Arkansas proposes to ban sweepstakes operators and legalize online casino
House Bill 1861 seeks to abolish the vertical while permitting igaming via the state’s three existing licensed land-based casinos
Legislation has been proposed in Arkansas which would outlaw sweepstakes operators in the state while legalizing online casino at the same time.
House Bill 1861 was introduced by state representative Matt Duffield on March 19 and is currently with the House Judiciary Committee for further review.
Senator Dave Wallace also introduced his own legislation, SB 524, before withdrawing it from the Senate Insurance and Commerce Committee this morning. Wallace is listed as the other primary sponsor on Duffield’s proposal.
Duffield’s bill would prohibit any sweepstake gaming in Arkansas which use a “dual-currency system of payment that allows the player to exchange the currency for a prize, aware, cash, or cash equivalent, or a chance to win any prize, award, cash, or cash equivalent.”
HB1861 would also ban casino-style sweepstake games such as slots, poker, blackjack, and roulette.
Any sweepstake games which fail to offer a cash or cash equivalent reward will also be prohibited by the new legislation.
Restrictions have also been put forth for parties that operate unregulated sportsbooks or online casinos as part of Duffield’s bill.
However, igaming legalization has been tabled as part of the proposal.
Regulated online casino would be permitted via the state’s three licensed casinos: Saracen Casino Resort, Oaklawn Racing Casino Resort, and Southland Casino Hotel.
All three casinos, which currently offer sports betting, would also be allowed to partner with an igaming operator should the bill be passed.
The Arkansas Racing Commission will act as the regulatory body for igaming and be responsible for awarding licenses to potential operators.
Last week, New Jersey representatives introduced potential legislation designed to ban sweepstake gaming in the state.
A bill to ban sweepstake casinos in New York also advanced in the state earlier this week.
Furthermore, High 5 Games has been suspended in Connecticut for offering its sweepstake casino High 5 Casino without the proper license.
The company was also issued a cease-and-desist order in Maryland for a similar offence.
Another sweepstake operator, Virtual Gaming Worlds, was also handed a cease-and-desist order by the Maryland Lottery and Gaming Control Agency (MLGCA) earlier this month.
The SGPA said: “The Social and Promotional Games Association strongly opposes Arkansas bills HB1861 and SB524, which dangerously misclassify lawful social sweepstakes games as illegal gambling.
“These proposals echo anti-competitive efforts pushed by entrenched casino interests and represent a significant threat to businesses, innovation, and a consumer’s freedom to choose what games they can play on their phones.
“By broadly redefining ‘dual-currency system’ games and imposing felony penalties, these bills risk criminalizing not only social sweepstakes but also standard promotional tools used by countless US companies, including McDonald’s, Coca-Cola, Pepsi, Burger King, Amazon, and American Airlines.
“Sweepstakes and draw-based promotions have been a staple marketing strategy for decades, driving engagement while fully complying with existing laws.”