West Virginia's crackdown on sweepstakes casinos led to a mass market exodus.
Key takeaways
- Big sweepstakes companies like McLuck, Modo, and Funrize are halting operations in the Mountaineer State.
- West Virginia’s attorney general sent out nearly 50 subpoenas this year.
- The state offers legal iGaming, but online sweepstakes casinos aren’t licensed and regulated in West Virginia.
According to wvnews.com on Monday, more than 20 platforms, including numerous popular sites, stopped offering sweepstakes gaming in West Virginia. State Attorney General John McCuskey sent operators almost 50 subpoenas over the last several months.
None of the sweepstakes companies officially replied. The list of exiting sweepstakes operators reportedly includes: Baba Casino, Carnival Citi, Chance, Punt, Funrize and affiliates (NoLimitCoins, FunzCity, Fortune Wheelz, Tao Fortune), Legendz, McLuck Casino and affiliates (Hello Millions, Mega Bonanza, Jackpot, Spinblitz), Modo.us, Play Fame, Pulz Casino/Bingo, Rolling Riches, Sidepot, Spree, and Stake.
Leaving the market
McLuck planned to exit West Virginia, along with Maryland, in February.
High 5 Casino, under fire in other jurisdictions, announced in February it would cease operating in West Virginia. However, the popular sweepstakes casino was reportedly still listed in the Mountaineer State as one of its eligible jurisdictions on July 2.
West Virginia is one of a few U.S. states that offers both legalized online sports betting and iGaming. However, dual-currency platforms aren’t licensed and regulated. Those operators offer free coins to play online slots and table games, but they also have sweepstakes coins bettors can purchase and exchange for cash and prizes.
Other stands
Many other states took legal action against sweepstakes casinos in recent months. Montana, Connecticut, and Nevada already outlawed them.
New York’s legislature sent a bill banning online sweepstakes casinos to the governor last month. California, which doesn’t offer any legal online gaming, has a bill working through its Senate that would prohibit sweepstakes companies from operating in the massive Golden State market.
Lawmakers in Mississippi, Florida, and Maryland turned down anti-sweepstakes measures earlier this year. Also, despite receiving cease-and-desist letters, some operators in certain jurisdictions failed to comply.
