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Social, or sweepstakes, casinos are free to play on in the beginning, but one will almost always have to make real money purchases via virtual coins these websites have come up with clever names for (i.e. sweepcoins).
In some ways, these are a rung down from the real money online casinos in terms of transparency. At least the real money sites let you know up front a deposit must be made. And funds are transferred using true processing methods like credit cards and crypto. None of this virtual coin nonsense. No offense guys and gals.
Real money online casinos also tend to hold licenses. These are issued by respected global i-Gaming hubs, some of which allow their licensees to operate in the U.S.
Introducting Sidepot
Sidepot is the new i-Gaming option available from Fliff, the Daily Fantasy Sports operator.
Idaho and Washington Explicitly Do Not Permit Sweepstakes Casinos
Washington State became the first - and only - state in the U.S. to make placing an online bet a Class C felony. That was years ago and it's akin to the laws making margarine processing in Wisconsin a crime. Neither has ever been prosecuted in modern times.
Here is everything you need to know about Washington:
Washington does not view entering sweepstakes via entry form, survey, phone, stamped self-addressed envelope or visiting a retail location as consideration.
Contests: are allowed as long as the sponsor awards the prize based on skill and not chance.
Sweepstakes: are allowed as long as the sponsor awards the prize based on chance.
Prize Promotion Laws - Washington Prize Notice Promotion Laws
In Washington, if a sponsor promotes their sweepstakes via direct mail or other printed materials saying that the recipient has or will be awarded a prize, then the sponsor must comply with specific disclosures that need to be included in the written offer or advertisement.
In Washington, if a sponsor tells a participant that he or she has won, the prize must be awarded.
Excluded from disclosure requirements are giveaway types of promotion where every participant receives a prize or a gift as long as:
chance doesn't determine who wins.
the consumer can return any purchase within 30 days for a full refund.
the participant can keep the prize without obligation.
the participant is not required to attend a sales presentation.
the participant is not required to spend any money to receive the prize, including shipping or handling fees.
In Idaho, the general promotion law applies to sweepstakes, meaning there are no additional specific requirements. However, the state prohibits all forms of gambling aside from the lottery, charitable bingo, and pari-mutuel betting.
Michigan is a No Go for Sure
MyBookie.ag became the latest Web gambling site to receive a pink slip from the heavy handed Michigan Gaming Control Board despite not offering Michigan as an option on its online registration form. The regulator is giving MyBookie.ag 14 days to stop allowing Michigan residents in as customers.
The MGCB has shown it does not discriminate.
They've previously sent these letters out to sweepstakes casinos, most notably Papya Gaming, which operates 21 Cash, Bingo Cash, Bubble Cash, and Solitaire Cash.
They got their walking papers back in October.
“Illegal gambling is not tolerated in Michigan, and we will take all necessary actions to protect our residents from such unlawful practices," the MGCB warns.
New York is Preparing
Senator Joseph Addabbo, the Chair of the New York State Senate Racing, claims the sweepstakes casino model is legal for now but operators do not have to pay for a gaming licensing fee nor does the state collect any taxes.
A ban is needed, he insists, and that requires legislation.
“One of my primary objectives as Gaming chair is ensuring New Yorkers are protected from gambling operations that have the potential of becoming more problematic without proper legislative action, such as unregulated sweepstakes casino operators,” stated Addabbo. “Many sweepstakes' operators are located offshore making enforcement limited or impossible, and our most vulnerable populations, youth and elderly, are most often targeted, which is why I want to act to address this existing loophole,” Addabbo added. The Senator expressed that the sweepstakes operators are allowing individuals to pay for virtual coins and win more coins that can be redeemed for cash prizes. “The use of money to play a game and win more money is simple gambling and should be safely regulated,” Addabbo said.
He's proposing legislation that has no guarantee of passing. But if it does...
Remember, New York sports betting sites pay one of the highest tax rates in the industry and the state is looking to bring on i-Gaming soon.
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