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New Florida bill targets sweepstakes casinos, DFS games

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Sweepstakes casinos may be among the targets of new bills filed in Florida that propose a tougher stance on some forms and instances of gambling and betting.

Senator Jonathan Martin and Representative John Snyder have proposed S1836 and H1467, each with the respective goal of implementing tougher punishments for gambling-related offenses. S1836, for example, would make it illegal to advertise unlicensed gambling in Florida, hoping to make it a second-degree felony. Running an unlicensed gambling house would be a third-degree felony.

This continues a string of bills being filed in the state that hope to increase control over the growing gambling industry in various ways.

Could Florida bill make sweepstakes casinos illegal?

S1836 has become among the most-talked about bills being considered in Florida right now given the implications for sweepstakes casinos and games. This bill has a focus on slot machines, stating that it wants to redefine slot machines as taking “direct or indirect payment,” then states that anyone manufacturing, owning, selling, or renting slot machines would be breaking the law — a third-degree felony.

The wording here is quite important to sweepstakes casino operators. Defining slot machines as any that take “direct or indirect payment” and targeting even those operations that don’t involve real money mean that even free-to-play slots on sweepstakes casino websites could be brought into the crosshairs of state enforcement.

Sweepstakes casinos currently get around strict gambling policies in various states by having two forms of currency. First, each sweeps casino has its own free coin that can be used to play games. Allowing players to play for free keeps them from the “gambling” definition in most states, allowing them to continue to operate freely. However, sweepstakes casinos also have a second currency, Sweeps Coins (SC), that cost real money to purchase. This is the only currency that can in turn earn gamblers real money to cash out.

Under S1836, such casinos’ slot machines would be illegal to operate and use, even if gamers were just using their free currency. Other states have also been targeting sweepstakes casinos recently, attempting to reword bills to ensure the sweeps’ structure is not free from consequences. This coincides with a recent prediction from a legal expert who believes sweepstakes casinos will soon be forced to change how they operate as more states attempt to stop them.

Another big issue tackled by the new Florida bills was lottery tickets, with Martin’s bill specifically stating that only lotteries run by the Florida Lottery would be allowed to operate. This would make anyone found with a non-Florida lottery ticket guilty of a third-degree felony while operators would be subject to a second-degree felony.

Fantasy sports were another hot topic. Snyder wanted to regulate fantasy sports, which the bill described as any contest where participants “pay an entry fee” to manage a fantasy sports team with the chance of winning a cash prize. Anyone operating a fantasy sports league without sticking to the new regulations would be charged with a third-degree felony.

In general, the proposals target gambling operators who aren’t under the existing scrutiny of Florida law, such as the local Seminole tribes who are legally licensed to operate in the state.

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