’s “ill-gotten gains.”
Supporters introduced Nevada’s SB 256 on Feb. 27 and the Judiciary Committee referred it to the Senate on March 31. It now moves to the House, where it should have little trouble passing, given the key role legal casinos play in Nevada’s economy. Silver State legislators hope the bill will help deter illegal operators – and protect Nevada’s residents, legal operators, and the tax revenue they generate.
Other states also seek to ban sweepstakes casino operators. Sweepstakes gambling sites let customers wager with free coins. They can also purchase the additional coins with real money and exchange them for cash and prizes. These types of online casinos recently came under fire from state lawmakers and regulators.
Just last week, Louisiana introduced a bill to ban sweepstakes providers, levying fines up to $100,000. Connecticut’s SB1235 makes operating illegal sweepstakes gambling a Class D felony. New York, Illinois and New Jersey also have pending legislation.
However, not all states have been successful getting bills through. Maryland’s Senate unanimously passed its bill banning sweepstakes gambling but failed to get House approval before the end of its legislative session. Likewise, Arkansas’ and Mississippi’s bills banning sweeps died early in the legislative process.
Publishers Clearing House: late to the sweepstakes casino party
In related news, Publishers Clearing House declared bankruptcy Wednesday. Known for ads with presenters hoisting giant checks on people’s doorsteps, the company seeks to dump its direct mail and magazine subscription business to focus on – you guessed it – its sweepstakes gambling business.
“Our world-renowned sweepstakes will continue to be a cornerstone of our experiences, and we intend to continue offering free-to-play entertainment and awarding prizes in the ordinary course of business during and after this process to uphold the historic legacy of Publishers Clearing House," company CEO Andy Goldberg said.
Apparently, no one told them or their lender, Prestige Capital, that a number of states are in the process of banning their new “core” business.
