It’s been an active past few days for sweepstakes casinos on the East Coast.
And not active in a good way.
On Dec. 3, a bill banning online sweeps casinos was filed in the Maine Legislature. It dives deeper into the dual-currency model employed by sweeps operators than other similar bills in other states, as it directly highlights the practice of “encouraging” players to buy Gold Coin currency packages that include Sweeps Coins.
Then, on Dec. 5, New York Gov. Kathy Hochul signed Senate Bill 5935, immediately outlawing sweeps casinos in the state. New York now joins Montana, New Jersey, Connecticut, and California as the states to legally ban sweepstakes casinos in 2025.
And these actions both come after the introduction of a massive 86-page bill in Florida that includes a number of gambling stipulations, including banning sweeps casinos.
Maine bill digs into nuances of Gold Coin, Sweeps Coin ecosystem
Like other sweeps ban bills, Maine’s bill specifically calls out “dual-currency” gaming. However, it does so in a more elaborate way, digging into the exact practice of buying packages of Gold Coins, which cannot be redeemed for cash, in order to acquire Sweeps Coins, which can be redeemed for money, as a bonus for that Gold Coin package purchase.
“‘Dual-currency system of payment’ means a system of payment that allows a person to play or participate with direct consideration or indirect consideration or that is otherwise designed in a manner that:
“A. Prevents a person from directly purchasing coins, tokens or other representations of value that are redeemable for any cash prize, cash award or cash equivalents or the chance to win any cash prize, cash award or cash equivalents; and
“B. Encourages a person to purchase services, products, coins, tokens or other representations of value that are not exchangeable for a prize, award, cash or cash equivalents or a chance to win a prize, award, cash or cash equivalents in order for that person to obtain the coins, tokens or other representations of value that are exchangeable for prizes, awards, cash or cash equivalents or a chance to win a prize, award, cash or cash equivalents.”
It then elaborates on “indirect consideration” by describing exactly what a Sweeps Coin is:
“[A token that is] provided for free through a promotion or bonus or with the purchase of a related product, service or activity; and … may be exchanged for a prize, award, cash or cash equivalents or a chance to win a prize, award, cash or cash equivalents.”
Maine Gambling Control Unit decides what ‘dual-currency’ is
The bill also gives the Maine Gambling Control Unit sole discretion over deciding what is and is not a dual-currency gaming economy, thus allowing the agency to have authority over decisions regarding any future currency systems sweeps operators may attempt to use in place of dual-currency — like what ClubWPT Gold has done recently as part of its attempted rebrand to becoming a poker education platform.
“Social Plus games are a longstanding online product that tens of thousands of Maine adults currently enjoy,” Sean Ostrow, the managing director of the Social Gaming Leadership Alliance, said in a statement responding to Maine’s bill. “LD 2007 would ban this social games category entirely, stifling innovation and stripping millions of dollars of economic activity from small businesses, advertisers and — ultimately — the state. SGLA urges the Legislature to take a more considered, long-term approach to this innovative sector and regulate, rather than senselessly ban, this popular form of free to play, casual entertainment.
“SGLA partner companies operate fully within Maine’s consumer protection laws and remain committed to working with lawmakers to provide further regulations to protect consumers while delivering millions in annual tax revenues to the state.”
Maine’s SB2007 currently sits with the Joint Veterans and Legal Affairs Committee.
Gov. Hochul signs New York bill banning sweeps casinos
After passing nearly six months ago in the New York Legislature, SB5935 was finally signed by Gov. Hochul with an effective immediately stipulation included in the language, thus making sweeps casinos officially illegal in New York on Dec. 5.
Most reputable operators, including VGW (Chumba Casino, LuckyLand Slots, Global Poker), had already either fully shut down in New York or at least removed Sweeps Coin gameplay. Now, all operators must be out or face the consequences set forth in SB5935 — which include a fine of up to $100,000 and losing eligibility to ever hold a gambling license in the state.
Like Maine’s SB2007, New York’s SB5935 specifically gives its state gaming regulator — the New York State Gaming Commission — sole authority over determining what is included in the “dual-currency” economy definition.
And like California’s Assembly Bill 831, which will become law on Jan. 1, SB5935 also targets entities working in tandem with sweeps casinos, including any “financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate.”
