Nevada has joined a growing list of US states looking at curbing sweepstakes casinos with its introduction of Senate Bill 256.
It was filed at the end of February and referred to the Senate Judiciary Committee. Then, on March 12th, the committee heard from Nevada state senator and bill sponsor, Rochelle Nguyen, as well as a senior legislative intern who argued in favor of the bill and its three aims:
- Disgorgement of profits: “Any online gaming app or operator found guilty of illegal gaming activities must forfeit all profits, gross receipts, and benefits obtained from these activities. That money will go into the state general fund.”
- Increased criminal penalties: “The bill increases fines and turns some offenses from misdemeanors into felonies, meaning serious legal consequences for the violators.”
- Extension of liability beyond state borders: “Even if an illegal gaming app operates outside of Nevada, it can still be prosecuted if it takes bets from people within the state.”
The committee also heard from Daron Dorsey, President and CEO of the Association of Gaming Equipment Manufacturers (AGEM), the gaming supplier industry’s trade association. He expressed support for the bill and took questions from senators.
Nevada is a Unique State
While Nevada does permit online gambling in the form of poker and sports betting, it’s one of only two states to do so while not permitting online casinos. Of course, the existence of Las Vegas, the gambling capital of the world, within its borders also makes it a unique location.
Its laws prohibit any form of gambling that doesn’t fall under the jurisdiction of the state’s gaming commission or regulatory framework; the Nevada Gaming Control Act (NRS 463) makes it clear that any gambling operation in the state must be licensed and regulated by the Nevada Gaming Commission.
However, enforcement can be tricky, so SB 256 would amend NRS 463.360, strengthening the penalties and financial consequences for illegal gaming operations, making it easier to go after so-called illegal operators.
Similar Anti-Sweepstakes Bills in Other States
A raft of recent private lawsuits in the US still hasn’t produced a definitive precedent on sweepstakes sites. Now state lawmakers around the country are taking matters into their own hands, introducing bills which seek to draw a clearer definition and exclude the sweepstakes format.
Nevada’s new bill is a little different from other bills seeking passage, though. Rather than defining sweepstakes as illegal – like those in New Jersey, New York, Florida, Maryland, and Mississippi – it’s an amendment which focuses on increasing penalties and expanding liability beyond state borders. The bill does not reference sweepstakes, or even a dual currency format, but at the recent Senate Judiciary Committee, supporters did mention sweepstakes casinos in their arguments.
In actuality, many sweepstakes casinos don’t operate in the Silver State, including giants like McLuck, High 5, and Stake.us. However, some do, and they could still potentially use the same argument that the sweepstakes dual currency format was founded on: it’s not gambling, because it removes the act of consideration (payment to participate).
However, if SB 256 gains passage, lawmakers may be hoping the increase in penalties on its own is enough of a deterrent to sweeps sites in Nevada. Whether it would make enforcement in reality any easier remains to be seen.
We’ll report on the eventual outcome of this bill, so stay tuned to SweepsKings for future updates.
Author: Mike F.
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