Tennessee Bans Swept Games, Maryland Hosts Session

(AsiaGameHub) –   Legislators in Tennessee and Maryland have been reviewing bills this week aimed at explicitly prohibiting sweepstakes casinos.

In Tennessee, a House committee has greenlit a bill that will now advance to a final committee before a full chamber vote. Meanwhile, in Maryland, a Senate committee held a hearing—without taking a vote—on a bill that has already cleared the House.

Tennessee House Committee Approves Ban

Tennessee’s House State & Local Government Committee approved HB 1885 in a 21-to-0 vote, with one representative abstaining.

Last month, the House Departments & Agencies Subcommittee voted unanimously in favor of the bill. It will next move to the Finance, Ways & Means Committee; if approved there, it will proceed to a full vote on the House floor.

The legislation defines an online sweepstakes game as a platform that utilizes a virtual-currency system allowing players to engage in “gambling of any kind, including, but not limited to, casino-style gaming such as slot machines, video poker, table games, lottery games, bingo, or unlicensed sports wagering,” which can later be exchanged for “a prize, award, cash, or cash equivalent.”

Should the bill pass, violators could face a fine of up to $15,000 per violation.

Maryland Senate Hearing on HB 1226

In Maryland, the Senate Budget and Taxation Committee held a hearing on HB 1226. The House approved the legislation with minimal opposition on March 23, in a 135-1 vote.

The bill similarly defines sweepstakes games as “a game, contest, or promotion that:
(1) Utilizes a dual–currency system of payment allowing the player to exchange the currency for any prize, award, cash or cash equivalents, or chance to win any prize, award, cash or cash equivalents; and
(2) Simulates any form of gambling, including:
(3) Casino–style games, including slot machines, video poker, and table games such as blackjack, roulette, craps, and poker.”

The committee has not yet scheduled a vote on the bill. A similar piece of legislation was introduced in the Senate in January, but it also stalled after an initial hearing.

Maryland has taken steps to crack down on sweepstakes casinos. The City of Baltimore filed a lawsuit against five major operators last month, alleging the platforms are already violating state law.

The bill would increase potential penalties, with offenders facing up to 3 years in prison. The Maryland Lottery and Gaming Control Agency supports the stricter rules.

The agency has previously sent cease-and-desist letters to operators, including VGW. However, the company—which runs Chumba Casino, Luckyland Slots, and Global Poker—failed to comply, leading to a second round of letters being sent in November. Even so, the platforms still appear accessible in the state.

Most Platforms Block Access in Maryland & Tennessee

A total of 33 operators, including some of those sued by Baltimore (High 5, Stake, Pulsz, and McLuck), have exited Maryland.

Tennessee has also largely driven out operators, following a wave of cease-and-desist letters from the state’s Attorney General last year. Yet, some remain active.

If the bills pass in both states, it would further empower gambling regulators to take action against any companies that continue to operate.