Florida Sweepstakes Gaming Ban Passes First Senate Test

• A Senate bill to prohibit online sweepstakes gaming in the state has passed its first test
• The bill was approved unanimously by the Senate Regulated Industries committee
• The legislation bans sweepstakes sports betting and casino games

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Florida lawmakers have taken the first step towards passing a bill to ban sweepstakes sports betting and casino games in the Sunshine State.

The Senate Regulated Industries Committee this week unanimously approved Sen. Corey Simon‘s (R-3) bill, SB 1404, by an 8-0 vote. Simon’s bill prohibits “internet gambling” and “internet sports betting” outside of the Seminole Tribe, which effectively bans sweepstake gaming in Florida.

The bill has been moved forward to the Senate Appropriations Committee on Agriculture, Environment, and General Government.

Florida Cracks Down on Sweepstakes Gaming

Companion bills were introduced in both the Florida House of Representatives and Senate to ban “internet gambling” and “internet sports betting,” last month. If approved, the legislation will make both a third-degree felony. It will not affect the Seminole Tribe’s ability to offer Florida sports betting, however.

Rep. Webster Barnaby (R-29) introduced companion bill HB 953 as well. Barnaby’s legislation has yet to be voted on by a committee.

The bills do not impact the Seminole Tribe’s gaming compact with the Florida government.

 The 30-year gaming compact between the tribe and state grants exclusive in person and online sports betting to the Seminole Tribe, as well as the right to offer craps and roulette at its casinos. In exchange, the Seminole Tribe makes annual payments of at least $500 million a year to the state.

The gaming compact runs through 2051. It is likely that the Seminole Tribe will also allow iGaming in Florida at some point as well.

The new legislation defines “internet gambling” as playing or engaging in “any game in which money or other thing of value is awarded based on chance, regardless of any application of skill, that is available on the Internet and accessible on a mobile device, computer terminal, or other similar access device and simulates casino-style gaming, including, but not limited to, slot machines, video poker, and table games.”

The bill also prohibits sweepstakes gaming companies from offering sports betting games as well.

States Taking Action Against Sweepstakes

Florida is one of six states with introduced legislation to ban sweepstakes gaming. Connecticut, New York, Maryland, New Jersey, and Mississippi lawmakers are all considering bills to ban the form of gaming.

The Maryland Senate unanimously approved Sen. Paul D. Corderman’s (R-2) bill, SB 860, to ban online sweepstakes gaming and casinos by a 47-0 vote. It currently sits in the House Ways and Means Committee.

The Mississippi House of Representatives this month approved Senate bill SB 2510 to prohibit online sweepstakes games and sweepstakes casinos, but tacked on language to the bill to also legalize online sports betting in the state. This additional language will make the bill more difficult to pass, and the legislation is currently in a conference committee to see if any common ground remains between lawmakers.

In Connecticut, a group of lawmakers have also banded together to prohibit sweepstakes gaming in the Constitution State.

The Connecticut General Law Committee introduced SB 1235, which prohibits unlicensed participation “in certain real or simulated online casino gaming or sports wagering.”

The bill also prohibits lottery ticket resales and ticket courier services.

In New Jersey, Assemblyman Clinton Calabrese (D-36) recently introduced bill A5447 to ban the sweepstakes model of gambling in the Garden State. However, this comes just two months after the lawmaker introduced a piece of legislation to regulate and tax the form of gaming in New Jersey.

If signed into law, the legislation would prohibit the sweepstakes model of wagering in the state. It’s an interesting turn from Calabrese, who in January submitted legislation to regulate the form of gaming.

Calabrese’s January bill, A5196, designated sweepstakes casinos as iGaming, requiring licensure, oversight, and taxation for sweepstakes operators in the state. It was one of the first bills introduced in the country to regulate the form of online gaming.

Finally, in New York a Senate committee advanced legislation to ban the form of gaming. The New York Senate Racing, Gaming and Wagering Committee unanimously approved Sen. Joseph P. Addabbo Jr.’s (D-15) bill, SB 5935, which takes aim at online sweepstakes games and prohibits them in the state.

The legislation officially prohibits online sweepstakes games and revenue from illegal markets, plus laying out potential fines for operators or affiliates who offer or accept revenue from the prohibited games.