Florida Online Sweepstakes Bill Takes Aim at Operators Offering What They Deem Unregulated Betting

Multiple Florida online sweepstakes prohibition bills seek to take aim at mobile operators that The Sunshine State believes are offering unregulated gambling.

A pair of initiatives are on the table for the Florida state legislature to consider. At their essence, they will ban sweepstakes casinos, internet casino gaming, and online sports betting in the state outside the scope of the Seminole Tribe.

One of these bills comes from the House. Representative Walter Barnaby filed House Bill 953 (HB953) shortly after the start of this year’s sessions. The other proposal originates in the Senate. Senator Corey Simon is sponsoring what’s being called a companion bill on the matter, titled Senate Bill 1404 (SB 1404). 

Thus far, there remains some confusion over the interpretations of either initiative. One appears to push for a sweeping ban on Florida online sweepstakes transactions. The other, however, suggests that the Seminole Tribe is hoping to expand its scope online sports betting in Florida. 

Regardless, the nature of these legislative discussions acknowledges the rising popularity of sweepstakes gaming. More critically, it seems to suggest that online sports betting operators view this type of gaming as an existential threat to their industry—or at least their market shares.

What Falls Under The Florida Online Sweepstakes Umbrella?

Before we go any further, we have to ask what falls into the Florida online sweepstakes category. Chris Altruda of Casino Reports offers the following definition:

“It’s a social online casino – which is a website or app where people can play digital and live-dealer casino games online – that offers sweepstakes promotions. The common use of sweepstakes in the name refers, basically, to the mechanism that allows the casino to operate for actual stakes legally.”

Online sweepstakes sites have been growing in number as online sports betting in the United States becomes more of a staple. Since sports gambling is now legal in some capacity throughout most of the country, there is less of a need for operators that provide sports betting loopholes. Think along the lines of daily fantasy sites. They used to exist in a gray area, since states did not have the infrastructure to flat-out legalize or ban them. Legislation that takes aim at them, in some for another, is now standard practice.

Florida online sweepstakes sites now fill a similar void for casino gaming. As of now, only seven states have legalized online casinos: Connecticut, New Jersey, Michigan, Delaware, Rhode Island, Pennsylvania and West Virginia. Among the remaining 43 states, though, most do not have language that specifically bans them. 

In the case of The Sunshine State, this is where Florida online sweepstakes operators enter the fold. They offer a service that exists in the same gray area in which daily fantasy sports betting used to reside.  

Is The Seminole Tribe Seeking to Expand Their Online Footprint in Florida?

Some are reading the presentation of these bills as a cut-and-dry attempt to crack down on unregulated gambling. That may be the correct interpretation. 

Yet, the heightened focus on Florida online sweepstakes sites is leaving many to wonder whether the Seminole Tribe is angling for casino gaming expansion themselves. 

Right now, this is not a medium they occupy. Though their Hard Rock Florida sports betting app can be accessed from anywhere in the state, it encompasses event-specific wagering only. 

Banning online sweepstakes sites not associated with Seminole Tribe could be a preamble to Florida online casino legislation. Indeed, certain experts believe the language in at least one of the bills confirms as much. 

It is not clear at the moment how this particular interpretation will be received. On the one hand, The Sunshine State has already granted sports betting exclusivity to the Seminole Tribe. Would they really have an issue expanding this iGaming?

On the flip side, sentiments on Florida online casinos are mixed among officials. Florida online sports betting is accessible enough, and it at least incorporates a level of skill, in theory. Casino games are mostly events of pure chance. Co-signing these offerings beyond the walls of brick-and-mortar establishments has typically been considered too risky when looking at its potential socioeconomic impact on the population.

Florida Online Sweepstakes Prohibition Bill is Not The First, and It Won’t Be The Last

The Sunshine State joins a growing list of places trying to ban online sweepstakes sites. Connecticut, Maryland, Mississippi, Nevada, New Jersey and New York all have actions of their own on the table. 

To this point, Connecticut remains the most proactive. As Pat Evans of Legal Sports Report writes:

“Last week, the Connecticut Department of Consumer Protection sent a suspension order to High 5 Games, which also provides games to the state’s regulated online casinos. The letter said High 5 had offered unregulated casino gambling to residents, including those on the statewide exclusion list. There were 1,100 customers in Connecticut who made purchases and played games, 911 of which lost a total of $937,938. Of those 911, 108 were on the state’s gambling exclusion list. According to a DCP spokesperson, 6,470 people are on that list.”

This report highlights the importance of regulation. It is an argument The Seminole Tribe themselves used when pushing for the expanded usage of their Florida sports betting apps. And it will likely be one they reiterate if they're hoping to broaden the scope of their casino gaming.

Whether this is the Seminole Tribe’s actual intent remains to be seen. Either way, though, the current legislative agenda seemingly spells bad news for Florida online sweepstakes sites—and, perhaps, sweepstakes operators in general.

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