Not a lot of news has come out of West Virginia since its Attorney General John McCuskey sent out 47 subpoenas to sweeps casinos the day he took office in January.
However, speaking at the National Council of Legislators from Gaming States last week, McCuskey revealed that 20 sweepstakes operators have now withdrawn from WV. He went on to say no operator has yet responded to the subpoenas specifically.
No list of exactly which casinos were targeted has been released, but we reported that Jackpota left WV in February, and it’s thought the below casinos all left as a result of the subpoenas. Note there are more than 20 listed here:
- Rolling Riches
- Modo.us
- Stake.us
- Chanced, Punt.com (Gold Coin Group)
- High 5
- McLuck, Hello Millions, Mega Bonanza, Jackpota, SpinBlitz, PlayFame (B2)
- Pulsz, Pulsz Bingo (Yellow Social Interactive)
- Legendz
- Funrize, NoLimitCoins, FunzCity, Fortune Wheelz, TaoFortune (A1)
- Sidepot
- Spree
- Baba
- Carnival Citi
On the other hand, the math implies a good portion of the contacted casinos are still doing business in WV. For example, Chumba, RealPrize, WOW Vegas, and Fortune Coins are all still present. This is not unusual, with some brands always willing to push the boundaries and assume more risk than others.
In most states, sweepstakes casinos operate in a gray area of law, avoiding classification as gambling because of the dual-currency format and lack of direct ‘consideration’. However, many states are starting to push back and draw a clear line in the sand.
A Similar Story From the New York Attorney General
There are certainly parallels with New York last month, where Attorney General Letitia James announced she’d successfully chased 26 sweepstakes operators from the Empire State, this time using cease and desist letters as a deterrent.
It’s worth noting that a subpoena and a cease and desist letter are different tools.
A subpoena is a formal legal demand for information or documents, and failure to cooperate can lead to penalties. They are typically used to investigate potential legal violations, as appears to be the case in West Virginia – McCuskey is indicating that sweepstakes casinos are violating WV law.
In contrast, a cease and desist letter is a warning rather than a binding legal order. It signals potential legal consequences if the activity continues but doesn’t carry the same immediate legal threat. In essence, West Virginia is taking a harder line than New York.
West Virginia Wants to Protect Its Regulated Online Casinos
This difference in approach is likely related to WV being one of the seven US states where online gambling is legal, so McCuskey will have been eager to draw the distinction between regulated and non-regulated gaming business. New York, on the other hand, has no legal iGaming currently, though certain lawmakers, like Senator Joseph P. Addabbo, have been trying for years to make that happen.
However, with McCuskey sending out the subpoenas on his first day in office, it’s clear it’s an important issue for him. That makes it all the more surprising we haven’t heard of more action being taken in this state, but maybe things are progressing behind the scenes. And, as we can see, plenty of operators have been pulling out in response to the threat of legal action.
Ultimately, players in WV should brace themselves for the potential of more changes in the future that may affect their right to play at sweeps platforms.
Author: Joseph Allen
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