A recent bill in Texas targeting gambling devices like ‘eight-liners’ has progressed from the Senate to the House and is on its way to becoming law. This legislation, known as SB517, is particularly noteworthy for stakeholders and participants in the sweepstakes industry, as its enforcement could significantly influence the operation of sweepstakes casinos in the state.
In broader contexts, this year has seen a rise in anti-sweepstakes legislation across eleven state legislatures, including notable proposals in Connecticut and New Jersey. While not all proposals have succeeded—Florida, Arkansas, Maryland, and Mississippi all saw their bills fail—Montana has become the first state to enact such legislation.
These bills often avoid directly using the term ‘sweepstakes,’ yet they squarely target the industry. For instance, Montana redefined ‘internet gambling’ to encompass online casinos and platforms that facilitate gambling transactions.
The essence of sweepstakes casinos lies in their dual currency model, which these new bills aim to regulate more stringently. In New Jersey, discussions around proposed laws have included comments highlighting the threat that sweepstakes casinos pose.
SB517’s primary focus is on redefining gambling devices and the value associated with the prizes they offer. It aims to expand the definitions and increase penalties for operators that offer tangible rewards through these machines, which are prevalent in many Texas game rooms.
Texas has strict gambling laws, allowing only certain exempt activities like the state lottery and charitable games. This makes SB517 critical as it seeks to tighten regulations around physical electronic gaming machines that can sometimes operate in violation of the law.
The bill proposes a redefined scope of ‘gambling device’ and ‘thing of value,’ potentially extending scrutiny to electronic and online options, including sweepstakes casinos. As the Texas legislative session approaches its conclusion on June 2nd, the industry is poised to observe further developments regarding how SB517 might impact legal interpretations and the future of sweepstakes operations in the state.
This situation sheds light on a larger trend, with lawmakers nationwide reevaluating gambling regulations in a way that balances accountability with consumer choices.