Sweepstakes Casinos Face NCLGS Enforcement Heat

Sweepstakes casinos get the spotlight during the National Council of Legislators from Gaming States (NCLGS) Winter Meeting. But instead of a pat on the back, it receives plenty of criticism and a warning for more regulations. 

Invited panellists warned that the platform’s dual-currency model poses a threat to regulated markets and state’s gaming laws. Dan Hartman, former Director of the Colorado Division of Gaming, was quoted as saying that these platforms “violate the spirit and letter of gaming laws, and NCLGS President (WV) Del. Shawn Fluharty added that these platforms constitute “illegal gambling and revenue theft.

The criticisms levelled at sweepstakes casino operators during the Winter Meeting encapsulate what the industry faces year-round: tightening regulations and the potential for more state bans on the horizon.

Sweeps Casinos Set the Conversations At San Juan, Puerto Rico

The National Council of Legislators from Gaming States (NCLGS) Winter Meeting is a regular gathering of policy makers, regulators, and industry leaders shaping regulated gaming. This year’s meeting was held at San Juan, Puerto Rico, which started on December 10th.

The Winter Meeting’s guest list and panellists feature some of the key figures in iGaming, including NCLGS President and West Virginia Delegate Shawn Fluharty, former Colorado Division of Gaming Director Dan Hartman, gaming lawyer Daniel Wallach, Social Gaming Leadership Alliance (SGLA) Executive Director Jeff Duncan, and Bryan P. Schroeder, general counsel of ARB Interactive.

Here's What the Resource Persons Say About Sweepstakes Casinos

Although the 3-day meeting was loaded with topics and discussions on policies and regulated gaming, sweepstakes casinos became a contested topic. Here are some of the key talking points during the event:

• Dual-curreny model is illegal and incompatible with existing gaming laws
• Former Director Dan Hartman says that these sites “violate the spirit and letter of gaming laws”, and added that self-regulation isn’t a replacement for state regulations
• NCLGS President (WV) Del. Shawn Fluharty added that these sites are “illegal and revenue theft”
• Daniel Wallach explained that the opinion of the state’s attorney general is an “underused enforcement mechanism”

Sensible Regulation and Education, Not Litigation, Says Industry Supporters

The sweepstakes casino industry has its supporters, too, with Jeff Duncan of the Social Gaming Leadership Alliance (SGLA) taking the lead. Duncan told lawmakers that regulation is the way to go, and they’re willing to pay taxes. He challenged lawmahers to “go after the bad actors”.

Bryan P. Schroeder of ARB Interactive was also on the panel, pushing for education, rather than taking lawmakers to a courtroom brawl.

REFERENCES

• SGLA
• NCLGS