Online sweepstakes casinos in Florida are breathing a sigh of relief as efforts to ban operators and non-tribal mobile sports betting faced a major setback earlier this week. Two significant Bills were indefinitely postponed and withdrawn from legislative consideration after they failed to draw the support of Florida senators.
Key Points to Consider About the US Bills
- Senate Bill 1404 opposed the general operation of online gambling platforms, including sweepstakes casinos.
- House Bill 1467 criminalised sports betting on platforms outside the Hard Rock ecosystem.
- Both bills faced resistance in the Commerce Committee, where a series of amendments were requested, which might have contributed to their withdrawal.
- The bills could be reintroduced if Governor Ron DeSantis decides to extend the legislative session.
A Temporary Victory for Sweepstakes Casino Operators
The decision to withdraw the Bills marks a significant victory for sweepstakes casino operators; although it’s far too early to celebrate, as the bills can be reintroduced. Senate Bill 1404 (SB 1404), which was introduced by Senator Corey Simon, proposes a complete ban on the operations of sweepstakes casinos and online gambling platforms in general.
The same Bill proposed that online gambling and mobile sports betting operations outside Florida’s exclusive agreement with the Seminole Tribe – owner and operator of the Hard Rock brand – be banned completely. The Bill aimed to put state control over all gambling operations under the existing agreement with the tribe.
However, progress came to a grinding halt when a substitute Bill attached to the original legislation failed to clear the Senate Appropriations Committee on Agriculture, Environment, and General Government. The Senate Committee’s decision not to proceed with the Bill in the current session has tentatively put the Bill on hold at least till the next session or unless Gov. DeSantis decides to hold a special session.
SB 1404 isn’t just a means to eliminate unregulated or semi-regulated gambling sweepstakes operators. It also serves as a precursor to Hard Rock’s elaborate aspirations for expanding iGaming operations in Florida.
A Senate approval would immediately put a stop to sweepstakes casinos operating under promotional contest laws. Experts say that these regulations allow sweepstakes platforms to function without flouting Florida’s gambling laws. In their official statement, the Social and Promotional Games Association (SPGA) said:
These Bills being withdrawn from the Senate highlight a clear national trend. Lawmakers across the country are rejecting such anti-innovation and anti-business efforts that attempt to dictate what games American adults can play on their phones.
Sports Betting Criminalisation Efforts Falter
House Bill 1467 (HB 1467), which proposed to impose criminal penalties on sports betting activities outside the Hard Rock platform, was also withdrawn due to a lack of support. This Bill was part of a larger regulatory package that aimed to close regulatory loopholes related to the Florida Gaming Control Commission (FGCC).
If approved, HB 1467 would have extended the cooling-off period required before FGCC members could join fantasy sports or sports betting operators. The Bill also proposed to expand the FGCC’s oversight to include Daily Fantasy Sports (DFS), a market that has long evaded Florida’s statutes.
DFS operators currently offer their services in a largely unregulated market. Without government approval or prohibition, operators function in a grey area. HB 1467 proposes to bring DFS under direct government oversight, similar to how online casinos and sports betting platforms in the state operate.
The legislation proceeded through multiple committees, including the Industries and Professional Activities Subcommittee and the Budget Committee – however, it failed to clear the room in the Commerce Committee. The senators filed a series of formal amendments, which may have resulted in the Bill being revoked.
The Future of Florida’s Sweepstakes Casinos
Supporters of SB 1404 and HB 1467 argue that these Bills were necessary to protect consumers and uphold the state’s contract with the Seminole tribe. However, critics have voiced concerns about the Bill’s potential for limiting competition and consumer freedom. If the Bills pass, they will support a tribal monopoly on the digital gambling space.
Both Bills could still pass in the current legislative session if Gov. DeSantis decides to extend the timeframe. However, the Governor has yet to publicly indicate whether such a move is on the cards. As a result, the future of Florida’s gambling regulations, including the fate of sweepstakes casinos and mobile betting platforms, rests heavily on the Governor’s decision. The SPGA is currently celebrating the “win for consumer choice.” Another representative commented,
This is an enormous win, not just for the industry, but also for every Floridian who values digital evolution and economic freedom. Once again, a state has rejected legislation violating consumer interests and the local economy by overcoming the scare tactics.
Similar Bills to ban sweepstakes gambling are also on hold in Arkansas, Mississippi, and Maryland; however, in New Jersey, Connecticut, and New York, similar Bills have already been introduced and enforced.