Florida Pushes Sweeping Gambling Bill to Bolster Betting Integrity

Florida takes another step towards a floor vote, pushing HB189 out of the House Commerce Committee via an 18-5 vote. Filed by Dana Trabulsy, the bill revises the provisions related to gambling, including gaming machines, pari-mutuel permits & permit-holders, internet gambling, slot machines, and regulation of certain gaming activities. 

Although the bill doesn’t specifically name sweepstakes casinos or their games, its broad definitions of “internet gambling” can potentially target the thriving industry.

HB189 has already advanced through multiple House committees as of February 13th, targeting enforcement rather than specifically naming “sweepstakes casinos”.

Putting Sports Integrity First With HB189

According to Rep. Dana Trabulsy, HB189 aims to promote players’ safety and general welfare and comply with Florida’s 2021 agreement with the Seminole Tribe. Rep. Trabulsy explained that illegal gambling is available everywhere- you can play in restaurants, gas stations, bars, and online platforms. Trabulsy added that the state has seen a rapid proliferation of “illegal slot machines”.

HB189, if passed without amendments, would convert some gambling-related misdemeanors into felonies and recommend new felony offenses for wagering on sports contests known to be rigged.

The bill also preempts local governments from regulating gambling activities, and criminalize internet gambling services not placed via the Seminole Tribe’s Hard Rock Bet app. She also explained that lost taxes and enforcement gaps are the primary reasons why penalties must be upgraded.

Furthermore, the bill adds a third-degree felony for wagering “with knowledge”, or knowing that the contest has been pre-arranged or rigged.

Here’s How Sweepstakes Casinos Fit Into the HB189 Narrative

HB189’s language doesn’t directly mention sweepstakes casinos or their games. However, the bill redefines “internet gambling”, which could potentially affect sweepstakes casinos.

Tabulsy’s bill defines gambling as any online game awarding money or anything of value, based on chance, and simulates casino-style gaming. This language could apply to sweepstakes casino platforms where Sweeps Coins (SCs) are redeemable for cash prizes or other real-world prizes.

Sweepstakes casino operators may argue that their business model doesn’t require a purchase, thus avoiding the “thing of value” argument. However, many industry analysts see the bill’s language as possibly targeting popular sweeps platforms like Stake.us.

Once passed, Florida’s Attorney General could test and reinterpret it, making the future of sweepstakes casinos in the state uncertain.

REFERENCES

• Florida’s HB189