The Changing Sweepstakes Casino Map: Industry Expert Alex Korsager on What 14 State Restrictions Mean for the Industry
To say that the USA has a complicated relationship with gambling must be one of the greatest understatements of all time. While it might not be up there with “Houston, we’ve had a problem”, which was uttered by the crew of NASA’s Apollo 13 after their oxygen tank exploded while the crew was about 200,000 miles away from earth, it genuinely is a paradox.
On the one hand, the USA’s tourist information site heralds Las Vegas as the one of the country’s entertainment epicenters, and on the other many state regulators go out of their way to restrict anything akin to gambling, not just real-money online casino games, but anything even vaguely similar.
Right now, only residents in New Jersey, Pennsylvania, New Jersey, Delaware, Michigan, West Virginia and Rhode Island have legal access to real-money online casinos and Maine will come online in the not-too-distant future. Up until recently, alternative, gambling-adjacent sweepstakes casinos were a great alternative for people outside of these jurisdictions. However, some states are now clamping down on these as well.
We sat down with Alex Korsager, Chief Gaming Officer at independent online casino review site Casino.org, to get the latest updates on sweepstakes casinos and where they can be played.
Hi Alex and welcome. So, what is going on with the sweepstakes casino market?
Alex Korsager:
Thanks for inviting me in. I think the first thing I’d like to say is that despite recent bans, there are still plenty of opportunities for players to enjoy slots and all the other casino style games either at social casinos or in the many sweepstakes casinos that are still widely available.
While it is true that 14 states have declared sweepstakes games “off limits”, that still means that they are available in the majority of US jurisdictions. In addition, many of the states where they are not available offer real-money alternatives and they have banned sweepstakes casinos so that they do not compete with their state-regulated sites. So, while the headline sounds quite dramatic, there are still plenty of opportunities for iGamers.
However, multiple states have enacted or implemented restrictions, so it is important that players know what they can play and where. At Casino.org, we review the full gamut of opportunities and do genuinely think that with the possible exception of states like Utah and Hawaii, there really is something for everyone.
Thanks for clarifying that, Alex. Could you bring us up to speed with the latest developments please?
Sure thing. At Casino.org, we keep ourselves very well informed and have a news service so that players can be as well informed as our experts are. We think transparency and honesty are incredibly important and that is central to everything we do. So, working backwards in date order here is what the regulators have been up to so far this year:
Wyoming
The state’s Select Committee on Gaming declined to advance draft language classifying online casino games and sweepstakes platforms as professional gambling.
Louisiana
A sweeps ban has gone into effect.
Maine
The sweepstakes casino ban was reported as being in effect, prohibiting dual-currency casino-style sweepstakes games with civil fines of between $10,000 to $100,000 per violation.
Minnesota
An attempted ban was reported as failed.
Tennessee
Online sweepstakes games are expressly banned and enforcement tools for the attorney general and sports wagering regulators have been introduced.
Oklahoma
Lawmakers overrode Gov. Kevin Stitt’s veto of SB 1589, and advanced a ban on online sweepstakes casino-style platforms
Florida
Florida lawmakers approved HB 189 to ban online sweepstakes casinos in the state and treat operating them as a third‑degree felony
Illinois
The Illinois Gaming Board has sent out 65 new cease‑and‑desist orders against unlicensed online gaming operators, including sweepstakes and social-style platforms. It has said that unlicensed sweepstakes operators and other forms of illegal gambling are not welcome in Illinois.
Mississippi
Regulatory pressure mounted in Mississippi a ban moved one step closer to approval into law.
Tennessee
Tennessee introduced HB 1885 against a backdrop of sweeps brands withdrawing from the state last year.
Iowa
The Iowa Racing and Gaming Commission (IRGC) was granted enforcement authority against ‘illegal sweepstakes casinos’.
California
California banned sweeps casinos at the start of the year.
Maryland
Maryland stated that online casino gaming is not permitted in Maryland and issued cease-and-desist orders to several sweeps’ operators.
Gosh, that is a lot of legislation and focus on the sector. Do you think it can survive?
Well, that’s the funny thing. Despite new restrictions, the sector is actually expanding, and new sweepstakes casinos are coming online all the time. While this was once a niche sector it is now very much mainstream. In a way, all the bans have done is draw more attention to it and make people aware of potential opportunities. The sector is considerably larger than its real money counterpart in terms of reach and revenue.
Do you think that alternative, quasi casino games opportunities will be invented?
The truth is that they already exist. Hundreds of social casinos across the country allow people to play just for the fun of it. In addition, a whole new sector of parimutuel casinos is now emerging to circumvent the latest restrictions.
Parimutuel Casinos? What are they?
In parimutuel gaming, payouts are determined by live horse racing pools, rather than by traditional RNG payouts. These sites offer the same kinds of casino-style games, such as slots, roulette, and even mini-games like Plinko, but are now legal in states where other gambling platforms are outlawed.
Traditional casino games are played against the house, meaning the operator sets the odds and pays winners from its own bankroll. With Parimutuel games players wager into a shared racing pool, and winnings come from that pool after the operators have taken their commission.
So, where there’s a will there’s a way?
Yes, I think that is a great way of looking at it. Players want to play, and platforms want to offer their services. Our advice to players is to make sure that they are playing on reputable sites, no matter what form the online casino games take. That is why we review, rate and rank all forms of casino gambling because we want to keep our readers safe and match them with the opportunity that is right for them.
Any final words of advice?
Yes, remember to keep the fun, fun and never wager more than you can afford to lose in time or money!
Thanks, Alex.
The views and opinions expressed by the writers and columnists of Casino Player, Strictly Slots, and Casinocenter.com do not necessarily reflect those of the magazine’s management. All content is intended solely for entertainment and informational purposes. Gambling may be illegal in some jurisdictions—it is the responsibility of each visitor to check and comply with local laws before participating in online gaming. Always read the terms and conditions, and gamble responsibly.
