Sen. Bill Cunninnhgham’s bill, SB1705, proposes to clamp down on sweepstakes casinos in Illinois.
The bill looks to include a more far-reaching definition of gambling by including the purchase of items of value in exchange for playing games of chance to win other items of value. This looks specifically designed to target sweepstakes casinos which have found a legal loophole to operate.
The bill specifies that gambling would now encompass “entry into any contest, competition, sweepstakes, scheme, plan, or other selection process…for which the person may receive a gift, award, or other item or service of value”.
However, there is an exemption when games are free-to-play. As specified, “participants in a game of skill or chance where money or other things of value can be won but no payment or purchase is required to participate shall not be convicted of gambling”.
An amendment was added in the Gaming, Wagering, and Racing committee to clarify that online games would not be exempted from this condition. This would mean that free spins or other promotions run by sweepstakes casinos could be penalised.
Illinois battle against illegal gaming
In addition to this bill, there have been numerous moves in Illinois to target unauthorized betting. The state joined New Jersey, Nevada, and Ohio in issuing cease-and-desist letters to Kalshi, Robinhood, and Crypto.com over their prediction markets.
They accuse the sites of offering sports and political betting without a valid betting license. Kalshi continues to fight against the state regulators.
The Illinois Gaming Board also sent 11 cease-and-desist letters to various online operators in February over unlicensed sports betting.
States target sweepstakes casinos
Other states have also targeted sweepstakes casinos. The platforms which often use crypto as despoit methods are often based offshore and skirt state laws with their model of using virtual money rather than real cash.
Mississippi last week failed in a bill to outlaw this style of online gaming, the bill failed to move forward after amendments adding details about online sports betting. Similar bills have also failed to pass.
New York has progressed with bills against unauthorized gambling and last week a number of sites announced to users they would be exiting the state.
Idaho, Michigan, and Washington have taken harder stances and managed to pass legislation that bans or heavily restricts residents participating in sweepstake casino gambling.
Sen. Cunningham will be hoping Illinois can join the states that have managed to be successful in bills against this form of online betting. As the sub-chair of the Gaming, Wagering, and Racing committee, Cunningham has sponsored a series of bills to control gambling in the state.
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