Florida Moves to Ban Sweepstakes Gaming While Tribal Agreement Stays in Place

Florida lawmakers are pushing to ban sweepstakes gambling, targeting online casino-style games and internet sports betting while keeping the Seminole Tribe’s exclusive gaming compact intact. Two bills, HB 953 and SB 1404, introduced by Rep. Webster Barnaby (R-29) and Sen. Corey Simon (R-3), aim to criminalize sweepstakes gaming operations, with violations leading to a third-degree felony charge for operators.

The proposed laws define internet gambling as any game where winnings are based on chance, even if skill plays a role. This includes online versions of table games, video poker, and slot machines. Internet sports wagering refers to bets placed on contests of skill, speed, or endurance through online or mobile platforms.

While the legislation increases restrictions on unregulated gambling, it does not affect the Seminole Tribe’s long-term gaming compact with Florida. The 30-year agreement, signed in May 2021, gives the tribe exclusive control over in-person and online sports betting, as well as craps and roulette at its casinos. In return, the tribe pays the state at least $500 million annually.

Florida’s latest effort to tighten gambling regulations aligns with a broader national trend. Several states are also cracking down on sweepstakes gambling, while there is already an outright ban in North Carolina, although there are still some loopholes presently:

  • Mississippi’s Senate passed SB 2510 by a 44-1 vote a few weeks ago, making sweepstakes gambling a felony with fines up to $100,000 or 10 years in prison. The bill is now with the state’s House.
  • Maryland lawmakers introduced SB 860 and HB 1140, which would let regulators deny gaming licenses to sweepstakes operators.
  • Connecticut’s SB 1235 aims to ban unlicensed online casino gaming and sports wagering while also restricting lottery ticket resales and courier services.
  • In January of this year, New Jersey saw the introduction of Bill A5196, aiming to regulate the fast-growing yet unregulated sweepstakes casino sector

Under the proposed Florida bills, players who engage in illegal internet gambling could face a second-degree misdemeanor, while operators running such games would be charged with a third-degree felony. Internet sports betting violations would only lead to penalties after a second offense.

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The Seminole Tribe’s Hard Rock brand launched online sports betting in December 2023 under the existing compact. Some analysts believe the broad wording in the new legislation could leave space for the tribe to expand into online casino gaming in the future.

Lawmakers argue that the ban is intended to curb unregulated online gambling and protect consumers. However, industry experts caution that unclear language in the bills may create confusion and leave room for broader interpretations that could shape future gaming laws in Florida.

Just this week,  High 5 Games announced to shut down its sweepstakes operations in 6 more states, and is not available any longer in the states of Connecticut, Delaware, Idaho, Kentucky, Louisiana, Michigan, Montana, Nevada, New Jersey, Pennsylvania, Rhode Island, Washington, and West Virginia.

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